Bulletin E1144
Farm Records Book for Management
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October 26, 2015 - Gerald Schwab
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This farm account book has been prepared to help you do a better job of managing your farm. Knowing your farm’s financial performance is a necessity in the highly competitive, commercialized business of farming today.
With this record book, you can keep an organized account of cash income and expenses. The column headings correspond to those on the farm income tax form, Schedule 1040-F. The most important use that can be made of this record is to help you analyze your farm business and make needed improvements. Michigan State University Extension can provide other assistance, too. We suggest that you:
1. Keep the income and expense accounts current as the year progresses. Close the book at end of year by summarizing the income and expenses. Take inventory to prepare an end of year net worth statement.
2. Compare the figures for your farm business with those of other farmers. Identify the strengths and weaknesses of your farm business. Your MSU Extension agent can provide you with a Telfarm busniss analysis report for various types of farms.
3. Maintain the strong points of your farm business and improve or eliminate the weak points.
4. Consult with your Extension management or agricultural agent and/or creditor about ideas or changes you have in mind to improve the business.
5. Use this book when planning your credit needs. Present the facts to your creditor and discuss the plans with him/her.
6. Know the facts about your farm business. This knowledge can help you succeed and at the same time build a strong agriculture.
