Junior and Senior level Ag Bus.
Colorado Agriscience Curriculum
Section:
Advanced Agribusiness
Unit:
Entrepreneurship
Lesson Title:
Quick Books Record Keeping
Colorado Ag
Education
Standards and
Competencies
Colorado Model
Content
Standard(s):
Student Learning
Objectives:
AGB11/12.03 - The student will be able to formulate
and analyze financial records and use the
information for evaluation and planning.
Utilize computer accounting and analysis software.
Math Standard 3: Students use data collections and analysis, statistics, and
probability in problem-solving situations and communicate the reasoning used
in solving these problems.
Math Standard 6: Students link concepts and procedures as they develop and
use computational techniques, including estimation, mental arithmetic, paperand-pencil, calculators, and computers, in problem-solving situations and
communicate the reasoning used in solving these problems.
Upon completion of this lesson the student will be able to:
1. Students should understand the need for good recordkeeping skills.
2. Students should demonstrate basic accounting skills.
3. Students should understand how to use QuickBooks Pro 2004 (registered
trademark) to enhance their recordkeeping and improve their management
abilities.
Time:
50 minutes 1-3 class periods, depending on the desire to teach Quick Books.
Resource(s):
Texas Cooperative Extension. DeDe Jones, Jay Yates and Dustin Gaskins. Extension
Agricultural Economics Homepage (http://agecoext.tamu.edu)
Department of Agricultural Economics/Texas A&M University
2124 TAMU/College Station, Texas 77843-2124
Phone: (979) 845-1751 Fax: (979) 845-3140
Department of the Treasury, Internal Revenue Service, Publication 552,
Recordkeeping for Individuals,(Rev. April 2005) Basic Cat. No. 15100V
Instructions, Tools,
Equipment, and
Italicized words are instructions to the teacher, normal style text is suggested
script.
Unit 9, Lesson 3: Quickbooks Record keeping
1
Supplies:
Note: This lesson is very in-depth and will take some preparation by the
teacher outside of class. Objective 1 is just verbal, while objectives 2 and 3
suggests the use of Quick Books. It is not essential for teaching, but for the
sake of comprehension, it is highly recommended.
Copies of Quick Book Pro 2004.ppt, one per student.
Projector to run PowerPoint or copies of slides for overheads
Suggested software: Quick Books (not necessary but it would help with
comprehension.
15 balloons
Print two copies of Quick Book Test Areas found at the end of the curriculum. One
copy will be put into the balloons. The other will be used for test purposes.
Interest Approach:
Cut up a copy of the Quick Book Test Areas and give each student or group of
students an item. Hand out a balloon to each student(s). Instruct the students
to stuff the item in the balloon and blow it up without tying it. On the count of
three, tell the students to let go of the balloon. As the balloons fly around the
room, have the students catch them. Each student or group of student(s)
should end up with a balloon/item. Tell the student to look at their item and sit
down and listen. Within the Power Point, there are test questions that relate to
the “test Items”. As each test question comes up, ask the student(s) who have
the corresponding “item” in their balloon to answer the problem.
Note: The instructor should remember to use only the “test items” he/she plans
on covering in the lecture. Also remind the students they will be tested on all
the material at the end of the recordkeeping unit.
Objective 1:
Students should understand the need for good recordkeeping skills.
When we think of farming and ranching we usually think of driving a tractor or
pulling a calf. Rarely do we picture a farmer/rancher sitting in front of a
computer screen entering data. But, the most important part of being a good
ag. manager is data collecting and recordkeeping. Before we can make sound
management decisions, we need to have facts and data to analyze. The
quality of our decisions are directly related to our ability to gather and organize
this data. Today we are going to look at ways of organizing this data so that we
can use it, whether it be for paying bills, calculating our taxes, allocating
enterprise expenses, or analyzing our financial reports. We are jumping head
first into computerized recordkeeping in the agriculture industry!
I can not stress enough the importance of accuracy when keeping records. In fact,
lack of data is better than incorrect data. Also, it is important to organize it so you
can find it quickly. Filing cabinets are essential farm equipment. A fire-proof safe is
worth the money for protecting important, irreplaceable documents and data. If you
are audited you need to be able to find historical records.
A PDF from the IRS (IRS recordkeeping p552.pdf) is included with this curriculum.
The Instructor may review and use.
In this day and age, an ag. manager needs a computer to keep track of information
and data. Also, remember, it is also very important to back up your computer data
and wise to keep hard copies of some information. There are numerous computer
programs that can be used to store, sort and analysis data.
A list of some are included in the word document Computer Software
Unit 9, Lesson 3: Quickbooks Record keeping
2
Information.doc. to be used at the instructors discretion.
Today we are going to look at one of the more popular computer recordkeeping
software applications, Quick Books (reg trade mark) Pro 2004.
Objective 2:
Students should demonstrate basic accounting skills.
Instructor should review the Quick Book Pro 2004.ppt and determine what part
of the curriculum he/she would like to use. The files include a brief accounting
explanation. Also include are E-moments in the notes portion of Power Point
for certain slides. These E-moments are not found in the PDF.
Objective 3:
Students should understand how to use QuickBooks Pro 2004 (registered
trademark) to enhance their recordkeeping and improve their
management abilities.
Instructor should review the Quick Book Pro 2004.ppt and determine how much
of the curriculum he/she would like to use. These files include step by step
illustrations of how to use Quick Book Pro and also practice problems.
Also included are E-moments in the notes portion of certain slides in the Power
Point only.
Lesson 3 starts on slide 75.
Activity

