2013 LOGAN COUNTY FARM OUTLOOK MAGAZINE LINCOLN DAILY NEWS.com October 25, 2013 Page 43
“The thing that needs to be identified more than
anything is that we now have to know where we
are financially at all times,” Klemm said. “And
that can be accomplished in many ways, but it
is the details that are the important things.”
In addition to grain production, the
Klemms have a cow/calf livestock
operation.
Back in the day, the software of the
grain farmer consisted of a ledger
book, a No. 2 pencil and some
type of container to hold all the
receipts, check stubs, scale tickets
and fertilizer bills. But time has
changed everything from the means
in which we keep records to the
records we keep.
“I can remember the two weeks
or so, growing up as a child, my
dad’s record keeping in January
or February,” Klemm said.
“Everything was laid out on the
dining room table in appropriate
piles, and you didn’t walk through
the dining room quickly for fear
of disturbing the piles. And it
worked!”
Klemm noted that in his business
he still sees the farmer with his
ledger and stack of receipts, and
as long as the records are accurate
and honest, it really doesn’t matter
to him as a tax professional how
the producer came up with his
numbers.
But using computer technology can
make things easier for the producer
and can also add some interesting
and vital twists to accounting and
accountability.
“The thing that needs to be
identified more than anything is
that we now have to know where
we are financially at all times,”
Klemm said. “And that can be
accomplished in many ways, but it
is the details that are the important
things.”
Klemm said the pencil-and-paper
method is still fine if it works for
the producer. The advantage with
the computer is the capability to do
more detailed analysis quickly.
“When I write a check on the
computer, it automatically changes
my bank balance, my cash flow,
my inventory and more. For the
producer, this is more conducive to
keeping a constant, accurate detail
of the farm finances,” he said.
Another key to managing the farm
is the technology in the combine or
tractor as the farmer moves through
the field. For tax purposes it has
