Horticultural accounting and its importance

The accounting farming is the starting point for the information reliable on the environment involves the process of production , establishing appropriate controls and gathering adequate information to serve it for decision making . All agricultural sector should make use of accounting, regardless of the importance of their exploitation, and to thus obtain a better understanding of the economic result and also has a better knowledge to determine whether to continue in his current crop, diversify, combine or lease the land .

Agricultural accounting services such as bookkeeper brisbane also applies to other purposes such as obtaining necessary and correct information to meet the requirements of payment of tax income; help plan the improvement of the infrastructure of the farm, so it will have more knowledge about business management and profitability of the business, according to the benefits obtained on the farm. It also obtains the necessary information to make comparisons between periods and determine if there have been mistakes in the future can be corrected according to the experiences, provide the information necessary to meet the requirements requested by the financial entities for the processing of credit .

The difficulties of horticultural Accounting

The application of accounting principles to agricultural activities raises a number of specific to this type of economic activity difficulties:

 

  • The normal growth of animals that possess, which involves changes in value , also should be considered the destination to be given to animals. According to the destination, they can be considered as factors of production or as products . If a calf is sold for meat production, it is a product , if kept to become dairy cow is a factor of production. But you can also change the target in function of their growth. For example, after a life as dairy cows, it can be converted into a product and animal waste.
  • Difficulty in identifying the expenses and income family expenses and income of the company .
  • Agricultural activity depends on certain factors hardly controlled by man , including climate.
  • The valuation of the cost of production of crops on land or in the process depend on the stage of development of the crop.
  • The consumer direct product and non – monetary remuneration of work daily.
  • The combination of agriculture and livestock which hinders the determination of the cost of activities.
  • Existence of family labor.

Agricultural activity

Agricultural activity remains the most important of the economy national, for the contribution to gross domestic product , as a generator of foreign exchange and as the main source of work.

Objective of agricultural accounting

The administration in a company agricultural seeks answers to the following issues:

What to produce?

How to produce?

When produce?

To get an overview about these three questions entrepreneurs need accurate and timely information, how they are moving the markets internal and external to project what will occur as costs .

The Administrator gets this information using the system of agricultural accounting, which makes available to the employer for the most accurate and timely decisions.

Because in agriculture changes in the market are frequent, the producer must have techniques of research and make projections to provide it often changes in the processes of production. Knowing what are the costs own production, projection and diversification of new crops, helps you make better decisions when determining that it is more profitable to produce.

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