Budgets and Financial Records

     Standard ranch financial records cover all production and financial management aspects of a beef operation. Use records to evaluate your business in terms of efficient use of resources and productivity. Records are important for ranch planning, tax reporting, and applying for credit.

Budgets
     Decisions are only as good as the information on which they are based. Budgets provide the information for making ranch management decisions and are constructed to estimate the outcomes of future activities. Budgeting allows you to anticipate problems that you may encounter, and to alleviate or avoid them.

Financial records
     The way ranchers keep financial records varies, but the key is to use a system that provides the information you need to meet your responsibilities. The minimum set of financial records should include a balance sheet, a statement of cash flow, and an income statement.

     There are several ways to keep accurate records. Until the advent of the computer, all records were "hand kept," and this still is a good method for many farms. Hand-kept records are inexpensive and easy to store. On the other hand, this method may be slow and subject to errors. Retrieving information may be time consuming if extensive records are kept.

     Computerized record systems are available, from simple checkbook balancing systems to sophisticated, double-entry accrual programs. Computerized systems for production records also are available in a range of features and reporting capabilities.

     Advantages include easy retrieval of information and reduced chance of mathematical errors. However, entering information takes time, and entries must be posted properly.

     If you choose a computer system, it should meet the requirements and objectives of your individual operation.

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      Small Beef Cattle Farm Management.