Introduction

• Reliable and accurate data are necessary to narrow down the gap between planning and best performance.
• Such accurate data can provide the data on Input-Output Relations, inputs availability, assurance of marketing, soil fertility for crop allocation, etc. for improving the performance of farm.
• As a rapid development in agriculture and development of computer package for record keeping and feed formulation, a systematic and accurate farm records is helpful for the projection of successful plan and program for betterment.

Reasons for no recorded formal accounting system of data recording

1. The scale of farming system is small.
2. Most of the farmers are subsistence and not keeping the records of input purchase.
3. Illiteracy in recording and analysis.
4. All agricultural commodities are free from tax system.
5. Limited banks are supporting the farmers for financial point of view.
6. No realization of the importance of farm records keeping.

Advantages of Farm Records and Accounts

1. Means to higher income
2. Basis for diagnosis and planning
3. Way to improve managerial ability of the farmer
4. Basis for credit acquisition and management
5. Guide to better home management
6. Basis of conducting research in Agricultural Economics and production economics
7. Basis for government policies

Problems in Farm Accounting

1. Subsistence nature of farming
2. Farming is a laborious work
3. Triple role of Nepalese farmer
4. Illiteracy and lack of business awareness
5. Complicated nature of the agricultural business
6. Inadequate extension service
7. non-availability of suitable farm record books
8. Fear of taxation

Usefulness of Farm Records and Accounts

1. Management analysis and decision taking
2. Information about the existing resource pattern
3. Basis for farm credit and financing
4. Tools for share croppers
5. Acreage control
6. Basis for crop subsidies
7. Basis for conducting research in farm management