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Maintaining SAE Records

Maintaining SAE Records. Modified by Georgia Agricultural Education Curriculum Office July, 2002. Objectives. Define terminology and explain the Virginia SAE Recordbook Open and close out a record book Develop an SAE budget including an entrepreneurial enterprise

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Maintaining SAE Records

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  1. MaintainingSAERecords Modified by Georgia Agricultural Education Curriculum Office July, 2002

  2. Objectives • Define terminology and explain the Virginia SAE Recordbook • Open and close out a record book • Develop an SAE budget including an entrepreneurial enterprise • Develop expense and income statements • Develop and maintain inventory and depreciation schedules • Develop and maintain net worth statement • Develop and maintain other records

  3. Why Keep Records? • Income tax reporting • Social security tax reporting • Budgeting • Credit planning • Cash flow analysis • Management decisions • Applying for awards

  4. What Records Are Needed • Personal information, plans, & goals • Entrepreneurship agreement • Enterprise record • Goals • Plans • Practices • Budgets (not found in VA Recordbook)

  5. Records Needed (cont.) • Expenses • Income • Placement plans • Monthly work experiences and wages • Annual placement summary • Other income

  6. Records Needed (cont.) • Summary of SAE • Inventory • Net worth statement • Leadership activities • Awards • FFA • Other • Teacher SAE supervision

  7. Opening the Recordbook • Personal Information (pg 5) • Enterprise Programs (pg 5) • Farm production entrepreneurial enterprises • Non-farm entrepreneurial enterprises • Placement (pg 5) • Productive enterprise agreement (pg 6) • Farm production entrepreneurial enterprises • Non-farm entrepreneurial enterprises

  8. What is a budget? • A plan for how money will be made and spent • An estimate of inputs and capital needed • An estimate of production and income expected • An estimate of potential profit or loss

  9. Who uses budgets? • Governments • Agencies • Schools • Businesses • Farms • Families • Individuals • Entrepreneurs

  10. Where is budgeting information found? • Efficiency factor records • Records from previous years • Market reports • Input from others in the same business • Experts in the field • Cooperative Extension Service

  11. Developing a Budget (Expenses) • Forecast expense items required: • For fiscal year • Break down by month • Estimate cost of each anticipated expense item: • For fiscal year • Break down by month

  12. Developing a Budget (Income) • Forecast income items that will result: • For fiscal year • Break down by month • Estimate income from each income item: • For fiscal year • Break down by month

  13. Developing a Cash Flow Forecast • Record beginning cash status • Record anticipated expenses monthly • Record anticipated income monthly • Estimate net cash flow monthly • Estimate cash status monthly

  14. Recording Expense Items • Date • Item Description • Quantity and Unit • Unit Price • Cash Expense • Non-Cash Expense • Total Cost • Allocate among enterprises

  15. Recording Income Items • Date • Item Description • Quantity and Unit • Unit Price • Cash Income • Non-Cash Income • Total Income • Allocate among enterprises

  16. Maintaining Inventory Records • Real Property • Date Acquired • Purchase price OR actual value on date acquired • Value today • Capital Equipment • Date Acquired • Purchase price OR actual value on date acquired • Value today

  17. Special Inventory for Ag Production SAE • Breeding livestock • Date Acquired • Purchase price OR actual value on date acquired • Value today • Crops in storage, value today • Production supplies on hand, purchase cost • Machinery & equipment • Date Acquired • Purchase price OR actual value on date acquired • Value today

  18. Special Inventory for Ag Bus Entrepreneurship SAE • Machinery & equipment • Date Acquired • Purchase price OR actual value on date acquired • Value today • Product on hand for sale, retail value • Production supplies on hand, actual cost

  19. Maintaining Depreciation Schedules • Date Acquired • Purchase price, actual value on date acquired, or basis cost • Previous depreciation • Value today of: • Buildings • Equipment • Breeding livestock

  20. Income Analysis • Expenses • Cash expenses • Non-cash expenses • Depreciation • Income • Cash receipts • Non-cash receipts • Income – Expenses = Net Income • Net Income * share = Student Net Income (SNL) • SNI / Hours Self Labor = Income per Hour (IPH) • IPH – Min Wage = Profit (Loss) per Hour for Enterprise

  21. Building a Net Worth Statement • Assets • Cash in checking • Cash in savings • Cash value of insurance • Value of stocks, bonds • Accounts receivable • Value of real property • Value of business inventory • Value of personal property

  22. Net Worth Statement (cont) • Liabilities • Loans • Mortgages • Credit card balances • Other unpaid bills

  23. Net Worth Statement (cont) • Assets – Liabilities = Net Worth • Net Worth Dec 31 – Net Worth Jan 1 = Net Gain (or loss) in Net Worth

  24. What records are necessary? • Preliminary Materials • Budgets • Cash Flow • Depreciation • Inventory • Income • Expense • Income Analysis • Placement Records • Net Worth

  25. Seems Like a Lot, BUT… Records are necessary to: • Make decisions • Pay only appropriate taxes • Operate a profitable business • Determine profit or loss • Stay out of jail

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