Farming can be a profitable and sustainable business, but keeping accurate financial records is essential if you’re going to survive financially.
That’s why many farmers use farm accounting software to track their expenses, income, inventory, and other financial data.
What should you look for? Here are five must-have features:
1. What’s it compatible with? Farm accounting differs from “regular” accounting because of its unique depreciation and valuation methods – something to remember before buying anything.
2. Crop and inventory management: Your software should include tools to track inventory levels, crop yields, and other critical data.
3. Customizable reports: Your software should be able to produce customized reports, as they’re essential for analyzing (and making sense of) the mountain of financial data you’ve collected.
4. Integration with other systems: Ideally, your software should integrate with your bank accounts, tax software, etc., which saves time and reduces the risk of data entry errors (in other words, human errors). Integration should be seamless, too.
5. User-friendly: This goes hand-in-hand with integration. Simply put, your software should be relatively easy to use and understand, regardless of your general comfort level with accounting and software. A confusing interface (what you see on your screen) makes it challenging to navigate and makes it easy to make mistakes.
6. Compatible with industry standards: The software should be compatible with industry-specific depreciation and valuation methods.
7. Automated data entry: This is another way to reduce or eliminate errors.
8. Data security: The software should have security measures to protect your financial data from cyber threats.
9. Mobile access: As farming requires a lot of time in the field, the software should have a mobile app that allows you to manage your finances while on-the-go.
Farmers used to rely on animals to plow fields and pull carts instead of tractors, but today’s technology has eliminated the need for “traditional” and more outdated methods. And the same can be said for their finances. You no longer have to pour over what’s often confusing and complex accounting as it relates to your farm. You just need to find the right software.