Record-keeping, agribusiness and you
As a business owner, you’re busy working 25 hours a day on and in your business. The last thing you think about is – should I keep that receipt? Should I have asked for one? Do they have my email address – the right one – so I can get a copy? Or – a favourite – it’s ok, they know me, they’ll keep a copy for me.
Why all the receipt talk? Receipts are what we in the ‘biz call a ‘source document’ – the foundation of record-keeping and good accounting. And why are source documents and record-keeping important? Aren’t those things already listed on my bank statement? Well, yes, they are, but in a majority of cases the name of the retailer doesn’t always coincide with the name that appears on your bank statement, as, honestly, with everything going on in life, can you remember what you spent $589 on and where if the name on the statement doesn’t jog your memory (and Google doesn’t have the answer either).
“Receipts are what we in the ‘biz call a ‘source document’ – the foundation of record-keeping and good accounting”
The Infamous Shoebox of Receipts
As a business owner, you’re interested in the day to day – what is the market rate for tomatoes this week/I need to keep a tab on the weather in case the chicken sheds need to be closed/ is there enough water to irrigate my field/ do I have enough employees to ensure the fruits are packed for the transport on Sunday to market – the list is endless depending on your agribusiness. What you’re not going to worry about is if you kept the receipt for the repairs to the tractor and farm equipment, or the $5500 worth of new irrigation you bought (because it’s a capital item and you can write this off), or the extra truckload of hay you need for the cattle.
This is where a great accountant can help to streamline these issues to ensure all costs are captured at minimal cost to your business and sanity.
“Most businesses are online – invoices are emailed, there are apps that connect your invoices straight into your accounting system”
While some people still have shoeboxes full of receipts – don’t get me wrong, they’re fantastic without being too meticulous – the truth is they’re few and far between. Most businesses are online – invoices are emailed, some apps connect your invoices straight into your accounting system. The only issue here is remembering the email address with which to send the invoices once they hit your inbox (or, if you prefer, the vendor can email them straight to the app) or remembering to check your junk mail folder in case a stray invoice finds its way there amongst the Groupon and Lottoland emails – or is that just me?
Keep in mind that this is general information and should only serve as a guide. As such, it should not be taken as specific advice.
Managing your not-for-profit on a day to day can be exhausting – and that is taking into consideration
every other responsibility that does not encompass your financial record-keeping.
Written By: Stacey Giannopoulos
Having first-hand experience in the agricultural industry from her family’s orchard, Stacey understands how bookkeeping is the foundation of good accounting, and record-keeping is more than receipts in a shoebox handed off to someone in an office. As a professional accountant, she sees how agriculture is often neglected by the services industry and left behind when it comes to technology. Stacey believes in raising the profile of business in agriculture by focusing her skillset and expertise in utilising technology so farmers can do what they do best.
“Businesses regardless of size are always vulnerable without an accountant they can trust. “