Overview of Record Keeping Session 12 Overview of Record Keeping 

Objectives: At the end of this session, participants will be able to: discussed the importance of keeping records; enumerate the different types of records needed.

What is record? A written proof of what happened, what is happening, or what is anticipated to happen. a written proof of what was said, and who said it. examples : minutes of a meeting, a report on the number of group members who worked in the group project, a record of the names of members who have brought in their membership contribution.

Why keep records? Record keeping is important because you cannot keep everything in your head. People are forgetful by nature.

Advantages of record keeping: You will know. . . how much money you have received, how much money you have spent and how you have spent it. how much are the amount of inputs and materials used to grow the enterprise. the price of produce sold and cost of inputs. You can calculate whether you are making a profit or a loss.

Advantages of record keeping: You will be able to. . . to make better decisions on what to buy and sell. keep records of buying and selling on credit, so that people cannot cheat you. Know how much volume you produce

Types of Farm Business Records: Production Records Labor Records Cash Inflow Records Cash Outflow Records Home Consumption Records Profit and Loss Records Fixed Asset Records Sales Records

Practice of keeping farm business records Session 13 Practice of keeping farm business records

Objectives: At the end of this session, participants shall have: Enumerated the kind of records needed; Described how to maintain them on a regular basis; Identified the kind of records needed; Discussed the ways to maintain them on a regular basis.

Production Record  It provides information on production output.  Helps the farmer to understand how well his production programme is performing.  It can be used to compare the performance of one farm with another farm.  It is necessary for assessing the farm business plans prepared previously.

Enterprise/Commodity Production record Enterprise/Commodity (a) Land size ha (b) Expected yield/ha (c) Total yield (tons/kg/bags) d = (bxc)

Enterprise/Commodity Production record Enterprise/Commodity (a) Land size ha (b) Expected yield/ha (c) Total Expected yield (tons/kg/bags) d = (bxc) Corn 1 16,000kg/ha 16,000 kg

Labor Record  It provides information on the number of people required for each activity and the number of hours they will take each day.  It will assists the farmer in understanding the labor requirements for each activity.

Labor record Date Activity Number of people working Number of days taken (d) Total number of days taken e = (cxd)

Labor record Date Activity Number of people working Number of days taken (d) Total number of Persondays taken e = (cxd) 25 Feb 2010 Land preparation 2 4 30 Mar 2010 Planting 6 12 6 Oct 2010 Harvesting 1 8

Cash Inflow Record  help farmers to prepare enterprise budgets for the next round of planning.  helps farmers to construct cash flows for the farm.

Cash Inflow Record Date (a) Sales/output (b) Quantity (c) Unit price Total income e=(cxd) Comments (f) Total

Cash Inflow Record Date (a) Sales/Output (b) Quantity (c) Unit price Total income e=(cxd) Comments (f) 12/04/2010 Sold Corn 500 kg 23 per kg 11,500 Sold at farm gate 15/04/2010 400 kg 22 per kg 8,800 Sold at town market 20/04/2010 200 kg 4,600 25/04/2010 21 per kg 8,400 Total 1,500 kg 33,300

Cash Outflow Record  help farmers when they need to set up enterprise budgets for the next round of planning.  help the farmer when he needs to calculate the cash flow for the whole farm.  provides information of all the activities that require the farmer to spend money either to buy inputs or pay for services and operations.

