Farm Accounting

[maxmak]

I am a farmer and grow variety of crops, but no matter which crop I grow the basic structure remains the same. I always have to buy pesticides, fertilizers, compost etc. I use my tractor and the required implements related to the crops. And since I also employ people I have to maintain a payroll, but I also hire contractual labour at times when required. Although I don’t usually require it but sometimes I have to pay for the storage of my harvest as well, but whether the harvested crop is kept under lock and key or out in the open, I have to hire a guard for it.

I have some basic understanding of accounting but its not enough for me to make proper chart of accounts for farm accounting. Would it be possible for you to help me in this matter. I grow Rice, Wheat, Cotton, Sugar cane etc. If you require certain kind of information I can provide that.

What I want to know is what should be my inventory & COGS be comprised of. Farming roughly consists of following steps

Step 1 Landscaping (preparation of land)
Step 2 Seed sowing/ Nursery transplanting
Step 3 Irrigation (Water from Canals, Tube wells; which use diesel or electricity)
Step 4 Fertilizers, Pesticides etc
Step 5 Harvesting
Step 6 Storage
Step 7 Supply to market (at a cost of course)

other expenses would include Salaries, Depreciation, Farming loan; interest & principal


Thanks for your response