A SEASON OF "WONDER"
Have you
forgotten what it is to "wonder?" We're not talking about the
"feeling of doubt or uncertainty" that permeates our cynical, secular
society. Rather, let's go back to the original meaning: "a cause of astonishment
or admiration / rapt attention or astonishment at something awesomely
mysterious or new to one's experience." Consider, now, the "second-hand"
response from the first people who heard the shepherds' remarkable news.
"And all who heard it wondered at the things which were told them by the
shepherds." Luke 2:19 (NASB)
I Wonder as I Wander
I wonder as I wander out under the sky
How Jesus the Savior did come for to die
For poor on'ry people like you and like I
I wonder as I wander out under the sky.
When Mary birthed Jesus, 'twas in a cow's stall
With wise men and farmers and shepherds and all
But high from God's heaven, a star's light did fall
And the promise of ages it then did recall.
If Jesus had wanted for any wee thing
A star in the sky or a bird on a wing
Or all of God's angels in heav'n for to sing
He surely could have it, 'cause He was the King.
I wonder as I wander out under the sky
How Jesus the Savior did come for to die
For poor on'ry people like you and like I
I wonder as I wander out under the sky.
May we never lose our sense of "wonder" over the greatest gift ever given, in incarnation of God who is with us—Immanuel.
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HOW WILL YOU DO YOUR FINANCIAL REPORTING?
'Tis the
season to toil over financial statements. Many of you depend
on AFRA (Agricultural Financial Reporting
and Analysis) to convert your cash-basis accounting records to
"adjusted accrual" financial statements. Based on the Coordinated
Financial Statement forms developed at the University of Illinois
in the late 70s, this computerized system will be celebrating its 20th
birthday in 2004.
What's the future of AFRA? In
the months ahead we'll describe where we're going, why we're doing it
and how it affects AFRA users (as well as users of its counterpart,
The Ferguson System). First, though, let's examine the
three alternatives for financial reporting in production agriculture.
Three Levels
of Financial Accounting
1. Cash-Basis
Accounting/"Black Box" Analysis. If you maintain pure cash-basis
books and fill out a balance sheet for your lender once a year, you're
a member of agriculture's "silent majority." In effect, you've delegated
financial oversight and control of your operation to your lender and
his "black box" system of analysis.
2. Cash-Basis Accounting/"User-Supplied" Data. You're
in this category if you maintain cash-basis accounting, but produce
your own financial statements outside of the accounting system through
programs like AFRA or Finpack based on "Farm Financial
Standards."
3. Accrual/Managerial Accounting. Under
this process, financial statements (including inventory values) are
maintained within the accounting system. Up until recently
only large operations with internal accounting expertise could maintain
these systems; however, recent innovations in software (i.e. e.CLIPSE)
permit concurrent cash and accrual reporting as well as automatic inventory
adjustments driven from Crop Audit and Smart Feeder management
modules.
In the 25 years since Coordinated Financial Statements defined
the "recipe" for converting cash records to accrual, most serious players
in agriculture have at least adopted financial reporting option #2.
Agriculture structure and technology has changed dramatically in the past 25 years; therefore, it's time for many of you to prepare to move from the "Old World" (method #2) to the "New World" (method #3) level of financial management and reporting.
Here's a comparison of those two "worlds:"
We'll be addressing
these points in upcoming issues of e.farmsmart. In the meantime
we invite your questions and will help you formulate a transition plan
tailored to the aspirations and limitations of your operation.
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CROPSHOP04
SCHEDULED FOR FEDRUARY 10
Mark your
calendars and PDA's for February 10, 2004 in Louisville, Kentucky, for
CROPSHOP04. You'll
experience the latest crop information technology and learn how other
operations are taking advantage of managerial accounting. Plus,
you'll be in position to enjoy the National Farm Machinery Show, which
runs from February 11-14.
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TRANSFER
DATA FROM ANY ACCOUNTING PROGRAM INTO TRANSACTION PLUS
Yes, you
read that correctly! We've now successfully transferred historical
accounting detail from several companies using Quickbooks directly
into TransAction Plus using the optional TransAction Plus Import/Export
module. Originally designed for importing "bundled" transactions
from Excel and third-party payroll or depreciation programs, this
module has proven it can make the transition to FBS Integrated SeRVware
even easier.
The prerequisites and limitations of this process include:
| • |
Source
program must be able to export a ledger detail report into either
an Excel or ASCII file |
| • |
Most accounting programs don't maintain center, crop, livestock, feed, group, field or raw material histories or inventories; therefore these opening balances must be entered directly through FBS |
| • |
"Open" accounts payable and/or receivable as of starting date must also be posted directly through FBS |
The TransAction Plus Import/Export module sells
for $1495.00 and is also provided as a fee-based service from FBS.
