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beldinghillfarms
October 13, 2021
Question

We run a small farm and I’m trying to figure out how we should set up our chart of accounts. For example, we have several income and expenses for our chickens.

  • October 13, 2021
  • 1 reply
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We have breeding stock(inventory), baby chicks we sell, older females we sell, older males we sell for meat, etc. Each of these birds require feed and we would like to know how much feed we have given them before we sell, to make sure we aren’t losing money. How would we set up our accounts to accommodate this.

1 reply

T
Trish_T
October 14, 2021

Hi beldinghillfarms,

 

Welcome to Community! It's great to hear that you've chosen QuickBooks Online for your farm's accounting needs.  I'd be glad to assist you with setting up essential items to ensure your transactions are recorded and tracked accurately!

 

If you've signed up for QuickBooks Online Plus, you'll be able to follow what's in stock and get alerts when it's nearing the time to re-order.  If you don't have this plan you can upgrade to get started with inventory tracking.

 

The first step is to turn on inventory tracking, if you haven't done that already.  Here's how:

 

1 Go to Gear icon ⚙ and then Account and Settings

2. Select Sales

3. Click the Edit ✎ in the Products and Services section.

4. Turn on Show Product/Service column on sales forms, Track Quantity and Price/Rate and Quantity on Hand.

5. Hit Save and then Done.

 

Next, you'll enter your inventory items by following these steps:

 

1. Open Sales, on the left menu bar and then Products and Services

2. Select New and then Inventory

3  Enter all information that applies, including the initial quantity on hand and the As of date field

4. Choose a Reorder point 

5. Select the Inventory asset account ▼ drop-down and select Inventory Asset. QuickBooks uses this account to track the cost of all the products you have in stock (or inventory value).

6. Set your Sales Tax for the product 

7. Complete the Purchasing and Supplier information

8. When completed, hit Save and Close or click the arrow to select Save and New

 

Once you've setup your inventory items, the quantity on hand will decrease based on the amount entered on invoices or sales receipts.  For your reference and additional information, please refer to this article to Set up and track your inventory.

 

If you're uncertain as to which accounts to select when entering your products or services, I'd recommend speaking with your Accountant.  If you don't have one, click here.

 

Should you have additional questions, please feel free to reach back out.  We'd be happy to help!

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