Cash Outflow Record Date (a) Particulars (b) Quantity (c) Unit price Total Expenses e=(cxd) Comments (f) SUBTOTAL

Cash Outflow Record 25/01/10 Purchased seed 50 kg 50 2500 Date (a) Particulars (b) Quantity (c) Unit price (P) (d) Total expenses e=(cxd) Comments (f) 25/01/10 Purchased seed 50 kg 50 2500 Bought from Pedro 01/02/10 Purchased fertilizer 1 bag 700 Bought from Dalisay 18/02/10 3500 25/02/10 Labor 4 hrs 200 800 Did some of the work myself Labor Plowing 5 hrs 500 05/03/10 12hours 300 3600 local Pesticides 1 liter 1000 Bought from Letecia 05/10/10 Transportation 1 Hired Go Trucking Bags 40 2000 Mabuhay Packing 06/10/10 Harvesting 8 hrs 250 Hired from barangay TOTAL 19600

Home consumption record assists farmers to know where some of the income from the farm enterprises is going; helps him make a business decision whether to sell all of his food crops to generate cash or to consume food as an alternative; records produce that have been stored, consumed, or given as gifts to relatives, friends and family members; provide information on the amount and the value of what the family has consumed from the farm or has given away;

Home consumption record Date (a) Consumed items (b) Quantity (c) Unit Price (P) (d) Total Value e = (cxd) Comments (f) Total

Home consumption record Date (a) Consumed items (b) Quantity (c) Unit Price (P) (d) Total Value e = (cxd) Comments (f) 5/03/10 Corn 50 kg 20/kg 1,000 Family 5/04/12 1000 Total 100 kg 2,000

Profit and Loss Record  helps to keep track of profits and losses.  helps farmers to analyze his enterprise and to plan for the next cropping season

Profit and Loss Statement Measuring my enterprise profit for the period _________________ Area / size of the enterprise _________________ Quantity (a) Unit Price or Cost (P/unit) (b) Total (P) c=axb Income Sales Home consumption Other Total Income (a) Expenses Inputs and Materials: Seed Fertilizer Pesticide

Profit and Loss Statement Measuring my enterprise profit for the period _________________ Area / size of the enterprise _________________ Quantity (a) Unit Price or Cost (P/unit) (b) Total Value (P) c=axb Field Operations: Land preparation Plowing Planting Weeding Harvesting Storage Fee Total costs (b) Profit (a-b)

Profit and Loss Statement Measuring my enterprise profit for the period _________________ Area / size of the enterprise _________________ Quantity (a) Unit Price or Cost (P/unit) (b) Total (P) c=axb Income Sales 1500 kg 22.20 33300 Home consumption 100 kg 20 2000 Other Total Income (a) 35,300 Expenses Inputs and Materials: Seed 50 kg 50 2500 Fertilizer 2 bags 700 + 3500 4200 Pesticide 1 liter 1000

Profit and Loss Statement Measuring my enterprise profit for the period _________________ Area / size of the enterprise _________________ Quantity (a) Unit Price or Cost (P/unit) (b) Total Value (P) c=axb Field Operations: Land preparation 4 200 800 Plowing 5 500 2500 Planting 12 300 3600 Weeding Harvesting 8 250 2000 Storage Fee 3000 Total costs (b) 19,500 Profit (a-b) 15,700

Fixed Asset Record  helps farmers remember when and for what price they bought the equipment  helps farmers remember when to repair or replace an item

Fixed Asset Record  helps farmers calculate the fixed costs for their farms when calculating the profit for the whole farm.  Includes farm equipments (e.g. tractor), implements and tools, packing shed, farm infrastructure (e.g. fencing)

Fixed Asset Record Life Date Items Purchase price (P) Quantity Span (Years) Comments

Fixed Asset Record TN-09 Life Date Items Purchase price (P) Quantity Span (Years) Comments 1/2/2008 Hand tools 800 5 2-3 Replace in 2011 3/4/2008 Knapsack Sprayer 1000 3 Bought from Pedro 4/4/2008 Irrigation pipes 2000 10 Bought from AgriCor The life of the item varies.

Monitoring the record keeping process Keep the records up to date Keep records per enterprise on a regular basis Agree who will be responsible for keeping the records Separate records should be kept for each farm and farmer Meet regularly to discuss the entries that they are making and any noticeable differences Spend adequate time for the group to discuss the records or any problems the teams might have