The information from past records allows you to budget with confidence for the coming year. Examining past performance may indicate ways to decrease expenditure. Keep accounts payable in a separate file until you pay them. You can then keep accounts paid in a third file in order of payment under suitable headings. Make sure that you write cheque details on the cheque butt.
Cash book Use a cash book to record cash flows into and out of the farm business.
The cash book is an important reference for both accounting and management purposes. The Farm Management Foundation produces a farm Record Book. A 'Farm and Small Business Record Book is available through the Lard Book Company. There are also several computer programs for this purpose. Contact your local software distributor for more information on computer cash book programs.