Farm Accounting Made Easy

Farm Accounting Made Easy (FAME) is a four-part training series designed to teach accountants, of all skill levels, farm accounting. The modules are designed to be studied at your own pace and include self assessment exercises and projects. Each module also includes a selection of relevant articles from Farm Accounting NZ, a quarterly publication, as essential readings.

This series starts by introducing students to the basics of farm accounting, covering topics such as coding of farmer’s typical types of income and expenses. Later modules cover more complex farm accounting methods and tools, such as income equalisation deposits, fertiliser spreading, livestock valuation, and accounting for the sales and purchases of farms.

Modules can be completed in isolation, but for maximum benefit, we recommend you complete the whole series. For more information, phone 06 758 5273.

Module One

Transaction Processing – GST and Tax

An introduction to the basics of processing records for GSTs and Financial Statements. Intended to assist those who are preparing farm GSTs and Financial Statements.

Covers collecting data, presentation of annual accounts and a discussion of typical farming income and expense codes. Included with this module is a copy of Tandem Group’s Farm Expenses Coding Dictionary.

Module Two

Period End Adjustments and Financial Reporting

Explores the accrual and period/year end adjustments which are used to accurately report a farm’s income and complete the Statement of Financial Position.

Examines period/year end adjustments including depreciation, livestock tallies and some special aids developed legislatively to assist a farmer to level out fluctuating income between tax years, such as income spreading and equalisation deposits. Management and enterprise reporting are also examined.

Module Three

Livestock

We discuss in depth the part of farm accounting which is often viewed as the most difficult – accounting for livestock.

Provides an insight into the treatment of Specified, Non-Specified and High Priced Livestock. Bailments and Bloodstock are also discussed.

Module Four

Sundry Topics

Discusses accounting and tax issues that are unique to farming clients.

Topics covered include the capital/revenue distinction, development expenditure, sharemilking, wage issues, budgeting, and income tax and GST implications from the sale or purchase of a farm.