LIVESTOCK TRACKING For taxes it’s a little tricky in tracking income & expense if you have more than one type of livestock and whether or not your livestock is purchased or raised. You can experiment with different tracking systems to see what works best for your operation. A few methods below can be used or changed to work for you. Raised Livestock is very straight forward, you have categories for your expenses, and one for hogs or cattle sold. You will also need a category for breeding stock purchased since this is an asset and needs to be depreciated. When you sell breeding livestock, this can also have a separate category to deduct from your depreciation schedule if it has not been fully depreciated, as well as to get this amount out of your assets if you are tracking livestock inventory. Purchased Livestock is different in the fact that it is the year of the sale that you will account for the purchase price of the cattle or hogs (which could have been in a previous year). One way to track Purchased Cattle Inventory (this is the method I recommend for most producers) is to use a separate account for cattle inventory, and a separate account for breeding stock as well. You will be using an account instead of a category for purchasing cattle and putting it into inventory. Step 1: Set up an asset account called “Cattle Inventory”, beginning balance of zero (you may also delete the opening balance entry, when opening this account) Step 2: Purchasing cattle- Enter it as a check using [Cattle Inventory] in the category field (This puts it in the cattle inventory account. Put the Lot number or any tracking number as the class. This will allow you to track this group to find the purchase price when you sell them. Use the memo field for number of head, $/hd etc. Step 3: Selling cattle- Enter it as a deposit, put the exact amount of the check in the deposit column. Put the lot number in the memo for quick reference. Open the split window. Split #1: ‘Cattle Sales/Lot’ as the category, in the memo put number of head, $/cwt etc, the amount of the check in the amount column. Split #2: ‘Cost of Cattle Sold/Lot’ as the category, #hd, $/hd purchased in the memo. In the amount column enter the number of head times the purchase price per head as a negative number. If you have sold the whole group, this will be the full purchase price of the group. If you sell part of the group, you can enter just the number of head sold times the purchase price per head in the amount column as a negative number. On the last group to sell for this lot number, enter the remaining amount of purchase price for this lot which will also account for any deads. Split #3: ‘Cattle Inventory/Lot’ as the category, #hd, $/hd purchased in the memo column, and the exact amount you entered in split #2 as a positive number. Split #2 & #3 should offset each other, you are taking the cattle out of the Cattle Inventory account and putting it toward Cost of Cattle Sold, this way you are getting the purchase price in the same year as the sale since you are removing it from inventory to cost of cattle sold the same day as you sell them. This is necessary for taxes. The following report is set up to list all the current cattle inventory transactions from the Cattle Inventory Account. The key to making this report work, is to put an ‘R’ in the clr column of the purchase transaction and the sales transaction of all cattle that has been sold. Then set the report from the advanced tab in the customize window to read only the blank transactions, this will be your current inventory. You can call this report up any time you need a current print out, so use the memo field for data that is pertinent to your operation. Be sure to include all dates, the report will be filtered by the clr column, the report is set to read only the blank transactions, and you will have put an ‘R’ in the clr column of all sold cattle. Also, be sure in the customize window under the accounts tab that you only have the Cattle Inventory Account selected for this report. The following is a report of all transactions pertaining to one lot number (Lot 2830). The Cattle sales, and Cost of Cattle sold are the income & expense items which are the taxable transactions, the transfers show purchasing the cattle and putting them into cattle inventory, then removing them once the cattle had been sold, so the transfers should always equal zero. The bottom total will be the profit or loss (excluding feed, vet etc), you can allocate your feed, yardage, and vet to classes if you know or track these numbers by groups. Keep these reports memorized and put them on a button bar for quick reference. When using the Cattle Lot Report, you will need to go into the customize window and go to the include tab and put the lot number you are looking for in the Class field under the matching section. Also when first setting up this report, in the customize window set the date to read all dates, give the report a name, and in the account tab click on the checking account only, not the cattle inventory account. Example of a group of pigs production numbers. Feed totals figured using Quickbooks set up to track feed totals per