Farm records are written details of all activities on the farm.
| Record | Information kept |
|---|---|
| Inventory | List and value of assets |
| Production records | Yields of crops, milk, eggs |
| Income and expenditure (cash) records | Money received and spent |
| Labour records | Workers, tasks, hours and wages |
| Field operation records | Planting, weeding, spraying dates |
| Marketing records | Sales, prices, buyers |
| Breeding records | Services, dates, sires, calving |
| Health records | Vaccination, treatment, diseases |
| Feeding records | Feed type, quantity, cost |
| Stock register / store records | Inputs received and used |
Simple, accurate, up to date, clear, complete and kept safely.
An inventory is taken at the start and end of the year to value assets.
A statement of assets, liabilities and net worth at a given date.
| Term | Meaning |
|---|---|
| Assets | Things owned that have value (land, machines, stock, cash) |
| Current assets | Can be turned to cash within a year (cash, produce) |
| Fixed assets | Long-term (land, buildings, machinery) |
| Liabilities | Amounts owed (loans, creditors) |
| Current liabilities | Due within a year |
| Long-term liabilities | Due after one year |
| Net worth | Assets - liabilities |
| Assets | KSh | Liabilities | KSh |
|---|---|---|---|
| Current assets | 150,000 | Current liabilities | 80,000 |
| Fixed assets | 650,000 | Long-term liabilities | 120,000 |
| Total assets | 800,000 | Total liabilities | 200,000 |
Net worth = 800,000 - 200,000 = KSh 600,000.
The fall in value of an asset over time due to wear and tear or age.
Straight-line method: Annual depreciation = (Cost - Salvage value) / Useful life.
Example: Tractor cost KSh 1,000,000, salvage KSh 200,000, life 8 years: (1,000,000 - 200,000) / 8 = KSh 100,000 per year.
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