Unit 2

1. Unit 2 Record Keeping

2. What makes a successful agribusiness? • Dedication • Knowledge • Money = PROPER FINANCIAL MANAGEMENT Jupiter Images

3. Record Keeping • SAE projects help with record keeping skills • Important to keep good records for three reasons: • Management • Obtain credit or loans • Cash flow of SAE Jupiter Images

4. Types of SAEs • Exploratory • Shadowing a Vet, feed mill operator or loan officer • Research • Select an area to research and determine the outcome • Placement • Student works for someone

5. Types of SAEs • Entrepreneurship • Student owns their own business • Ex: produce and market livestock or crops; lawn care business • MOST common SAE = Entrepreneurship!

6. What is an enterprise? • Enterprise • One total part of the program • Must keep each enterprise separate Jupiter Images

7. Inventory • Beginning • Itemized list of all assets at the start of record keeping period • Ending • Itemized list of all assets at the end of record keeping period

8. Valuation of assets • Depreciation • Buildings, fences and machinery decline in value over time • Use the cost minus depreciation value to figure out total value Draft, Pleasure, or Breeding Livestock • List livestock that have reached their maturity value at their book value Machinery, Equipment, and Fixtures • List at their remaining book value Land Improvements, Buildings • List improvements such as tilling, buildings, and fences at their remaining book value Jupiter Images

9. Inventory Assets • Livestock • Price per pound, hundred weight or head • Stored Crops • Price per bushel, ton, bale or pound • Growing Assets • Cost invested per acre, flat, individual plant or individual animal • Other Assets • Price per hundred weight, ton, gallon, bag, item or acre Jupiter Images

10. Record Keeping Transactions • Transaction • Any exchange of money • Expense • Transactions where any money is spent • Income • Money is gained

11. Types of Transactions • Sales and Income Transactions • Revenue derived from SAE • Expense Transactions • Cost of goods and services involved with SAE • Exchange Labor Transactions • Exchange of labor for money or use of equipment Jupiter Images

12. Types of Transactions • Non-SAE Income Transactions • Divided into four areas: • Agricultural Earnings Not Related to the SAE • Earnings and Income from Non-Agricultural Activities • Gifts of SAE Assets • Gifts and Income Other Than Earnings • Land Transactions • Any land being used and all expenses must be recorded

13. Closing Records • Balance Sheet • List of all assets and liabilities • Use this to determine the owners equity or net worth.