With a computerized farm record keeping system, the recordkeeper can use software to store information, summarize data, generate and print reports and sort transactions into categories and sub-categories.
Storage of data is a very valuable component to a computerized system. The data entry process may take you as long as in a hand written system. The time saver is the summarization of monthly and year end data.
As in any system, good records and reports result from the data entered. The record keeping system can only summarize and report what you have entered.
There are many components to a farm record keeping system including transactions and the end results you generate for your management team. See Fig. 1-1.
Your receipts and expenditures should be entered in a timely manner complete with detail appropriate for the results you want to generate. For example, you should include detail on bushels of grain sold with your grain receipts if you want to know average price per bushel received at the end of the year. Some of the various types of information you can develop from a record keeping system are: Schedule F information (Cash Income Basis), data for tax reports, enterprise records, credit accounts, financial statements (net worth, income statements, cash flow), depreciation records and farm business analysis. See Fig. 1-2.
