If you own a farm, you are not just a farmer, or specialized worker, but you are also a business owner. Much of the work that farmers do goes unseen by the general public, especially the “behind the scenes” work that a farm owner must do to keep their farm operational.
Just like any other business owner, the responsibility to keep a farm operating, employees paid, safety standards high, and much more all fall on farm owners.
Farmers are traditionally seen as doing a lot of manual labor, but so much of what a farmer does actually happens behind a computer screen or at a desk. Keeping farm records is just as essential as it is for any other business or industry. Here’s why:
Proof of Finances
Farms must file taxes and report on income and expenses in the same way other businesses or entrepreneurs must do. In order to file with the IRS you need detailed and accurate records of financial details, proof of income, expenses, inventory, and tax returns.
In addition to filing taxes, some government institutions or lenders may require farms to submit accurate records over several years. Tracking things like production, acreage, water or soil used, etc…
Farm Management Tools
Keeping farm records will help you as the owner and other farm management staff make educated decisions in a multitude of areas, Utilizing your farm records to create tools such as balance sheets, cash flow or income statements can help you know when to expand, when to hire more help, when you can purchase new machinery and so on.
Maintaining Environmental Regulations
Some farms may be affected by certain environmental regulations based on location. It is becoming more and more common for farmers to be asked to track their chemical use, livestock waste treatment, water use and more as it pertains to protecting our environment.
Selecting a Record Keeping System
As a farmer and entrepreneur today you essentially have two available methods for record keeping. The first option is to do it by hand, manually. Farm record keeping has been done this way for years, It is cost efficient, and easy to implement. However, manually keeping your farm records leaves a lot of room for errors, is time consuming, and gives you little opportunity to utilize collected data for analysis and future farm management.
Digital farm records are the second option and becoming more and more popular as they are fast, efficient , and accurate. Our AG Technology is a great option for farms wanting to implement digital farm records and benefits for the decision making power they give you.
As a business owner, you are only as successful as your record system allows you to be. Set yourself up for success and let Pipe AG introduce you to digital farm records today!