Attached at the bottom of this document is an eight page summary of
various record-keeping software programs. This is merely to promote
other computerized record-keeping systems outside of Quick Books.
There are some great scenarios.
Review/Summary:

Contained within objectives two and three.
Application-Extended
Classroom Activity:

Bring in a tax accountant to show practical skills using Quick Books
above and beyond what you taught in class.
Application--FFA
Activity:

Encourage students to participate in the FRBM CDE.

Encourage the chapter treasurer to create a budget and keep all accounts
in Quick Books.
Application--SAE
Activity:

Encourage students to keep their production SAE records in Quick
Books.
Evaluation:
Print off the list of Quick Book areas found at the end of the curriculum.
Instructor may need to create more test areas depending on the size of the
class. Cut the list up and put in a container. Have each student or a group of
student() draw out an item. Ask the student(s) to create a “how to” scenario
Unit 9, Lesson 3: Quickbooks Record keeping
3
about that portion of the program. Tell the students they are creating a test
question. The student(s) must provide the “step by step’’ answer to the
scenario. Compile the scenarios and give as a test (the instructor may have to
add information gained from the previous test question to help the test flow).
The instructor may want to include questions on the accounting and
recordkeeping section also. Students will probably have to work with the
program to help them build their answers. Each instructor will have to
determine the best way to give the test depending upon what is available for
use i.e. a computer lab with Quick Books loaded, only the instructor’s computer
available, open book test, do orally in class with just certain students answering
the questions by going through the steps so the class can see. An example of
a scenario would be : The item drawn is “Create a New Account”. The test
question is: Give “step by step” instructions on how to build an asset account.
Answer:
Step 1: Click on “List” on the tool bar.
Step 2: Click on “Chart of Accounts”.
Step 3. Click on “Account” at bottom of window
Step 4. Click on “New”
Step 5. Fill in the “Type Box” with “Fixed Asset”, “Name” the asset, “Description”
add a description, “Opening Balance” a reasonable valuation of the asset and “as of
Date” today’s date.
Step 6. Click “OK”
Evaluation Answer
Key:
Students will provide the answer to each question.
Unit 9, Lesson 3: Quickbooks Record keeping
4
Quick Book Pro Test Areas
(cut up one copy for students and their balloons)
Create a new account
Add a sub account
Merge two expense accounts
Inactivate and reactive an account
Add a class
Write a check
Enter a bill
Pay a bill
Enter a deposit
Memorize and recall a transaction
Reconcile an account
Purchase a tractor – no down payment or trade-in
Set up a loan for a tractor
Set up a loan payment for a tractor note.
Filter a report
Unit 9, Lesson 3: Quickbooks Record keeping
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Computer Software Information
Free Software

Marketing Cull Cows - This template was written for cull cow owners to help them evaluate the
possibility of retaining ownership until a later date. Microsoft Excel is required to run this
template. To save this document, follow the instructions below:
-
Right click on the link above.
-
Select "Save As"
-
Save the file to a folder on your computer.
-
You will then be able to open this file on your own computer.

