As a CPA firm specializing in agribusiness, we often encounter a wide array of bookkeeping methods — from shoeboxes of receipts to meticulous ledgers. With the advent of user-friendly platforms like AgriBuilder, maintaining accurate and efficient records has become significantly more manageable. Improving bookkeeping practices not only opens up opportunities for growth but also ensures compliance and avoids potential pitfalls.

Maintain standards

Standards in bookkeeping are crucial; yet in practice, agricultural accounting results can be quite diverse. To build a solid foundation, adopt common, basic approaches that can serve as the bedrock for your financial management. Effective farm accounting transcends simple bookkeeping. It is a tool for informed decision-making that can profoundly impact the sustainability and profitability of farms.

One of the key questions we ask our clients is: “Are you using your financial statements as a tool in your decision-making?” Financial statements are the foundation of a farm’s financial reporting, offering invaluable insights into the company’s health and guiding strategic decisions.

Effective bookkeeping

The two most important tips for keeping good books are to reconcile in a timely manner and have a good chart of accounts. There’s nothing worse than reconciling six months of bank statements at once because you’re behind. And there’s nothing worse for a CPA than seeing 10 repair accounts when one would suffice. Other tips include:

Resources and tools

For those who might feel uncomfortable asking their adviser basic bookkeeping questions, Xero offers a helpful glossary that explains simple bookkeeping terms and concepts. This can be a great resource for anyone looking to build their confidence in managing their farm’s finances. Check out  Xero’s Glossary.

At Adams Brown, we also provide a powerful farm management software solution, AgriBuilder, designed specifically for agribusinesses. It has a user-friendly interface, offers detailed reporting and inventory management, and monitors cash flow. You can learn more at the AgriBuilder page. Or contact Adams Brown, or a CPA firm near you, with questions about setting up your own bookkeeping practices.

McCurry is the ag brand ambassador for Adams Brown, strategic allies and CPAs. The Adams Brown agricultural business team knows about farm life because most have lived it. They provide resources to navigate complex tax structures, financial and estate planning, accounting and more. Contact McCurry at [email protected] or 316-262-6578. The statements here are intended for discussion purposes only and should not be interpreted as legal or tax advice. Please consult your own business accountants or financial and legal experts.