Although, information and communication have become common words in the modern world dominated by technological developments, they always mattered in the agricultural industry. From day one, humans started growing crops, raising livestock and catching fish, they started asking and gathering information from all available sources. With the changing world, farmers and agricultural industry are changing at the same pace. Agreed, that still many farmers think accounting is a job involving entering credit and debit in two separate columns, which is better left off for accountants.

Introduction to Use of Information Technology in Agriculture Industry

Some farmers are using computers and software’s; however, these software’s seem to be serving general purpose. Usually, farmers are using a system that can be used by any business, designed for “Single entry” bookkeeping program or a generic version allowing low and “Double entry” accounting feature. Nevertheless, such systems in no way meet the purpose of using accounting software in agriculture. It is observed that these systems are not enough to track the information or print records regularly needed by farming enterprises or the farmers. In short, such software’s will offer simplicity but will lack in flexibility.

The details that are missed out by such generic or simple accounting software are offered by comprehensive accounting software that is specifically developed by OneAccounting for Agriculture industry. Henceforth, farmers will not have to focus on credits and debits, balance sheets or income statements, finances or taxes; but they will get all the management information needed to take better and productive decisions.

Farmers do understand the importance and impact of advanced technology for minimizing labor costs and increasing profits. Way again, it has been noticed that farmers usually make a heavy investment in machineries and tools, but fail to incur similar investments in other technological sectors that would save them time and money.

According to one of the reports, agricultural production has increased by about 80% since last fifty years. This growth was possible due to the use of smart crop management and optimal use of land. As of now, farmers are focusing on increasing yield per acre and per animal.

What Farmers Should Understand Before Investing in Accounting Software

-> Technology is Important Not the Software: Already farmers were using innovative technology like tractors mounted with GPS and multispectral imaging devices. By squeezing every drop of profit they make, farmers are investing hundreds and thousands of dollars in the latest technology. The only thing is; it is a narrow aspect of investing in technology, which should be assisted with a comprehensive expense management and accounting software.

Although an accounting, management software is not directly related to or is not in direct connection with the crops in the field, it offers detailed data and schematic of which crop is doing better, crops that are not yielding profits and particular part of land that is under-performing.

-> If Farming is a Business, Treat it like one: although farmers are spending time in their fields and for pasturing, they do it because they want to earn money. In fact, farms are a source of business either offering profit or loss. For ensuring this asset, perform to its fullest potential by increasing efficiency and maximizing the ROI, use of accounting software is must. When it comes to accounting and farming, sadly, most of the farmers are relying on the cash basis of accounting. This method usually fails to reflect profit, loss and total earning of their business. Such farmers are not only ignoring implementing technology in a broader perspective, but they are neglecting the best foregoing accounting practices that otherwise will help them in increasing their ROI.

Tips for Selecting the Best Accounting Software for Agriculture

-> The agricultural industry as a whole deals with the utilization of natural resources making it susceptible to huge accounting implications. The basic agricultural needs often surpass the basic accounting needs of tracking finances in accounts payable, accounts receivable, and in the general ledger. Agricultural accounting software should be able to track inventory, usage of land, tending processes, discoveries, extraction and other things that will integrate finance and operations in one system.

-> Agriculture is a business dealing exceptionally with raw materials. The system should support increased and enhanced movement of these goods in the downstream. Accounting Software developed and designed by OneAccoutning is compatible to maximize logistics and inventory management for effectively delivering goods in the market.

-> Apart from inventory management and utilization of natural resources, it is good if the software offers few advanced technological features. Wastage calculation, lot or batch based inventory tracking, different units of measurement conversion and interest calculation. OneAccounting software is integrated with some relevant and industry specific features that are seldom found in any other accounting system.

-> The agriculture industry has its own language; therefore, it is important that the software you choose should speak your language. Ensure that you prefer investing in software that allows enough scope to customize the software as per your individual needs. Software offering enough flexibility to determine various fields and reports is extremely important, especially when your aim is to generate information. Find a software that allows such customization and implementation of customized fields in a seamless manner.

-> Of all the necessities, the agricultural industry is in strong need of accounting software that helps them in all the aspects of budgeting and forecasting. Keeping aside the regular challenges of predicting demand, the agriculture industry is always facing uncertainty from the supplier side. Comprehensive accounting software with well-integrated inventory management system will help you forecast, strategize, plan and implement theories and solutions to face What-If scenarios.