The General Ledger system is integrated with the rest of the Farmer’s Office programs. All information that you enter is updated to the general ledger automatically, so you don’t need to know what accounts should be debited or credited.
In addition, the individual modules that make up The Farmer’s Office get balances directly from the general ledger for specific accounts. For example, the bank balance displayed on the Checkbook window is directly taken from your general ledger cash in bank account. The Tax Deposit window in the payroll gets the balances for each tax from the general ledger liability accounts. And the payable and receivable aging reports use the appropriate general ledger account balances when printing aging reports as control totals.
This integration between the components of The Farmer’s Office gives you greater confidence in the accuracy of the report totals, bank balances, and payroll taxes due.
Some of the features of the General Ledger system include:
- Full double entry accounting system with fiscal year independent of the calendar year.
- The accounting system is maintained on an accrual basis, with option to convert the Balance Sheet and Profit or Loss Statement to cash basis for tax reporting.
- Conversion to cash basis backs out accrued liabilities in Accounts Payable, accrued income in Accounts Receivable, and converts Crops in Ground/Work in Progress accruals to expenses.
- The standard Chart of Accounts supplied with The Farmer’s Office can be modified for your specific farming operation.
- Payroll checks, payable invoices, checks, deposits and receivable invoices are automatically updated to the General Ledger.
- The flexible Review Journal Transactions window makes it easy to review what has been posted to the G/L, find specific transactions, make corrections, and print transaction reports.
- Ability to enter general journal transactions, for any adjustments that your accountant may make.
- Prints a variety of financial statements, including:
Balance Sheet with Prior Year Comparison
Profit or Loss Statement
Profit or Loss Statement with Ratios
Profit or Loss Statement with Budget Comparison
Profit or Loss Statement with Prior Year Comparison
Trial Balance Worksheet
Cash Flow Worksheet
12 Month Financial Reports (Balance Sheet and Profit or Loss)
- Financial Statements may be printed at any time, even in the middle of the month.
- A prior fiscal year can be left open until final adjusting entries are made, while you continue with work in the current fiscal year.
- Recurring journal entries can be entered just once and posted monthly with one click.
- Financial Report Generator allows you to create your own financial reports.
- All Financial Reports can be exported to Excel or Adobe Acrobat (PDF) files.
- Optional Fixed Assets module available to track assets and post depreciation expense.
Cash Basis Conversion for Farming Operations
Normally the General Ledger maintains balances on an accrual basis. For tax purposes it may be necessary to convert to cash basis. The Balance Sheet and Profit or Loss reports have the option of printing cash basis balances. The conversion process starts by backing off accrued balances for open (unpaid) vendor invoices and customer invoices.
Often farming operations will post expenses to a “Crops in Ground” or “Work In Progress” account in the Assets section of the Balance Sheet. Expenses may be recognized at some point in the future, such as at or after harvest. (This process is normally handled by the Cost Accounting’s Work in Progress Posting Report.)
For cash basis reporting purposes, expenses that are posted to the Crops in Ground accounts need to be moved to their correct expense accounts on the Profit or Loss report. The financial reports in the General Ledger system use the Job/Phase setup to determine the correct expense accounts for these expenses when performing the conversion to cash basis. This makes generating a cash basis financial report with a Crops In Ground account automatic.