You can use these simple accounting tips for horse owners to exactly determine how much money your horse is costing your -or- how much money is required to have a horse. If you own a horse then you should think about keeping records on exactly how much your horse costs. If you dare. If you are buying, selling or even having a horse for pleasure some simple accounting tips can make the difference between having enough money and selling that horse
What is Accounting?
Accounting is simply identifying how much money is being made, spent or flushed down the drain. These simple accounting tips for horse owners are a valuable tool to help you understand where your money is going and where your money will be or should be spent. It encompasses the financial activities of your horse related endeavours.
These accounting tips for horse owners will give you some necessary tips and tools to start and maintain an easy and effecient accounting system for your horse business or any other business.
3 Basic Accounting Tips For Horse Owners
Keep Accurate Records
A fancy ledger is not required. Record all your transactions. This means from laying down cash for your riding lessons to the money spent for entry fees and travelling to horse shows. All financial transactions should be recorded on a separate line in a note book or ledger.
Your ledger can be a spiral bound note book or a special accounting ledger. It doesn’t matter. All what matters is all transactions be recorded.
Expenditures including veterinary, insurance, equipment should also be recorded. By recording expenditures and income you will see at a glance where your money is being spent and where your money is coming in from.
Create a Budget
Most horse owners do not have a budget and do not know where their money is being spent. By doing step 1 – Keep Accurate Records – a budget will help horse owners from over spending.
By using these accounting tips for horse owners and creating a budget, it will help but the horse owner in control of their spending rather than just spending willy nilly on things you may not need.
Keep track and follow your spending. Reviewing your budget on a weekly basis will help you to understand your actual expenses and reduce spending.
Get Basic Bookkeeping Skills or Get an Accountant
If you are having difficulty recording your financial expenditures and income do not be afraid to get help by enrolling in a local college or school accounting course. Bookkeeping will help you understand how much and where your money is being spent.
If you have a small business or growing your horse business getting a professional bookkeeper or accountant can save you money in the long run. They will know the ropes and understand how to save you money when it comes to tax time.