After you have saved this program to your computer, you must reset the "Macro Security
Settings" in Microsoft Excel to "Low". This will enable the macros within the file to run.

Vineyard Establishment and Wine Grape Production Budget Generator - This template was
written for vineyard owners to help them determine the establishment and yearly operating
budget. Microsoft Excel is required to run this template. To save this document, follow the
instructions below:
-
Right click on the link above.
-
Select "Save As"
-
Save the file to a folder on your computer.
-
You will then be able to open this file on your own computer.

After you have saved this program to your computer, you must reset the "Macro Security
Settings" in Microsoft Excel to "Low". This will enable the macros within the file to run.

Bid Price per Head for Beef Cow Herd Template - This template was written for beef cattle
producers to help them analyze the situation of what they can pay for a replacement heifer.
Microsoft Excel is required to run this template. To save this document, follow the instructions
below:
-
Right click on the link above.
-
Select "Save As"
Unit 9, Lesson 3: Quickbooks Record keeping
6
-
Save the file to a folder on your computer.
-
You will then be able to open this file on your own computer.

Commodity Option Analyzer - This program was written for producers wishing to evaluate
option strategies when used as a risk management tool. Information supplied to the program is
used to determine the various potential outcomes that may arise from option strategies.

Beef Cattle Backgrounding Management Decision Aid - This program facilitates the collecting
and analysis of data for projection and actual evaluation of the backgrounding or preconditioning
activity. This decision aid also generates data that can be used to support a backgournding
benchmark data base being developed for the state of Texas.
Click here for a printable order form or to order online.
The following free software is found at http://www.ranchers.net/. Once at this site, select Software.



