By Andi Anderson
Farm financial recordkeeping plays a key role in improving farm efficiency. Choosing the right software makes tracking income and expenses easier, helping farmers make better decisions throughout the year.
Start by identifying your accounting method—cash or accrual. Most farms use cash accounting, which is simpler and widely supported. If your farm uses accrual accounting, you’ll need a more advanced system.
Next, decide between desktop-based or cloud-based systems. For example, PC Mars installs on your computer, while QuickBooks and Quicken offer cloud options. Manager.IO supports both desktop and cloud use.
Some programs, like Red Wing or PC Mars, are designed specifically for farms with pre-set farm categories. Others, like QuickBooks, are general-purpose but allow for custom categories.
Also, check if you prefer single-entry or double-entry systems. Single-entry, like Quicken, is simpler. Double-entry, like QuickBooks, is more accurate but needs accounting knowledge. Always ask your accountant which method they recommend.
Many software programs let you download bank transactions, saving time and ensuring consistent records. Review each program’s reporting ability, especially if you need to file IRS forms like Schedule F or Form 4835.
Consider the cost too. Some programs have annual fees, while others, like Manager.IO’s desktop version, are free. Also, check if the software supports inventory tracking, especially for grain.
Finally, look at customer support. Some cheaper options offer only guides, while others have live help. Reliable support is important if you're new to farm accounting.
Use free trials to test software before buying. The best program is the one that fits your needs and feels right to use every day.
Photo Credit: istock-dusanpetkovic
Categories: Illinois, Education