The Use of Accounting Information in Cattle Ranch Management: An Empirical Study

The beef-cattle segment of the livestock industry occupies a very important position in the Brazilian economy. As in any other business venture, management in this segment requires reliable information as the basis for making decisions. This work examines how accountancy can assist cattle ranchers in managing their activities. In order to introduce the reader to the subject, the article explains some of the basic concepts of the cattle business and some peculiarities of this market. Then some accounting concepts are discussed, focusing on their application to cattle raising, and a survey is presented conducted among accounting firms in the state of Mato Grosso do Sul, to understand how cattle ranchers use accountancy as a management tool. It concludes with some general remarks on the importance of accounting information and controls to running a modern agribusiness in general.