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The Ins and Outs of Farm Finances

A lot of the work that goes into running a farm is strictly hands-on. After all, the cows aren’t going to milk themselves. Running a farm successfully takes loads of skill and know-how, with much of it being learned via trial and error. On the other hand, there are parts of running a farm that take a little less technical know-how and a lot more computer savviness. If you know how to build a website, you can potentially increase your income by making it more convenient for customers to place orders remotely. The long story short is farming, by trade, is a professional industry. Handle your finances with the same tools that other professionals use and your financial outlook will improve greatly.

How Modern Farmers Balance the Books

Farmers have various expenses, so they need a very good record of all monies coming in. Sometimes farmers can depend on weekly or monthly orders from customers, and other times they have only one season of the year to make the majority of their income. Whichever is the case, farmers need accounting software just like other businesses.

Use this article to guide you in the benefits of Quickbooks and Freshbooks for your business. Farmers are more frequently using digital means for record-keeping, and these two software platforms are arguably the most popular options. Not only does keeping accurate records save farmers time, but it also helps them when they go to apply for business loans and grants.

The Practicality of Using Accounting Tools in a Farm-Based Business

Some farmers still use notebooks to keep handwritten logs of their expenses and profits. It can be quite useful to use pen and paper to keep track of your full-grown pigs versus piglets. In fact, there is no reason to actually change your overall approach to farm finances. With various digital accounting tools, your farm will simply have a more accurate record of its current financial outlook. You can use these tools to compare sales from one day to the next, or even calculate how much profit you expect to make in a season.

Reshaping Your Day to Include Accounting Tools and Software

If you normally get up before the sun rises so that you can feed the chickens or get ready to run the tractor, you might not know when you will have the time to balance the books. Farmers are busy, and their days are filled with active, physically grueling tasks. In addition to actively working, lots of farmers also have to be at various locations throughout the workday. You may want to bring your laptop along for the ride, or even use mobile app versions of accounting software to make quick changes. If you have a family-run farm, someone else could be tasked with doing all the financial work. Yes, you may need to reshape your workday to ensure that your finances are taken care of in a timely manner, but this also ensures that you will never encounter any unpleasant surprises. 

Your farm may have been in your family for over 100 years, or you could belong to the newest crop of budding farmers looking to establish a new career. Regardless of your experience in the farming industry, now is the best time to begin using software like QuickBooks and Freshbooks to keep your financial records accurate. You don’t want to have to tally up all your paper receipts during tax time, nor do you want to have to guestimate what your actual profit margins are.