Tax Preparation

Atascadero Tax Accountant publishes tax preparation suggestions for farmers and ranchers

California and state tax laws offer unique benefits to agricultural businesses

Farmers and ranchers face some unique challenges when it comes to preparing and filing taxes. Working in harmony with the seasons and the cycles of nature does not always offer the same opportunities for financial accounting as for other types of business. North County Tax & Accounting’s Atascadero accountant posted some key tips to make bookkeeping and payroll easier for farmers and ranchers.

It is not always possible to devote a few (or more) hours a week to recording records when it is time to plant, harvest, or raise livestock requires attention. The weather, unexpected injuries to the price bull or another animal, unplanned vet visits, crop failures, regional natural disasters, the breakdown of expensive farm equipment, a barn roof in need of repair, and unexpected drops in crop prices are just some of the events that must occur in operating time and income effects. When you comply with farm tax laws and do payrolls, bookkeeping becomes another chore no one wants to do when the 18-hour day ends at midnight in the middle of a storm.

  • The first step in simplifying bookkeeping and bookkeeping is to set up separate bank accounts for business expenses and personal expenses. Regularly deduct your own wages from the farm account and save it in your personal account. Let an experienced accountant like Atascadero’s tax expert advise you on the best way to pay yourself. It is important to separate business and personal expenses.
  • Using a payroll service to pay employees can be one of the most cost-effective decisions a farmer makes. Everyone gets paid on time, and the hours spent recording payrolls can be better used in other areas.
  • Hire a professional accounting service. Chances are, most farmers or ranchers already use a registered Certified Public Accountant (CPA) to fill out and file business taxes anyway. Talk to the accountant about the best way to keep track of income and expenses. It can be so easy to jot down a note on a receipt before handing it over to the accountant for record.
  • Be organized. Easily accessible, clearly labeled file folders for storing receipts and invoices are one of the best ways to get organized. To avoid overwhelming clutter, add a files folder labeled “TO FILE” if the day was too long to get to the paperwork.
  • Use accounting software like QuickBooks®. Atascadero’s accountants provide QuickBooks services, cloud accounting, and payroll that make accounting tasks easier and more accurate.

California and state tax laws offer unique benefits to agricultural businesses. It is important to get knowledgeable tax advice and accounting services from someone who understands the specifics of running a farm or ranch. While local farming offices and farming organizations keep their members informed of changes in tax laws, who has the time to thoroughly read and understand the implications of those changes? Relying on a trusted expert is another step towards security and success.

Robert S. Borish, the Principal CPA at Atascadero Tax & Accounting, has over 30 years of accounting and tax experience and has run his own accounting firm for over 20 years. Atascadero Tax & Accounting supports clients in banking and finance relationships, tax planning, payroll and tax preparation. Financial services include tax planning, estate planning, retirement planning, investments, life insurance, and more.

“Our customers are our most important asset,” said Borish. “We work to understand each customer’s financial situation. Our specialized staff provides information and services of the highest quality. We ensure that every customer is served by the expertise of the entire company. “

Atascadero Taxes & Accounting

5905 Capistrano Ave, Ste A

Atascadero, CA 93422

(805) 466-7121

Share articles on social media or via email:

Related Articles