Unit 2 Record Keeping

What makes a successful agribusiness? Dedication Knowledge Money = PROPER FINANCIAL MANAGEMENT Jupiter Images

Record Keeping SAE projects help with record keeping skills Important to keep good records for three reasons: 1.Management 2.Obtain credit or loans 3.Cash flow of SAE Jupiter Images

Types of SAEs Exploratory – Shadowing a Vet, feed mill operator or loan officer Research – Select an area to research and determine the outcome Placement – Student works for someone

Types of SAEs Entrepreneurship – Student owns their own business Ex: produce and market livestock or crops; lawn care business – MOST common SAE = Entrepreneurship!

What is an enterprise? Enterprise – One total part of the program – Must keep each enterprise separate Jupiter Images

Inventory Beginning – Itemized list of all assets at the start of record keeping period Ending – Itemized list of all assets at the end of record keeping period

Valuation of assets Depreciation – Buildings, fences and machinery decline in value over time – Use the cost minus depreciation value to figure out total value Draft, Pleasure, or Breeding Livestock List livestock that have reached their maturity value at their book value Machinery, Equipment, and Fixtures List at their remaining book value Land Improvements, Buildings List improvements such as tilling, buildings, and fences at their remaining book value Jupiter Images

Inventory Assets Livestock – Price per pound, hundred weight or head Stored Crops – Price per bushel, ton, bale or pound Growing Assets – Cost invested per acre, flat, individual plant or individual animal Other Assets – Price per hundred weight, ton, gallon, bag, item or acre Jupiter Images

Record Keeping Transactions Transaction – Any exchange of money Expense – Transactions where any money is spent Income – Money is gained

Types of Transactions Sales and Income Transactions – Revenue derived from SAE Expense Transactions – Cost of goods and services involved with SAE Exchange Labor Transactions – Exchange of labor for money or use of equipment Jupiter Images

Types of Transactions Non-SAE Income Transactions – Divided into four areas: 1.Agricultural Earnings Not Related to the SAE 2.Earnings and Income from Non-Agricultural Activities 3.Gifts of SAE Assets 4.Gifts and Income Other Than Earnings Land Transactions – Any land being used and all expenses must be recorded

Closing Records Balance Sheet – List of all assets and liabilities – Use this to determine the owners equity or net worth.