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Is Record Keeping Really Key to Farm Management?

At the beginning of each new year, people make new resolutions to make their life better. For farmer’s, better record-keeping should always be on the list of resolutions. Modern farming is a business much more than it has been historically. Simple good farming isn’t enough anymore to make it in this industry. The way to success is production and financial management.

To do this, a good farmer needs to keep accurate and organized records by forming a functional system of record keeping. Some people may mistakenly think that records are only for taxes. That simply isn’t true. Records can help you improve your farm by showing you how to make changes to make things better in the future.

A manager of a farm needs accurate and thorough records so they can best know how to manage the farm. This will help improve profits. These records will highlight inefficiencies in the business so that the manager can make effective changes and see progress.

There are plenty of record-keeping system to choose from. You could take the simple route using pencils and paper forms or get computer software specially designed for the task. Some systems are a combination of paper forms and software. Get a system that you can easily understand and is made specifically for managing farms. This system should serve both the purpose of managing and planning farm operations, and record-keeping for tax and legal purposes.

When choosing a system, first think about what you want it to do. If you don’t care for a system that will help you with financial and business management, then a simpler system that is aimed at filling tax necessities should be enough. Farmers who hope to improve profits or get out of debt should invest in a more detailed system.

The right system should be able to show you what you need to know when you need to know it about your finances and operations. It will make the big picture more understandable.

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