Computers are commonly used on the farm and are often used as tools for farm business records and for tax preparation. There are many software packages on the market with a wide range of complexity and capabilities. Which business software is right for you?
First consider what you want; it is important to track income, expenses, assets and liabilities. If you have part or full time employees, consider the software’s ability to track payroll, prepare and store tax documents, withholdings, and W2 forms at the end of the year. How will the software be able to help at tax time? The US Internal Revenue Service (IRS) provides guidance specifically for farmers, review of this document can help to select software that will track the right records. Many tax preparation software packages have the ability to import data directly from business software, making tax preparation much easier than sorting paper.
Next consider your abilities with computers. Someone who is new to computers is likely to become frustrated with complicated comprehensive business software and end up without any useful records. Review software packages online, look at customer ratings, many websites will rate software packages on their ease of use. Will the software synchronize with my smart phone? Synchronizing smartphone and desktop software applications all access to current financial information via smartphone and the ability to record a transaction almost immediately after the purchase. This can save time entering transactions later. Several land grant universities have online tutorials that can help in deciding which software best suits your abilities and farming operation.
- www.agecon.okstate.edu/quicken/
- ohioline.osu.edu/b911/index.html
- www.agecon.okstate.edu/quicken/Instructions.htm
- www.farmdoc.uiuc.edu/manage/quicken/quicken.html
No matter what software you select, you need to spend time test driving it. However, this is time well spent as using software to track your business provides a clear understanding of profits, losses, expenses, and current business status of the farm with just a few clicks of the mouse. Using well maintained business software with tax preparation software can make tax time easier and take less time.