group. Harvest Logs Grain Storage Locations Grain Total Inventories Sample: Tracking Grain Inventory on Spreadsheet Sample Cash Rent Contract: (Set up on Word, Save template to reuse) th This Agreement, Made and entered into this 11 day of January 2010. By and between ( Stanley &/or Betty Smith )Party of the first part, and ( Tom &/or Wilma Brown )Party of the second part, WITNESSETH, That the said party of the first part has this day leased unto the party of the second part the following described property, situated in the County of Colfax and State of Nebraska to wit: 76 Acres SW ¼ NW ¼ & NW ¼ SW ¼ Section 24 Township 14 Range 3E st Together with the buildings and improvements thereon and thereto appertaining from the 1 day of March, 2010 and will st continue in force until 1 day of March, 2012, and the said second party, in consideration of the leasing of the above premises, hereby covenants and agrees with the said party of the first part to pay the said party of the first part as rent for the same as follows, to-wit: Cash Rent $170 per acre x 76 crop acres = $12920 To be paid: st $6460.00 (½) by March 1 of current crop year st $6460.00 (½) by September 1 of current crop year AND IT IS FURTHER EXPRESSLY AGREED between the parties hereto that the said party of the first part should he deem it necessary may at the cost and expense of the party of the second part, employ men and equipment to go upon said premises and cultivate the crops and harvest them or to do anything that is necessary to promote their growth or save them at any time before they are in the granaries, the whole expense of the same to be a lien upon said second party’s share of said crops. AND IT IS FURTHER EXPRESSLY AGREED by the party of the second part the he will carefully protect all buildings, fences and improvements of every kind that are now on said premises or that may be erected thereon during the continuance of this lease; that he will promptly at the expiration of the term herein granted yield up possession of said premises, without notice, unto the party of the first part, in as good repair as they now are or may be at any time during the continuance of this lease, ordinary wear and loss by fire excepted. Said second party also expressly agrees to keep the cultivated lands of said premises free from weeds and destroy all weeds along the fences and about all the buildings, including all cockleburs and weeds on the highway adjoining the land and along the borders of the fields before they ripen their seeds; that he will keep the well, pump and windmill on said premises in good repair, exceptional loss by heavy wind or fire excepted. AND IT IS FURTHER AGREED by the party of the second part that he will not sub-let nor in any manner release any part of the described premises without the consent of the party of the first part. AND IT IS FURTHER AGREED that the party of the first part and his agents may go upon said premises at any time to inspect the same or to make improvements thereon and to plow for future crops and to sow small grain in corn and stubble ground in the fall before the expiration of the lease. The covenants herein shall extend to and be binding upon the heirs, executors and administrators of the parties to this lease. AND IT IS FURTHER EXPRESSLY AGREED that the second party shall secure the performance of the terms and conditions of the lease on his part by giving to the first party on demand a security interest upon all or any part of the crops growing or gathered on said premises during said term. And if said second party shall neglect or refuse to give such security interest upon demand, or if he shall at any time give or attempt to give to, or permit any person or persons to obtain a lien upon said crops or any part thereof, or violate any of the conditions of the contract, then this lease shall thereby terminate at the option of the first party, and in order to enforce a forfeiture for non-payment of rent it shall not be necessary to make a demand on the same day the rent shall become due, and the said first party may at once recover possession of the said premises and all crops thereon and the said second party shall in that event be held and considered to have planted and cultivated said crop for the benefit of said first party and shall be paid for such services as follows: First party may sell said crop and the un-expired term for cash at private sale he may at his option procure said crops to be further cultivated or gathered and sold in such market as he may see fit, and in either event the proceeds thereof shall be applied: First, to the payment of expenses incurred by the said party in the premises including the time spent by him in connection therewith; Second, in payment of rent and any other lawful charges due first party; Third, the remainder, if any, shall be paid to the second party in full satisfaction for services in planting and tending said crops, any seeds furnished by him, or any other sums due him hereunder. Signed this__________________ day of __________________________, 20________ ____________________________________ _________________________________ Owner Tenant Computer Maintenance & Protection Upgrading Windows: Start – Control Panel – Windows Update (Turn on automatic updates to keep your computer current) Newest Windows Version: Windows 7 Virus Protection: Run Live Updates regularly before checking for viruses. Turn on automatic virus scans. Norton System Works & Norton Antivirus & McAfee Free Antivirus: Panda Active Scan: www.pandasoftware.com/home/default.asp Free Antivirus: House Call: www.trendmicro.com/en/home/us/personal.htm Free Antivirus: AVG www.free.grisoft.com Firewall Protection: Blocks TCPs (Transmission Control Protocol), packets of data are sent from one computer to another. ZoneAlarm: Advanced firewall protection Within your computer: Control Panel – Security, be sure Firewall is turned on Spyware & Adware: Software that transmits personally identifiable info from your computer, from software, downloads, e-mail attachments. Tracks your surfing behavior & sells to advertising companies. Spybot Search & Destroy Free at www.safer-networking.org Ad-aware Free at www.lavasoft.com Scan Disk: Tidy up the hard drive and close off any bad sectors. Run about 1x per month, or when computer is shut down improperly Start – Programs – Assessories – System Tools – Scan Disk Disk Defragmenter: Puts the pieces of files in contiguous clusters so the computer can work faster. 1x per month. Start – Programs – Assessories – System Tools – Disk Defragmenter Temp Folders: Delete contents about 1x per month. Saves web sites and open files for quicker opening on future uses. My Computer – C: drive – Windows – Temp & Temp Internet Files (Select all and delete) Remove Unused software: Control Panel – Add & Remove Software Organize Your Files: Right click desktop, select new – folder. Make several folders to separate all your files in areas such as you would in a file cabinet. Drag & Drop files into these folders, or in Windows XP you can open any folder and move files by clicking on “Move File” in the left window. When saving your work, you can always tell the file where to go, in the “Save In” window, select the folder that you want this file stored in, otherwise the file will by default go to the “My Documents” folder. Reliable Backups: Mini USB flash drives “Pen Drives” - plugs into USB port, works like hard drive, you can use drag & drop or regular saving technique on these drives, probably most dependable, very portable and easiest to use. Floppies hold 1.44 MB data, CD’s can hold 700 MB, and pen drives 64 MB up to several GB’s. Memory: 1024 bytes = 1 KB ~ 1024 KB = 1 MB ~ 1024 MB = 1 GB ~ 1024 GB = 1 TB Checking Computer Hard Disk Space: My Computer – Rt Click C: drive – Properties Free space = 52,583,497,728 bytes (52 GB) (52,000 MB) (52,000,000 KB) Examples of size: One ave song = 3 MB One ave picture = 2 MB One Quicken File 1-15 MB Checking RAM: Short term memory for maintaining open programs: Start – control panel – system, shows operating system, updates, processor, RAM (128 MB -4 GB & growing) the more the better and faster performance. Keep Current with Computer Protection: www.komando.com (daily e-mail tips and daily cool web sites) OFFICE ORGANIZATION Work Area An office is recommended to keep all business papers separate from magazines, kids homework etc. A desk with a lot of room to spread papers, shelves for letter trays, and cupboards to keep supplies put away. Your computer should be assessable, but to the side or underneath out of the way, and the monitor can be to the side or on a side table to keep the area in front of you clear for writing. Filing Systems File cabinets are best, one drawer for current year and another for the previous year if needed. Every year clean out the files and put old years in boxes labeled with the year. If you need information from a previous year, it most likely is on the computer. Hanging files are much neater and easier to use. I like to group my files by color, for example all the crop papers are in yellow hanging folders, the hogs are all in red folders etc. Vendors can each have their own, or share one large folder, unless you have one or two main vendors such as Coop, they may need their own files. Family files are in a separate drawer, or file cabinet, this does not need to be cleaned out each year, just as needed. Letter Trays A letter tray for each enterprise is recommended, this can hold such things as un-entered data, Tracking sheets, crop reference sheets, inventories, crop receipts etc. If you have cattle, crops, and hogs, you would need three trays. I also like a second set of trays for non-farm papers, such as kids papers, organizations you are involved in, and other family items needing attention. Every now and then you need to go through these trays and clean them out or file them away. Posted Lists This is one of my favorite office organization tips, the three main lists I like people to create and keep posted for quick reference are Bill Minders, Phone Lists, and Special Dates. The bill minder is a list of all the bills coming due throughout the year, grouped by month and by day. This should be for all bills such as loan payments, land rent, electricity, phone, Coop and even an estimated bill for pre-booked items. Most of