Important records in groups
- A cash register
- Savings book-Pass books
- Minutes book
- Loans application forms
- Group register
Record keeping is a systematic process by which information is created, captured and maintained for the future use of an organization or individuals. Good record keeping is necessary for efficient farm management
There are three main reasons investors should keep good financial records is for;
- Income tax reporting
- Obtaining credit
- Management tool
Keep the following guidelines in mind when implementing or reviewing your financial record keeping system.
- Keep it simple
- Well filed
- Detailed financial control system
- Timely information
- Phase 1: Recording receipts and expenses
- Phase 2: Keeping and Using Inventories: Provides fundamental information for Balance Sheet and Income Statement
- Phase 3: Recording crops or information: Complete, but simple, filing system that includes, through field records, all the relevant information pertaining to the different farm enterprises e.g. planting, harvesting
- Phase 4: Analyzing the farm business