Accounting 101
Farm Accounting
F/S Prep
Technology
Firm Procedures
100
The Accounting Equation
What is Assets = Liabilities + Equity
100
The schedule on a tax return where farm income and expenses are reported.
What is Schedule F?
100
Shows revenues and expenses.
What is Income Statement (Profit & Loss, Statement of Activities)?
100
The undistributed account in ACS, which should have a zero balance.
Account 999
100
This is a process that takes place immediately after documents are received and ensures records are preserved digitally, accessible to the whole team, and safe from being lost, destroyed or stuck on someone's desk/inbox.
What is scanning?
200
Three types of current assets.
What are: Cash, Bank Accounts, Accounts Receivable, Inventory on Hand or Investments? (Correct question must reflect 3)
200
CRP annual rents, for example.
What are government program payments (income)?
200
Shows what a company owns, owes and equity.
What is a Balance Sheet (or Statement of Financial Position)?
200
Where are journal mode and bank account mode buttons in ACS?
200
This time entry step takes place immediately after completing work for the client and is the foundation for invoicing clients.
What is entering billable time?
300
Familiarize yourself with the client by reviewing notes and determining what has been done in the prior period/prior year for the same client.
What should be done before starting the bookkeeping for a particular period?
300
Journal entry that increases interest expense and increases note payable balance.
What is
Debit Interest Expense
Credit Note Payable
300
Outlines the scope and limitations of work, responsibilities of parties, provides legal protection and is required before financial statement preparation work.
What is an Engagement Letter?
300
Inaccurate client billing, negative impact to firm profitability, poor reflection on staff efficiency or erroneous payroll checks, to name a few.
What are risks of not recording time accurately and timely in Practice CS?
300
Make notes and document your client communication on the PDF or within notes in GFR.
What should be done following a conversation with a client?
400
This action increases the balance of the note payable account.
What happens when you credit the account note payable?
400
Both are related to either labor (services) or machinery rent. Income is cash coming to the farmer. Expense is cash being paid by the farmer.
What is the difference between custom hire income and custom hire expense?
400
This is where every transaction is recorded; it is organized into accounts, and each account shows debits and credits that make up its corresponding balance.
What is a general ledger?
400
If you don’t do this step consistently and correctly in GoFileRoom, scanned documents may be impossible to find later, leading to wasted time and errors.
What is indexing?
400
This is a step completed by the bookkeeper to identify and correct data entry errors, misclassifications or missing information prior to sending to another team member.
What is self-review?
500
Tangible property that meets the de minimus safe harbor value of $2,500 (or capitalization policy of the company).
What is a fixed asset?
500
Tax planning purposes, ensures proper categorization for tax return preparation as well as aids farmers with farm management decisions including for banking or loan needs.
Why is accurate bookkeeping important?
500
Entries typically made at the end of an accounting period to update the general ledger, so correct balances are reported in correct periods.
What are Adjusting Journal Entries?
500
Digital tracking of the progress of each client engagement from set up to delivery, which helps with organization, efficiency, visibility, accountability, scheduling, consistency, quality control and client service.
What is a workflow in GoFileRoom?
500
This is our invisible asset that builds client trust, keeps referrals coming, reduces costly errors and is the foundation of this firm.
What is high quality client service?