FarmIT 3000 - Financial Reports

Farm IT Help - Financial Reports

Financial Reports

FarmIT3000 Gold provides the most common financial reports to enable you to assess your business performance. You have probably had an accountant producing your final accounts and FarmIT 3000 Gold will probably not change this, although it should make their job easier. There will still be a need for an accountant to analyse your accounts and make adjustments to finalise them.

The financial reports available to you include, 'Profit and Loss', 'Accounts Receiable and Payable', 'Trial Balance', details of account, and a basic balance sheet.

All of the reports are of course based on the data you enter and therefore accurate data entry is very important, as is the need to think about how you wish to analyse accounts information, for example:

Let us assume you sell both Lambs and Cull Ewes. Both are of course sheep, when creating an invoice to record the sale of the animals we could credit the sale to a single income account called 'Sheep'. Anaylising this account we would be able to see all the income from the sale of sheep, but we would be unable to break it down into Lambs or Cull Ewes. A much better approach would be to create two accounts, one for the sale of 'Lambs' and the other for 'Cull Ewes'. Then when we create the invoice we would credit the Lamb sale account for Lambs and the Cull Ewes account for the sale of Cull Ewes, thus we may then see in our analysis of the accounts the actual income for Lambs and compare it to that of Cull Ewes.

Similarly we should think about the expense account we create and how we charge expense items to them, for example if you wanted to know at the end of the year exactly how much money you have spent on a particular item for example Vetenary Bills then all items of this nature need to be debited to a particular expense account for example 'Vet Costs'.