Creating and maintaining a balance sheet is essential for managing your farm's financial health. This step-by-step guide will show you how to complete your balance sheet using FarmRaise Tracks Accounting Software.
Step 1: Update Account Balances
THIS IS NOT AUTOMATICALLY UPDATED AS YOU ADD TRANSACTIONS
Log in to FarmRaise Tracks: Access your FarmRaise Tracks account using your username and password.
Navigate to Accounts: From the dashboard, click on the "Accounts" tab.
Update Balances: Enter the current balances for your checking, savings, and other financial accounts. Make sure all transactions are up-to-date.
Step 2: Update Assets
Assets are divided into three categories: current, intermediate, and long-term.
Current Assets
Go to Assets: Click on the "Assets" tab.
Update Current Assets: Enter the market value of your current assets, such as cash, accounts receivable, and inventory.
Example: Input the market price of harvested crops ready for sale.
Intermediate Assets
Update Intermediate Assets: Enter the value of assets that have a useful life of 1-10 years, such as machinery and equipment.
Market Price: Enter the current market price of these assets.
Depreciation: Use the straight-line method to calculate depreciation. Enter the annual depreciation amount.
Example: A tractor purchased for $50,000 with a useful life of 10 years would depreciate by $5,000 annually.
Long-Term Assets
Update Long-Term Assets: Enter the value of assets with a useful life of over 10 years, such as land and buildings.
Market Price: Enter the current market price of these assets.
Depreciation: Use the straight-line method for applicable assets (like buildings).
Example: A barn valued at $100,000 with a useful life of 20 years would depreciate by $5,000 annually.
Step 3: Update Liabilities
Liabilities are divided into current, intermediate, and long-term categories.
Current Liabilities
Go to Liabilities: Click on the "Liabilities" tab.
Update Current Liabilities: Enter the amounts owed within the next year, such as accounts payable and short-term loans.
Example: Input the amount due for a short-term equipment loan.
Intermediate Liabilities
Update Intermediate Liabilities: Enter the amounts owed for liabilities that are due in 1-7 years, such as intermediate-term loans.
Amount Owed: Enter the principal amount.
Interest Rate: Enter the interest rate for each liability.
Example: A 5-year loan for equipment with an outstanding balance of $30,000 at an interest rate of 5%.
Long-Term Liabilities
Update Long-Term Liabilities: Enter the amounts owed for liabilities due in more than 10 years, such as mortgages and long-term loans.
Amount Owed: Enter the principal amount.
Interest Rate: Enter the interest rate for each liability.
Example: A mortgage with a remaining balance of $200,000 at an interest rate of 4%.
Step 4: Generate and Download Your Balance Sheet
Navigate to Balance Sheet: Go to the "Reports" tab and select "Balance Sheet".
Generate Report: Ensure all entered data is correct, then click on "Generate Report".
Download Balance Sheet: Once the report is generated, you can download it or email it in your preferred format.
CSV: Click on the "Download as CSV" or "Email as CSV" button to get a spreadsheet format.
PDF: Click on the "Download as PDF" or "Email as PDF" button for a printable document.
By following these steps, you can accurately complete your balance sheet on FarmRaise Tracks Accounting Software. Regularly updating your balance sheet helps you maintain a clear picture of your farm's financial health, aiding in better decision-making and financial planning.
For further assistance, please visit our Help Center or contact our support team.