The Importance of Keeping Farm Records
Contrary to what you may think, farming is not just about planting crops, reaping the harvest, and making massive profits. There is a business aspect to it that relies heavily on facts and figures.
As much as you’re keen on getting the best produce from your farm, you should also extend that passion to keeping detailed farm records because it is a vital part of every business, including farming.
With so many activities involved in farming, it is very easy to lose track of inventories and mismanage funds. Record-keeping helps you to curtail that.
You should keep records of equipment, crops, expenses, deposits, and everything that concerns your business. This helps you to develop discipline and accountability as a farmer.
As a farmer, you should have a sales record that details every produce that is sold from your farm. With this record, it is easy to know the ratio of profit to losses and intensify your business efforts.
With a well-documented farm inventory, it is very easy to detect if any of your farm equipment goes missing because you already have a list of all the things you own.
With a farm diary, you are able to measure daily productivity, stay on top of your farm operations especially if you do farming on a large scale. Nothing will slip past you if your records are up to date.
Keeping your financial books intact prepares you for the tax season as a registered business owner. It also helps to track your spending, guides your farm budget and financial planning.
If you’re an employer of labour, it’s a no brainer that you must have a labour/an employee record that has the names and details of people that work for you.
The importance of keeping farm records cannot be overemphasized. Through daily record keeping, you are able to make sound financial projections all through the year.
Overall, record-keeping makes you a good farm manager and prepared for any changes that may arise in the nearest future.
