1 / 13

Chart of Accounts

Chart of Accounts.

leda
Télécharger la présentation

Chart of Accounts

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Chart of Accounts

  2. Rancher Joe needs your help!!!After the recent billiards Rancher Joe realizes that he will not have enough feed for his entire herd for the remainder for the winter. He has two options: sell his cows or buy more feed. The rancher knows that the local sale barn is getting _$1000_ for bred cows and he also knows that sorghum hay is priced at __$70__per ton. Help Rancher Joe decide what to do!!!

  3. Rancher Joe needs your help!!! • Can Rancher Joe still make a profit? • Can Rancher Joe still be profitable?

  4. What is the difference between profit and profitable? • Profit- All costs-All income=profit • Profitability-The degree at which a business is making a profit

  5. Degrees in the FFA In the FFA, it is not acceptable to just make a profit, to receive the Chapter, State, and American FFA Degree. To receive these degrees you must have a profitable Supervised Agriculture Experience Program and earn a specific amount of money.

  6. Farm and Ranch Records • To determine a profit, farm/ranch records must be kept. • After creating a record keeping system your records may be used to: • Measure financial condition • Provide data over the business • Assist in obtaining loans • Measure the profitability of each individual enterprise • Assist in deciding on new investments • Income tax purposes • Prepare a repayment schedule

  7. Cash Flow • One very important element of record keeping is a cash flow statement. • A Cash flow statement incorporates financial records and farm data • A Cash flow is a map to the entire years farm/ranch production • A Cash flow is: • Divided into months • Divided into enterprises • Divided into income and expenses • Includes several different types of loans

  8. Management with Cash Flows • Show a profit/loss for individual enterprises • Estimate expenses for each month • Help determine a production plan for the next year • Plan when to repay loans • Plan when loans are needed • Estimate the timing of purchases and capital sales

  9. Why is it important to keep accurate records? • It allows the owner / operator to look at a picture of each enterprise at any given moment in time. • It allows the owner / operator to track all income and expenses to make wise management decisions based on good financial insight. • It allows for financial documentation when needed by accountants, bankers, and lawyers.

  10. Why should you organize your records? • The ability to organize financial data into charts and spreadsheets allows the owner / operator to make sound financial decisions based on facts and figures. • When this data is transformed into a readable printout, any person involved with the operation can see where the strengths and weaknesses are located. • The ability to track the progress of an operation allows the owner / operator to take action to improve specific portions of the operation such as specific expenses or income.

More Related