Suggested Chart of Accounts For Computer Accounting and What Should Be in Each Account

Dairy July 06, 2012|Print

Items under account titles are suggested sub categories.

ACCOUNT TITLE

ITEMS TO BE INCLUDED

Income

Ag Program Payments FSA Payments, Cost Sharing, Etc
 
Calf Sales Sale of Bull & Heifer Calves1
*In memo field include number of calves sold each transaction.1
Capital Sales Capital Assets Sold
Real Estate Gravel, Lumber, Land
Machinery Machinery & Equipment
Co-op Equity Equity redeemed for cash
 
Cull Cows Cull Cow Sales1
Purchased Animals Sold  
Home Grown Animals Sold  
*In memo field include number of animals for each transaction.
 
Crop Sales Sales of Farm Crops, Grains, Forages, etc.
 
Custom Machine Work Custom Machine Work
 
Refunds All Refunds
Workman's Comp Workman's Compensation Refund
Gas Tax Refunds State & Federal Gas Tax Refunds
 
Milk Sold Milk - Gross sales or sum of all the subcategories
Butterfat* Butterfat, total amount
Protein* Protein, total amount
Other Solids* Other solids, total amount
Producer Price Differential (PPD) PPD, total amount
Quality Quality, total amount
Volume Volume, total amount
Compact payment Total compact payment
Patronage dividend Earnings paid to the farm from the milk co-op, cas and non-cash
Other Other milk payments, total amount
*If your accounting system allows, also record the pounds of the three different components along with the total pounds of milk for the pay period. If your accounting system doesn't allow units to be kept within the system, please keep these amounts in some other manner so that they can be totaled at the end of the year.
 
Non-Farm Income Non-Farm Income, Spouse's Job
 
Other Farm Income Var. other farm income
Custom Work Income for Custom work
Insurance income Insurance Receipts
Misc. Farm income Maple Syrup Sales, Director Fees, Gas & Oil Royalties
Patronage Refunds Patronage refunds from Co-ops, not including milk patronage
 

Expenses

Auto/Truck Farm Auto/Truck Repair, Fuel, Insurance Expenses
 
Breeding Costs Breeding Fees & Supplies
Breeding fees Breeding Fees
Breeding supplies Semen & Supplies
 
Capital Purchases Capital Purchases
Dairy Cattle Dairy Cows Bought1
Machinery-Equipment Machinery & Equipment
Land-Buildings Land & Building Improvement
Co-op Equity Equity purchase
 
Crop Expenses Total Crop Expenses
Spray & Chemicals Spray & Chemicals
Fertilizer & Lime Fertilizer & Lime
Seeds & plants Seeds & Plants
Other Soil Testing, Crop Consulting
*May also break crop categories between crops, i.e. hay & corn
 
Custom Machinery Hire Machinery rent & hire, tillage hire, back hoe work, combining, chopping
 
Family Expenses All Family Expenses
Insurance-Health Family Health Insurance
Insurance-Life Family Life Insurance
Household Family Household Expenses
Utilities Family portion of utility expenses
 
Feeds Purchased Feeds Purchased
Dairy Grain Dairy Grain & Conc. for all animals, minerals, and silage inoculants
Forages Hay & silage bought
Minerals Purchased minerals
Feed Consulting Consulting Fee for Nutritionist
Non-Dairy Feed Non-Dairy Feed
*May split purchases between commodity and/or milk cow/dry cow/heifer.
 
Freight & Truck Freight & trucking for livestock
 
Gas, Fuel, Oil Gas, fuel, & oil, grease for non-milking equipment
 
Insurance Farm Insurance, fire, liability
 
Interest Total Interest
Interest-Capital Bank & Farm Credit Interest
Interest-other Interest Expenses on Open Accounts
*May record interest by each lender/vendor.
 
Labor Expenses Total Labor Expenses
Gross Wages-Employees Expenses from payroll
FICA Company share FICA
Education & Training Employee Training Costs
Workman's Comp Workers Comp Ins
Health Insurance Employee Health Insurance expenses
Unemployment Insurance Unemployment Insurance
Benefits Other Labor Costs, Housing, Fuel, Car, Uniforms, etc.
 
Lease Payments Total Lease Payments
Building Lease Payments for Buildings
Machinery Lease Payments for Equipment
*May record lease payment by vendor.
 
Miscellaneous Expenses All Other Expenses
Management Consulting Business Consulting Fees
Legal Legal Fees
Accounting Accountant Fees, Tax Planning
Education & Training, Owner Meetings & Conferences
Travel Travel Costs for Owner
Publications Trade Journals & Newsletters
Office Supplies Computer & Paper Supplies
Disposal Garbage Disposal Costs
Maple Production Expenses Maple Syrup Supplies
Clothing Work Cloths & Boats
 
Milk Marketing Exp Milk Marketing Expenses
ADA Milk promotion fee
CCC Assessment CCC Assessment on milk
Co-op Dues Milk Co-op dues
Hauling Milk Hauling
Commission Future market expenses/net
 
Milking Supplies Milking supplies, towels, dips, soaps, acids, vacuum pump oil, things that are used daily
 
Other Livestock Expenses Other Livestock Expenses
bST bST Expenses
DHIA Milk production records exp
Bedding Purchased bedding expenses
Dairy Supplies Dairy supplies, ear tags, boots, non-vet items
Heifer boarding Heifer Boarding Exp
Registration Costs Registration papers for breed associations
 
Principal Paid Principal paid on all loans
*Most computer accounting software has liability accounts that track loan payments and is the preferred method to keep track of loan balances. If your software has this feature, then this category is not needed. If not, please use this to track how much in principal you have paid to all lenders by lender.
 
Rent Total Rent Expenses
Land Rent Rent for Land
Building Rent Rent for Buildings
 
Repairs Repairs & Maintenance
Building Land & Building Repairs, Ag bags, plastic for covering silos
Machinery Repairs-machinery & equipment
Parlor Milking parlor maintenance, hoses, preventive maintenance, all repairs, things that last longer than a year
Shop Supplies Bolts, welding rods, etc.
*Can tag individual equipment if desired.
 
Taxes Farm Taxes, School & Property
 
Utilities Total Utilities
Telephone Farm Telephone
Electric Farm Electric Expense
Water  
Gas  
 
Vet & Med Vet & Medicine
Vet Service Vet Services, stop charges, hourly fees, routine fees
Vet Consulting Vet Consulting, not routine vet work
Medicine Medicine Expenses & supplies
Hoof Trimming Hoof Trimming Expense
This list is a minimum list of accounts to have for management reasons and will meet most of the needs for analysis, IRS, and banking. If you want to keep some other information, or a different breakout, please add more categories. It is easier to add categories back together at the end of the year than it is to break out different items from a single category.
1If your accounting software has a feature to keep track of units, please use that feature. Otherwise please place in the memo field the amount for pounds of components and milk sold, calves sold, cows sold, and animals purchased because these numbers are used at the end of the year for analysis purposes.

Author

Jason Karszes, Farm Management Specialist
PRO-DAIRY
Department of Agricultural, Resource, and Managerial Economics
Cornell University