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HOW DO YOU TRACK PRE-PAID EXPENSES?
This time
of year many of you are laying in crop inputs for the next season's crops. What's
the best way to handle this transaction that simultaneously affects tax
records, inventories and cost accounting? Visit our Integrated
Crop Demo on our website and click on the Prepaid Expense tab. Then
complete the demo and click on the Successful Farming radio button and
take the quiz. If you answer all the questions correctly, you'll
win a 4-In-1 FBS Stylus Pen. Restricted to one attempt person.
To get started, click
here.
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IT'S
THAT 'SPECIALS' TIME OF YEAR, FOLKS. AND WITH SAVINGS THIS BIG ON MULTIPLE-MODULE
BUYS, THE WORD ISN'T INTEGRATE – IT'S INTEGREATLY!
For a limited time—choose
from two outstanding offers, each dispelling notions of price being
a barrier to investing in ag's leading integrated management information
system.
SPECIAL
NO. 1: Buy
one program, get a second at HALF PRICE; buy two, get a third program
FREE! Save up to $1,200. Earn 60 days of free
support.
Buy any FBS program listed on our offer
page and you can get a second one of equal or lesser value at 50%
OFF. Or, buy two programs and you'll get a third one of equal
or lesser value absolutely FREE. A great opportunity to get
started with your integrated MIS!
SPECIAL
NO. 2: Buy
the complete e.CLIPSE
management information system. Save $1,390. Get a FREE HP
iPAQ Pocket PC. Two
days of on-site training are included in the package. (Free SST Stratus
software is also included with crops version.) This is our
first special on e.CLIPSE and
one that hands you a turnkey integrated MIS at unprecedented savings.
For full particulars on both specials, including
details on individual programs, features and benefits, call 800.437.7638. Since
these are time-limited offers, don't wait until it is too late!
Free
iPAQ PC and big dollar savings too!
|
SOFTWARE Q&A
– WITH Q'S FROM YOU, OUR CLIENTS!
Send us
your questions/problems–be they short, long, simple or downright
frustratin'!–about SeRVware
and we'll handle them right "on the air" for the benefit of all.
|
Q.
|
What year-end procedures do I need to do?
|
| a.
|
There are several reports you should check at year's
end (or any time for that matter).
Tip:
you can "drill-down" and edit entries from any report
screen.
| 1. |
Be
sure your Check Reconciliation Report
agrees with your latest bank statement. |
| 2. |
Run
a User-Defined Report for undefined
entries (check the undefined box in the upper right
of the report parameter screen). The
report should be blank. Edit any entries
that appear. |
| 3. |
Be
sure your Balance Sheet and Trial
Balance "balance." |
| 4. |
Run
a Ledger Account Detail Report recapped
by centers. Be sure all the centers
in the recap belong in that ledger account. |
| 5. |
If
you have Accounts Payable and/or Accounts
Receivable modules, compare the AP
and/or AR Detail Report with the total
in the Accounts Payable and/or Accounts Receivable
ledger accounts.
Tip: Use separate ledger
accounts for any A/P A/R entries that are not entered
through the A/P A/R modules. |
| 6. |
If
you use the Payroll module and pay
taxes on a cash basis, on December 31 you need to
make a Reversing Journal Entry to "back out" the
accrual posting of payroll taxes expensed and accrued
to employer's FICA, Medicare, FUTA, SUTA and made
to a pension or cafeteria plan that are not yet
paid. Just click the "Reversing Entry"
when you roll over to the new year. On
the first day of the new year the entry will reverse
itself. |
| 7. |
You
can start a new accounting file at any time and
"re-rollover" ending/beginning balances as often
as needed. |
| 8. |
Retained
Earnings: New in version 7.5, is the
ability to have the program calculate the retained
earnings from the previous year and post to the
new year. |
| a. |
Go
to Setup, Accounting, General Information
and choose the account to which you want to post
retained earnings. |
| b. |
After
you have rolled into the new year go to Input,
General, and under Accounting Input
double left click on Calculate Retained Earnings: Confirm
the Retained Earnings Account and choose the first
month of your fiscal year. Then click
on Calculate. To see the
entry or entries posted, choose Change/Delete
and Search. Set the Date Range for 1/1/2004
to 1/1/2004 and choose the ledger account to which
retained earnings were posted. There
may be more than one entry as it brings over net
income by division. The total of the
entries will be the net income for the previous
year and can be verified by running an Income
Statement for the previous year. |
Call in your questions (800.437.7638) or e-mail them
to support@fbssystems.com.
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sales@fbssystems.com
800.437.7638
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