Just how meticulous are you about keeping detailed records for the finances for your farm? Most folks do a decent job, but when you kick it up a notch you can really see the benefits that excellent record keeping can provide.

We encourage business owners to track every dollar coming in and out of the operation. You should certainly be tracking where you are spending your dollars and where the dollars coming into your business are coming from. Be sure to keep all receipts and invoices and keep business and non-business expenses separate.

Reviewing and keeping your income statements and balance sheets is something you should be doing every month, all year long. Your income statement shows you your expenses and income over certain periods of time and your balance sheet lays out your liabilities, assets, and equity during at certain points in time as well.

These are just  some of the basic things you should be doing as your look to keep you farming operation compliant and financially successful. According to the IRS website, good business record keeping can assist you in the following:

  • Monitor the progress of your business
  • Prepare your financial statements
  • Identify sources of your income
  • Keep track of your deductible expenses
  • Keep track of your basis in property
  • Prepare your tax returns
  • Support items reported on your tax returns

Having a good accountant by your side will allow you to map out your expenses and grow your business at an even faster rate. Reach out to us today so we can assist you with stellar record keeping and much more.