Fresno, California – There is no one-size-fits-all for farm accounting software, let’s get that out of way right off the bat. And what can be more confusing for agribusinesses is that many companies label their software products under the category of ‘farm accounting software.’ But when you look under the hood, you find that it’s not what you need to truly see the data you require to put you on a platform for growth.
At Datatech, we see this all the time, software products on the market that put cost center breakdowns based on the accounting and tax year, usually January through December. However, the growing, expense and income cycles for agricultural products can vary greatly. For instance, pruning vines and trees may be the start of a new crop year, but that work may start in December of the previous year. You may purchase fertilizer or other supplies in December for the next year’s crop. Income may not be received in the year the crop is harvested, especially if it is harvested close to the end of the tax year or it is a crop that can remain in storage for an extended period. Also, if you are a member of a co-op, you may not receive the full payment on your crop for a year or two after harvest.
A crop cost accounting system should allow you to group all of these expenses and income into one report, based on the crop year that it is assigned to, regardless of when the expense is incurred, or income received. This crop year reporting should be maintained independently of your tax year accounting but is the result of a one-time entry for both types of reporting. Sound interesting?
This is just one aspect of farm accounting software that will truly enable agribusinesses to track data fast and accurately. The Farmer’s Office from Datatech incorporates this method and many other unique accounting functions for comprehensive cost accounting, payroll, and general accounting. It all boils down to your data, your decisions, and your profitability.
We invite you to download our complete ‘Solution Guide on Ag Accounting” here. It answers the question, “What are some of the unique requirements of a farm cost accounting system?” Go from clutter to clarity and greater profitability with Datatech. We invite you to request a personalized free demonstration of The Farmer’s Office by going here or call 888-222-3282 extension 107.