QUICKEN AS A FARM ACCOUNTING SYSTEM: A LESSON PLAN ON CASH BASIS RECORDKEEPING WITH ACCRUAL-ADJUSTED FINANCIAL STATEMENTS

The purpose of this document is to demonstrate how Quicken, a popular checkbook management software program, can be used to keep a set of records for the farm business that will measure profits, liquidity, and solvency. This is a revision of ERI 95-02, with more detailed explanations. All graphics have been eliminated and fonts have been changed so this document can be printed on most printers. It is based on an example farm used in the Business Management in Agriculture (BMA) series of videos and workbooks developed in the late 1980s, and draws on materials prepared by Dr. Ken Stokes of Texas A&M University.It will best be understood if used as a study guide, and that entries actually be made in Quicken as they are encountered in the guide, and following the instructions given in Appendix A. By the time you complete this exercise, you will have a much better idea how to keep records on your farm, and how useful the reports will be in managing your farm or ranch operation.Appendix A contains instructions for those who received a disk with files already set up. If you did not receive a disk, consider yourself lucky. You will probably learn more just from having to go through the steps of setting up the accounts and categories.This is not intended to be an introductory course in either recordkeeping or Quicken. It requires some previous training in Quicken. Those with a basic understanding of accounting principles will find it easier to understand and will have less trouble making entries for their own business. Yet, almost anyone with a desire and diligence can master the concepts and implement the system for their business.