Now is a great time to do a little spring cleaning of your financial records. You are likely either going through the data for your 2016 tax return, or have recently completed it, so all of the information should be fresh in your mind. What a perfect time to review those things that took a little longer to figure out and fine-tune your system to make it easier for next year. For example:
- Maybe it’s a change to your chart of accounts where you have similar accounts and you now realize they could be combined into one account.
o Did you know there is a function in most accounting software that will combine one or more accounts and all of the history?
- Maybe it’s providing more detail to your accountant, loan officer or other third party by breaking out certain accounts such as:
o Raised vs. purchased livestock
o Family living and personal allocations
o Allocate principal and interest
- Maybe it’s a matter of the way you enter your data.
o Enter quantities such as lbs., number of head
o Detail in capital assets changes
o Coop patronage retained