Setting up a chart of accounts in QuickBooks for farmers and other companies in the agriculture and ranching industry is easy if you base it off the products that they sell. Companies involved in agriculture or ranching usually deal with either growing produce such as fruits, vegetables, and grains, or they deal with raising livestock like cows, chickens, and turkeys.
Some accounts will carry over to all parts of the industry. For example, transporting food is very expensive, so all agricultural companies should have expense accounts for the following:
- Freight and Trucking,
- Gasoline, Fuel, and Oil
- Storage and Warehousing
Farmers should have an income account for program payments and for fuel and tax credits as well, as the US government will often offer relief for the companies that help feed the country.
Other accounts will vary depending on what kind of products the company sells and how the company does business. If you make money from farmers markets, you should create an income account for that. If you sell produce, you should have an income account for crop sales and expense accounts for seeds, plants, chemicals and other fertilizers that are required to grow your crops. If you raise livestock, you should have an income account for livestock sales and expense accounts for feed, veterinary and breeding expenses.
Where Can I Find More QuickBooks Help?
To learn about a chart of accounts for another industry, try our post on industry specific charts of accounts.
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