Calf Projection Spreadsheet - This spreadsheet helps calculate the costs and breakeven price
when buying calves in the fall to run as yearlings or to push and sell in the early winter or spring.
Montana State University - This site contains spreadsheets and programs designed to assist
you perform tasks ranging from financial record keeping to keeping production information.
University of Missouri - This site contains spreadsheets and programs designed to assist you
perform tasks ranging from financial record keeping to keeping production information.
Software for Purchase
(Prices for the software listed below were current as of April 19, 2000).
Cow-Calf SPA Software and Handbook (Cow-Calf SPA) - SPA software generates the SPA reports
including (1) description, (2) reproduction and production, (3) grazing, and (4) the integrated financial and
production performance information including, among other measures, cost of weaned calf production
and enterprise return on assets (ROA). These are stand-alone programs that run under Windows. They
are compatible with either the 3.1 or windows 9x* systems. The SPA Handbook is a series of fact sheets
and worksheets that address specific SPA implementation issues for the cow-calf enterprise.
Click here for a printable order form or to order online.
FINYEAR and Farm and Ranch Managerial Accounting (FINYEAR) - This handbook has been
developed for training CPA's, accountants, and producers on how to prepare financial statements, set up
the chart of accounts, and address specific accounting issues that enable preparation of managerial
accounting information for users. This is a publication in teaching courses as well as a reference. The
FINYEAR software is included with the handbook follows the Farm Financial Standards Guidelines and
Unit 9, Lesson 3: Quickbooks Record keeping
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calculates the sixteen financial ratios. This is a stand-alone program that runs under Windows. It is
compatible with either the Windows 3.1 or Windows 9x* system.
Click here for a printable order form or to order online.
Beef Cattle and Forage Business Management Spreadsheet Decision Aids (BCBA) - A set of 30
spreadsheet decision aids to facilitate budgeting, data collection, and investment evaluation that
complements the Cow-Calf SPA and Stocker/Feeder Retained Ownership software. There is also a set of
ten spreadsheet decision aids that address issues of forage enterprise budgeting, own or custom hay
harvest, hay storage cost, hay value based on quality analysis, fencing cost, and brush control
investments.
Click here for a printable order form or to order online.
Part-time Cattle Ranch Decision Aids (PT) - These decision aids have been developed in recognition
that 90% of the cow-calf producers are part-time producers. Many have an opportunity to use business
analysis approaches to reduce cost. These 23 decision aids assist in data collection, budgeting, breakeven analysis, investment analysis, and use of IRS data to calculate cost of production. Collecting and
using your own data and doing the "figuring" with the assistance of the computer spreadsheet will lead to
reducing the cost of owning a part-time cattle herd.
Click here for a printable order form or to order online.
Can You Afford a part-time Ranch (AFFORD) - Investment in a part-time ranch is much more like
buying a residence than making an investment in a business expected to generate a profit. This decision
aid helps summarize investment requirements, project cow-calf operating costs, and returns and
analyzing repayment capacity of the part-time cow-calf enterprise. Non-ranch earnings are considered to
calculate total cash available (repayment capacity) and the feasibility of purchasing or owning a part-time
ranch.
Click here for a printable order form or to order online.
Stocker/Feeder SPA Retained Ownership Decision Aids (RETAIN) - This is a set of ten spreadsheets
based decision aids for projecting the performance and summarizing actual closeouts for (1)
backgrounding (preconditioning), (2) stocker, and (3) custom feeding enterprises. The methodology used
follows the Stocker/Feeder SPA Guidelines. A market decision aid helps evaluate using the future and
options marketing alternatives.
Click here for a printable order form or to order online.
Unit 9, Lesson 3: Quickbooks Record keeping
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Ranch Business Planning Decision Aid (RPLAN) - This provides the guide, work sheet, and decision
aids to develop a long-term (10 years) ranch business plan. Investment requirements, costs returns, and
borrowing options are easily changed to facilitate "what if" analysis. This software is particularly useful
after the cow-calf SPA analysis is completed and a good production and financial position of the current
ranch business is documented. This decision aid package is also useful for initial investment analysis for
those producers evaluating the ranch investment opportunity.
Click here for a printable order form or to order online.
AgCHEK - Windows based financial software that allows you to record transactions in a check-type
format. Developed by Red Wing Accounting Software.
Livestock Management Module - works with AgCheck for Windows and allows you to:
• Set up each group of livestock separately. Quantities and expenses are tracked for producing each
group.
• Track and automatically update inventory, cost of sales, and inventory values.
• Allocate pre-paid expenses as used.
• Generate a Cost of Production Report for each livestock enterprise, lot, or group (shows projected and
actual expenses).
• Set up a budget and monitor your progress against it.
• Generate other reports such as: hedges and contracts journal, feeder livestock position, cost sensitivity,
and production efficiency.
Cost: $695 ($1,085 with Livestock Management module)
Brisco Software - Accounting program developed by Brisco Charolais & Software. Takes more of an
accounting approach (transactions are not recorded in a check-type format).
Basic Accounting Package - Suitable for most farm operations - capable of producing simple invoice
with automatic posting to accounts.
Cattleman’s Calculator - PC Software collection of programs that will calculate various forms of breakevens and profits and losses for a broad base of cattle production ability: Includes the following programs:
Feedlot Break-Even Grazing or Pasture Break-Even
Feedlot Profit & Loss Grazing Profit & Loss
Cow Herd Profit & Loss Purchase Price
Unit 9, Lesson 3: Quickbooks Record keeping
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Each of the programs can be utilized alone or in combination with the others. For example, a cow calf
producer may decide to retain ownership of the calves once they are weaned. In this case the cost
associated with those animals can be input into the Grazing Profit & Loss programs and added with the
variables of running cattle for a grazing season.
Cattleman’s Calculator = $189.95
Rancher’s Version = $189.95
Market Manager = $189.95
PC Software = $99.95 (Includes: Cattleman’s Calculator & Ranchers Version)
Cost:
CropPro - Interactive software that analyzes user-supplied information to determine net returns,
expenses, and break-even prices for a row crop operation. Also generates budgets.
Cost: $50.00
(Note: The BudPro package includes both the CropPro and StockPro programs.)
Microsoft Money - There are many Microsoft Money products on the market. Below is a list and
description of each.

