Reconciling Livestock Tallies
One of the challenges in preparing a set of farming financial statements is the completion of the livestock reconciliation.
A simple livestock reconciliation is as follows:
- Opening Stock Numbers
- Plus Purchases
- Plus Natural Increase
- Minus Sales
- Minus Deaths
- Equals Closing Stock Numbers
The things that go wrong include:
- Last year’s tallies were incorrect.
- This year’s tallies are incorrect.
- Some purchase numbers have been omitted or duplicated.
- Natural increase and deaths are not recorded accurately.
- Some sales numbers are wrong.
- Leased in livestock have been included.
- Leased out livestock, which are not on the property, have been omitted.
- A reasonable guess is made.
- Livestock were bought or sold within a few days of the balance date
Many farmers keep notebooks detailing regular stock tallies and record livestock sales and purchases. Tallies are often taken at shearing and lambing. Trucking invoices can be useful as they detail stock movements, ages and quantities.
Please feel free to add notes to your figures regarding the above, so your accountant can correctly reconcile your figures.
You can also email these through to your accountant directly or to Nicola to be added to your file.
As a farmer, Christine understands our business and how farmers and growers operate.
We use Rural Accountants to provide a full accounting service to an orcharding partnership which operates a number of orchards with a wide spread of varieties and management systems. Rural Accountants are always timely and accurate, and their annual financial accounts are extremely easy to understand and very grower-friendly.
Rural Accountants is a real asset to our business.
The team at Rural Accountants pretty much manage all our administrative tasks for the group including payroll and tax planning, ensuring we don’t pay any more than necessary. They are at the forefront of technology and have helped us get up and running with Xero and Figured which is much more efficient than the way we used to work.
Christine is very knowledgeable, great to deal with and knows our business well. She is also a sheep & beef farmer so knows the industry really well and understands our needs.
Rural Accountants keeps us on track through strategic and forward planning meetings throughout the year. Christine knows our business inside out so she can deal with our questions instantly.
What Our Customers Think
I used to work out my GST and process it manually which would take me at least a full day every two months. Angelina then set up reconcilliations rules and other quick tools, and showed me how to do all my reconcilliations and process my GST returns through Xero which now takes me no time at all!