Farm Accounting

zekeman · Jan 24, 2005

Have recently attended a workshop for Farm Accounting, two more to go. I left the workshop more confused? and I was not the only one? think the instructor thought every body had some accounting background, "Not I". Question? How many small Farmers/Ranchers do their own accounting? How about with accounting software, What reasonably priced (under $200.00) software do you recommend. Is there accounting software specific to farming in this price range?
P.S. I will also post this on countrybynet.com

Ron

rdln · Jan 24, 2005

Do you want help with the ledger or schedule F? probably any business ledger software would work but knowing how to apply expenses to your advantage for schedule F purposes may require an accountant with farm experience.

try this question here also

JerryG · Jan 24, 2005

I think that most use an accountant. I know that I do.

zekeman · Jan 24, 2005

rdln
The apply expenses seems to be it , plus depreciation? (section 179 ? ) Trying now to get instruction publications from IRS.
Was hoping to find software with a chart of accounts already setup for farming ? What do you do with a barn I started building 11/04 but still under construction into 2005 ?????
I will ask the instructor at next class, hit him with this specific question, problem is, if everybody gets to ask specific questions the class slows down to a crawl and he won't get to complete the coarse materials in 3 two hour classes so most of us have been holding back. Last year this class was only 1 session, I did not attend, but it was expanded to 3 sessions this year because of the difficulty & complaints. This class is funded with a grant from a local Foundation with no cost to the farmer, don't want to complain too much?

Ron

OkeeDon · Jan 24, 2005

do a Google search for "farm accounting software". This one looks like it would be worth downloading to see how it works. It has a pre-loaded chart of accounts, and sells for $249.

cowboydoc · Jan 24, 2005

Before I could afford an accountant we just used quickbooks to keep track of expenses and income. It's very easy to use. Then we just used one of the tax preparing software kits to do our taxes. Our accountant does it all now but we still use quickbooks to do our daily accounting. Quickbooks also has a quickbooks account filing program too. It's really not as hard as they make it out to be.

DUMBDOG · Jan 24, 2005

The building cannot be depreciated until it is put in service, when it is completed, the start date has no effect upon the return. Section 179 cannot be used to create a loss for the schedule F, in other words it is only available to the net income from the enterprise.

zekeman · Jan 24, 2005

DUMBDOG
is section 179 a one time deduction for the 2004 tax year, it might not be renewed by congress for the tax year 2005 ? can the money spent on the materials in 11/ 2004 be deducted/claimed in the tax year 2005

Ron

DUMBDOG · Jan 25, 2005

Section 179 is part of the tax code and just like anything else it is at the wim of congress, you can go on the assumption that it will be there the next year until they change the law. It has been around for quite a few years.

If I understood your post correctly, you started to build a barn in November of 2004 and it will not be completed until this year. The materials and any other costs associated with the barn would be capitalized and depreciated over its usefull life. A barn would be considered real property and not subject to a Section 179 deduction.

zekeman · Jan 25, 2005

DUMBDOG
Thanks, with your two replies about section 179 its starting to become clearer as to the use of this section.
Have searched the net and found the link below for converting
QUICKEN personnel financial software to Farming, I have quicken 2003 software which was given to me but never opened. Weather is nasty in NY which means I have time to spend inside for the paperwork that I have neglected for months.
Ohio state cooperative
Cowboydoc
I will try QuickBooks, if converting Quicken gets too complicated. I have talked to a friend who operates a small printing business and he uses it for his accounting books( plus a real good tax accountant), he has an older version that I can "borrow" to see if it helps
OkeeDon
Thanks for the link, If the above two programs don't work I will do a overnite download of their demo, judging
from their website it might be worth a try

Ron