January 15, 2018 - by Mark Wilsdorf
This was originally released as a standalone article, but the topic needed a bit more information, so it has been re-released as Part I of a two-part series. Part II shows the effect of using farm inventory Items for entering sales in QuickBooks..
Most farming and ranching operations in the U.S. use cash accounting, and the majority prepare market-value balance sheets. One of the big hurdles these farm businesses face in using QuickBooks, is how to get inventories of things the farm or ranch produces into QuickBooks, and how to assign a value to them for preparing balance sheet reports.
Like those Web site ads that claim they will tell you "How to lose weight with this one weird trick...", this article introduces "one weird trick" (actually, just a simple workaround) for getting farm production into QuickBooks as an inventory, with a market value applied to it, plus a lot more.
This article applies to the QuickBooks desktop editions (Pro, Premier, and Enterprise) but not to QuickBooks Online: its inventory system operates differently, preventing practical application of the article's techniques. Also, this article applies to raised farm production but not to resale items such as resale livestock. Federal income tax recordkeeping for resale items requires a different approach (described in detail in the forthcoming Volume III of The QuickBooks Farm Accounting Cookbook™ series).
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