Methods Of Record Keeping

There are several methods for keeping your records. In this article I will briefly explain the different ways you can organize and manage you equine affairs.

The 'shoebox method' (keeping all your receipts in a box) is not the best method albeit it is the cheapest. The tax department does not like to be met with this management system. In the in end, if audited, it can become the most expensive lesson learned.

Paper methods are another way of organizing records. For horses health records most veterinarians can provide you with charts to keep these records. Some internet sites provide free print off's for charts also.

The financial records are kept in a journal & ledger form. Although journals and ledgers are sometimes kept in pencil, entries should be made in pen. Care should be taken to keep your handwriting legible. The down side of keeping ledgers by hand is that mistakes are very easy to make.

You can purchase ledger packages that are horse industry specific at your local tack shop. There are also a wide range of packages available incl. Breeding records, financial ledgers and health records to name a few. In addition, there are a number of 'one-write' systems on the market which use carbon paper to make journal and ledger entries when receipts or cheques are written.

The method you chose for filing should be as simple as possible so that keeping it up to date does not become a chore. The files should be kept organized and well labeled.

The most commonly used current method, however, is commercial software. This can be purchased either industry specific, such as Horse Trak software, or standard accounting programs like Quicken Home and Business.

The advantage of computer records is that your records are always neat and legible. The software is almost always compatible with Tax filing software. The software available now is much more intuitive. This is great for everyone who is not an accountant. Mistakes are easily fixed and the software usually picks up major ones. Most accountants can interface with the standard software programs if you use an accountant to file your taxes. Most of the banks offer download features through the online banking. This is a great feature as your bank account basically keeps your books for you.

The large accounting software companies like Quicken, QuickBooks and Simply Accounting have add on modules you can purchase that are horse industry specific. It is handy to be able to keep all your business affairs together. This makes tax time much easier. You are also able to have a clear picture of where you business is financially. This is vital for any financing you may need and important so you can evaluate what management changes you may need to make.

Spreadsheet programs like Excel and Access are a less expensive way of keeping your records. Because they are not set up specifically for the purpose of accounting the set up can be much more confusing and time consuming for the non-professional computer user. These programs are not as intuitive and mistakes can be made easily. However, because you can customize them easily, they can be a good method of record keeping for horse information.

The most time consuming part of any of the software programs is the initial set up. Once set up, this method is truly the fastest and most effective method. You can automatically generate reports and easily evaluate your business and personal financial situation. All horse records are in one place and well organized. This method greatly reduces mistakes and is a space saver as the number of paper files needed is reduced.

There are several great websites that can offer you assistance and information on how to set up records. These sites can offer you help in making a decision on which method or program that would work for you.

Whichever method you choose make sure it is one that meets your needs. Also remember that, while computer programs simplify record keeping, there should always be hard copies of your records kept somewhere in case of a computer problem and that you should also keep a back up disk. Remember it takes twice as long to fix something than to do it right the first time.

Megan Dykeman- 2004 (c)

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