JSS 3 First Term Agricultural Science Lesson Note – Records and Book Keeping

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Topic: Records and Book Keeping

Content:  (i) Computer Aided farm records and its benefits

(ii) Definition of book keeping

Computer Aided farm records and its benefits

These are computer software programs that can record basic income and expense data for farmers, with quick summary and ability to prepare variety of financial reports.  In a farm business, some basic reports are needed. The key ones are:

1. Transaction journal
2. Depreciation schedule

 What is available to keep computerized farm records?

Farmers, who need accurate, complete financial statements and analysis should consider using some form of computer record system such as:

1.Simple cash system: Quicken

2.General cash/Accrual accounting ….

Which system is best for your farm business?

No one can predict which program is best. The following may help in the decision:

A.Examine farm specific programs if you:

1. Need complete, well documented financial statement,
2. Have, or are planning on amount of debt,
3. Have many employees,
4. Have someone who has some knowledge of accounting
5. Foresee a need for more extensive records in the future

B.Examine cash-based or generic programs, eg Quicken, if you:

1. Keep records primarily for tax purpose,
2. Prefer to use spreadsheet, FINPACK, AFRA or an accountant to generate and analyse financial statements
3. Have few employees
4. Can get needed production elsewhere
5. Have little knowledge of computer

 Benefits of Computer Aided Records

1. There is easy of entry of data
2. It allows cheque to be written with computer as data are entered.
3. It allows separation of data into enterprise group
4. It is less capital intensive.

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