As far as I know, Stock Fencing is seen as an assett. But how do you record this? it is not like a tractor, you buy differant things, like fence post, stock fence, gates nails, etc. Do you mark all asthge assett?
Unfortunately, you will have to seek paid pro advice on this as farming is a specialist area and also question has nothing to do with QF software as such
If I use QF the question is relevant.
There are a lot of farmers using QuickFile
If you mean by stock fencing, fences that you put up to keep animals in, like a pen, then just record the cost as an asset.
Keep a record of the cost of the fence posts, fences, gates, etc and you record the total cost as an asset.
QF has a projects tag which you might be able to use to collect the costs, but I haven’t used it.
You could record the costs into code 0020 Plant and Machinery or 0040 Furniture and Fixtures - whichever one you choose, just stick to the same one in the future.
Then, you just depreciate the cost away as the asset is used up (or worn out).
There are some accounting rules that deal specifically with farming, they refer to what are called biological (living) assets which then become agricultural products (a cow becoming a beefburger for example), but I don’t think this was the type of thing you are asking about.
Hope this helps
Thank you very much for the information and it is what I did in the end.
I am not an accountant or bookkeeper but I do my own accounts.
So I am interested in the second part of your statement re, biological (living) assets that becomes agricultural products. I farm with pigs and goats.
It woulod be great if you can give me some more info or direct me to where I can read more on the accounting rules relating to this.
I’m glad to have helped a bit
The accounting treatment of biological assets is covered by an international standard called IAS 41 Agriculture, and what this standard does is: (Headache warning!!!)
prescribes the accounting treatment, financial statement presentation, and disclosures related to agricultural activity. Agricultural activity is the management of the biological transformation of biological assets (living animals or plants) and harvest of biological assets for sale or for conversion into agricultural produce or into additional biological assets.
You can read more about the standard at this link.
It’s heavy going stuff and if you are not used to accounting terminology it might be a bit offputting.
I did a search to see if I could find a book to recommend to you, I found one book on Amazon but I think it’s old now and written for the USA. That book is here.
I found one other link, written by PWC but that is even older, it was written in 2009. That link is here It is a bit of an easier read and gives a nice explanation of the standard.
It’s a shame if there isn’t such a thing as an easy guide to accounting for farmers, maybe there is one out there somewhere? Perhaps your local Chambers of Commerce might know of one? Or even have a training course?
Hope I’ve been able to point you in a useful direction!
Thank you very much, you have done more than enough. I will read all you have recomended.
Can’t thank you enough.
The accounting standard you use and the guidance on treatment of various items in your accounts will also depend on whether you are a sole trader, partnership or limited company. There are some guides to farming accounts published by DEFRA which you may find useful - I have included links to below:
Many thanks for the info.
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