Agricultural accounting is a branch of general accounting responsible for the study of agricultural activities, livestock and the costs that are generated from these activities. Every agricultural sector must make use of the accounting, since this way it would be possible to obtain reliable, truthful and timely information that would be very useful at the time of decision making.
Agricultural accounting comprises a process and an entire context related to field activities, that is, it provides inputs, transforms them, obtains results and feeds through financial analysis, in search of new planning perspectives. On the other hand, agricultural activity is a subject of great importance within the national economy, since it is a determining factor for obtaining foreign currency and in turn generates sources of employment in the country.
Within the primary activities we can mention the livestock activity, which is responsible for the production of livestock, becoming a crucial sector in agricultural activities. As is well known, every company or company must have financial resources to start their activities, due to the generation of costs such as labor, machinery, work equipment, facilities and constructions, supplies, seeds, herbicides, fertilizers, insecticides. , public services, fuel and lubricants, among others, which are essential to reach a final product.
The production units must be managed objectively and systematically, this in order to make good use of all available resources, in order to obtain results that contribute to the development of the producer, increase their social responsibility and commitment to be at the service of agriculture and / or breeding.
Every owner at the time of starting a production process sets new goals, such as working in a comfortable environment, having the free will to make their own decisions at the time they deem necessary and of course cover all their needs. In addition to this, achieve high levels of production in the different functions to be performed. It should be noted that agricultural accounting is very useful for personnel working in production systems, since it provides accurate and detailed information in quantitative terms of the results obtained, which reflects the current situation of the production units, considering This information is relevant when making decisions.
Applying a suitable accounting system to the needs of the company allows us to determine both the financial situation as well as the productivity and efficiency of the business, in addition to recording all the transactions made by the economic entity, knowing the evolution of the business by means of the comparison of the results of other economic exercises, to classify costs and income, as well as to contribute with the formulation of new plans and budgets, necessary for future investments.
The agricultural accounting is dedicated to the application and use of the accounting technique in the exclusive economic entities of the agricultural branch. It is a powerful assistant in all types of companies, whether they are lucrative or not. It can also be considered as a useful instrument that explains the language of the businesses related to the field. Every agricultural sector should make use of the accounting, whatever the importance of its exploitation, since it would obtain a better understanding of the economic result and at the same time have a better knowledge to determine if it should continue in its current crop, diversify it, combine it or lease the land.
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