these payments can be based on the previous years cash flow statements, and adjust them accordingly. Print out a list of commonly used phone numbers and post by each phone for quick reference, keep this list on your computer to edit it often to keep it up to date. Another quick reference I like to use is a print out of all my family’s important dates such as birthdays and anniversaries put on a spreadsheet in order by dates split by the month. This list can be plain, or experiment with fancy borders and colors. Reminders The good ‘ole sticky notes! Yes, they are my favorite. I use these to jot down a quick reminder and post it on the side of my desk. This helps free up my mind to concentrate on the current project. Things such as phone calls to return, bills to check on, schedule changes, questions to ask my husband, or just as a to do list. When I get a minute, I like to get them all handled and thrown away, it helps me feel caught up and I feel good not trying to remember what I forgot to do. Another way to accomplish this is a log book, for phone calls or just as a to do list. You can check off entries when they’re done, but I personally like throwing them away. Bills Keep one single spot on your desk for unpaid bills, and a second for pending items that need attention in the near future. Keep these handy to remind you to check them often to avoid late payments. Financial Notebook Three ring notebook with tabs for the years. Each year put in the pertinent data about your operation for quick reference and part of your history. Reports such as Income Tax statement, Balance sheet, Income/Expense reports, Cash Flow, Budget reports, Crop production totals, livestock income/expenses, Livestock production reports, farm maps, Inventory account printouts. Anything you feel is a summary of what your operation accomplished in that year. Disaster Plan Nobody likes to think about catastrophes happening to them, but it’s good to be prepared if something would happen. It gives everyone a peace of mind that all your wishes will be known and someone will be able to take over your records or at least know where everything is. It is as simple as having a folder in your file cabinet labeled Catastrophe or Disaster. This folder can hold a copy of your will, as well as a copy of your Catastrophe Plan. This plan should have all your assets and values, as well as their locations or at least the title locations. It should also include all your financial accounts, banks names and numbers, credit card accounts and numbers, insurance policies with agents names and numbers as well as where they are filed. Include important papers and their locations such as medical records, employment records, birth and marriage certificates. Another good idea is to include everyone in the household along with their dates of birth, social security numbers, and driver’s license. Update this plan at least every year, or when big changes are made, and write the date it was updated. Also be sure to include any special wishes you may have, such as who gets what items from you when you are gone, or what songs you want at your funeral, anything at all. Be sure to let someone outside the family know where this plan is kept, or give them an updated copy in a sealed envelope every year marked “Not to open until I’m gone”. The following four pages are templates you can copy to fill out and share copies with other family members. PEG’s FAVORITE WEBSITES: WEBSITE CONTENT http://earth.google.com 3D Maps http://cuteoverload.com Animal Pictures & Stories www.talk.newagtalk.com Chat with other Ag people www.kgbifm.com Christian Radio (listen live) www.fontspace.com Cool Fonts www.trimback.com Coupons & Online Codes www.agecon.unl.edu/resource/farmcalc.html Crops Spreadsheet www.greenshot.com Download - Print Screen www.primopdf.com Download to make pdf’s www.switchboard.com Find Businesses & People www.whitepages.com Find Businesses & People www.firstpersontetris.com Game www.spelunkyworld.com Game http://balldroppings.com Game www.officelabs.com/projects/ribbonhero Game to learn Word, Excel, Power Point www.kticam.com/markets Grains & Livestock Markets www.myplantid.com Identify different plants www.idthis.org Identify different things www.dodgemfg.com Livestock Equipment www.lyricsmania.com Lyrics to any song www.calendarhome.com Make your own calendar www.fsa.usda.gov Nat’l FSA – Links to local FSA www.zebrakeys.com Online Piano Lessons www.visual.merriam-webster.com Picture Dictionary www.perennial.com Plants www.backyardgardener.com Plants www.davesgarden.com Plants http://plants.usda.gov Plants www.finegardening.com Plants http://pat.nol.org Property Values by County www.jspuzzles.com Puzzles online www.aolradio.com Radio – Pick your favorite type of music www.cooks.com Recipes www.allrecipes.com Recipes www.cookstr.com Recipes http://joyofbaking.com Recipes www.runpee.com Time in movies to take ‘pee’ break www.teuxdeux.com To Do Lists www.youtube.com Videos of EVERYTHING!! www.weather.com Weather www.intellicast.com Weather – (go to 1KM radar) Peg’s Email: firstname.lastname@example.org Find Me on Facebook!
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