MICROSOFT MONEY - Microsoft's base product addresses basic financial tasks: paying bills
online, bugeting, and investing. Also bundled with PC's and in banks' online checking packages.
Cost: $25

MICROSOFT MONEY DELUXE - It includes everything in Money 2000 Standard to help you
manage day-to-day finances, PLUS all the comprehensive investing, financial planning, and tax
saving tools you need to plan for long-term goals.
Cost: $64.95

MONEY 2000 BUSINESS & PERSONAL - combines Money 2000 Deluxe personal finance
features and business management tools. This edition is designed for sole proprietors to help
them manage both business and personal finances.
Cost: $94.95

MICROSOFT OFFICE SMALL BUSINESS EDITION - This suite includes Small Business
Financial Manager for Microsoft Excel 97, which lets Excel users analyze accounting data. Also
includes Micrsoft Word, Excel, Outlook, Publisher, Expedia Streets and MSN.
Cost: $500
Peachtree First Accounting - Designed for the small to medium-sized business. Supports a simple
'Point & Click' of the mouse and intelligent hot keys and shortcut keys for 100% keyboard use. Also
includes Windows-style drop down menus provide easy navigation throughout the program. The screens
Unit 9, Lesson 3: Quickbooks Record keeping
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include a status bar so you always know where you are in the program, the name of the company you are
working in, the current date and the current time. Can also support conversions from Quicken® 98/99,
and Quicken® Home and Business
Cost: $69.00
Ranch Vision - Menu driven, point & click Windows program with a Help system as well as technical
support. Integrates and analyzes the information you provide to create a computer model of your ranch
business. Your operation’s future economic, financial, and management conditions are then projected into
the future. You can perform "what if" scenarios such as: cost/benefit analyses.
Cost: $345
Standardized Performance Analysis (SPA) - The Standardized Performance Analysis (SPA) provides
ranchers an opportunity to analyze their ranch operation from both a production and financial side. SPA
facilitates the comparison of an operation's performance between years, producers, production regions
and production systems. SPA is intended to be an annual tool for the cow-calf producer.
This is an intensive workshop with the intent being ranchers completing the analysis for the 1999 calf
crop. Registered operators will be sent forms to organize data before the conference. Confidentiality of
producers will be maintained. Individual conferences will be held with producers. Each ranch will be
provided an assistant and a computer.
Cost:
$150.00 per ranch (includes the software, educational materials, meals, and refreshments).
$100 per ranch is available for ranches which have completed the analysis in the past.
StockPro - Interactive software that analyzes user-supplied information to determine net returns,
expenses, and break-even prices for a stocker cattle operation. Also generates budgets for stocker
operations.
Cost: $50.00
(Note: The BudPro package includes both the CropPro and StockPro programs.)
Quicken - Windows based financial software that allows you to record transactions in a check-type
format. There are many Quicken products out on the market. Below is a list and brief description of each.
QUICKEN BASIC - Intuit's entry-level product lets you balance your checkbook, pay your bills online, and
see where your money and investments are going. This version is also bundled with PC's, and offered in
banking software.
Cost: $90; upgrade,$70.
QUICKEN DELUXE - In addition to the basics, Deluxe provides information on mortgages and planning.
Unit 9, Lesson 3: Quickbooks Record keeping
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Cost: $60; upgrade, $40.
QUICKEN SUITE - This comprehensive pack comes with Quicken Deluxe as well as Quicken Financial
Planner 3.0 and Quicken Family Lawyer Deluxe.
Cost: $90; upgrade,$70.
QUICKEN HOME & BUSINESS - Think of this package as Quicken Deluxe, plus features for small
business-such as invoices and business reports as well as tracking of reimbursable expenses.
Cost: $90; upgrade,$70.
Quickbooks - Windows based financial software that allows you to record transactions in a check-type
format. Complete familiar forms such as checks and invoices onscreen.
QUICKBOOKS - Entry-level product that calculates sales tax, tracks records for income, payroll, and
sales tax, alerts you to make your quarterly and monthly tax payments, manages your payroll, accept
credit card payments, bank online, keep track of inventory, and generate graphs and reports.
Cost: $119.95
QUICKBOOKS PRO - All the features of Quickbooks but also allows you to track employee time, job
costing and invoicing, as well as integration with Microsoft Word and Excel.
Cost: $219.95
Unit 9, Lesson 3: Quickbooks Record keeping
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