Good accounting records are at the very foundation of a good risk management program. Most agricultural producers continue to utilize cash record keeping as allowed by the IRS. However, these records never accurately reflect the financial stability of an operation. Risk management decisions must be made based on accurate information. Managerial accounting adjusts cash records through accrual adjustments and fully absorbs all costs including overhead, depreciation and management labor. These adjustments and additions can be easily be made in QuickBooks, a relatively-inexpensive commercial accounting package. However conversion to a managerial system using QuickBooks could be met with resistance. To combat this, a rigid framework has been developed and utilized in Texas educational programs.
Members of the Extension Agricultural Economics Unit of the Texas Cooperative Extension have developed many tools including teaching materials and multi-media to make the conversion as easy as possible for producers. The multi-media tools include computerized video streaming of lessons on using QuickBooks and developing the managerial accounting system. These computer files and the teaching manuals can be distributed on compact disks or DVDs. The purpose of this poster is to demonstrate these tools.
|Conference||2005 National Extension Risk Management Education Conference|