Maintaining SAE Records

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MaintainingSAERecords
Modified by Georgia Agricultural Education
Curriculum Office November 2005
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Objectives

• Define terminology and explain the Virginia SAE
  Recordbook
• Open and close out a record book
• Develop an SAE budget including an
  entrepreneurial enterprise
• Develop expense and income statements
• Develop and maintain inventory and depreciation
  schedules
• Develop and maintain net worth statement
• Develop and maintain other records

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Why Keep Records?

• Income tax reporting
• Social security tax reporting
• Budgeting
• Credit planning
• Cash flow analysis
• Management decisions
• Applying for awards

4
What Records Are Needed

• Personal information, plans, goals
• Entrepreneurship agreement
• Enterprise record
• Goals
• Plans
• Practices
• Budgets (not found in VA Recordbook)

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Records Needed (cont.)

• Expenses
• Income
• Placement plans
• Monthly work experiences and wages
• Annual placement summary
• Other income

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Records Needed (cont.)

• Summary of SAE
• Inventory
• Net worth statement
• Leadership activities
• Awards
• FFA
• Other
• Teacher SAE supervision

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Opening the Recordbook

• Personal Information (pg 5)
• Enterprise Programs (pg 5)
• Farm production entrepreneurial enterprises
• Non-farm entrepreneurial enterprises
• Placement (pg 5)
• Productive enterprise agreement (pg 6)
• Farm production entrepreneurial enterprises
• Non-farm entrepreneurial enterprises

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What is a budget?

• A plan for how money will be made and spent
• An estimate of inputs and capital needed
• An estimate of production and income expected
• An estimate of potential profit or loss

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Who uses budgets?

• Governments
• Agencies
• Schools
• Businesses
• Farms
• Families
• Individuals
• Entrepreneurs

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Where is budgeting information found?

• Efficiency factor records
• Records from previous years
• Market reports
• Input from others in the same business
• Experts in the field
• Cooperative Extension Service

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Developing a Budget (Expenses)

• Forecast expense items required
• For fiscal year
• Break down by month
• Estimate cost of each anticipated expense item
• For fiscal year
• Break down by month

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Developing a Budget (Income)

• Forecast income items that will result
• For fiscal year
• Break down by month
• Estimate income from each income item
• For fiscal year
• Break down by month

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Developing a Cash Flow Forecast

• Record beginning cash status
• Record anticipated expenses monthly
• Record anticipated income monthly
• Estimate net cash flow monthly
• Estimate cash status monthly

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Recording Expense Items

• Date
• Item Description
• Quantity and Unit
• Unit Price
• Cash Expense
• Non-Cash Expense
• Total Cost
• Allocate among enterprises

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Recording Income Items

• Date
• Item Description
• Quantity and Unit
• Unit Price
• Cash Income
• Non-Cash Income
• Total Income
• Allocate among enterprises

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Maintaining Inventory Records

• Real Property
• Date Acquired
• Purchase price OR actual value on date acquired
• Value today
• Capital Equipment
• Date Acquired
• Purchase price OR actual value on date acquired
• Value today

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Special Inventory for Ag Production SAE

• Breeding livestock
• Date Acquired
• Purchase price OR actual value on date acquired
• Value today
• Crops in storage, value today
• Production supplies on hand, purchase cost
• Machinery equipment
• Date Acquired
• Purchase price OR actual value on date acquired
• Value today

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Special Inventory for Ag Bus Entrepreneurship SAE

• Machinery equipment
• Date Acquired
• Purchase price OR actual value on date acquired
• Value today
• Product on hand for sale, retail value
• Production supplies on hand, actual cost

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Maintaining Depreciation Schedules

• Date Acquired
• Purchase price, actual value on date acquired, or
  basis cost
• Previous depreciation
• Value today of
• Buildings
• Equipment
• Breeding livestock

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Income Analysis

• Expenses
• Cash expenses
• Non-cash expenses
• Depreciation
• Income
• Cash receipts
• Non-cash receipts
• Income Expenses Net Income
• Net Income share Student Net Income (SNL)
• SNI / Hours Self Labor Income per Hour (IPH)
• IPH Min Wage Profit (Loss) per Hour for
  Enterprise

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Building a Net Worth Statement

• Assets
• Cash in checking
• Cash in savings
• Cash value of insurance
• Value of stocks, bonds
• Accounts receivable
• Value of real property
• Value of business inventory
• Value of personal property

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Net Worth Statement (cont)

• Liabilities
• Loans
• Mortgages
• Credit card balances
• Other unpaid bills

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Net Worth Statement (cont)

• Assets Liabilities Net Worth
• Net Worth Dec 31 Net Worth Jan 1 Net Gain
  (or loss) in Net Worth

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What records are necessary?

• Preliminary Materials
• Budgets
• Cash Flow
• Depreciation
• Inventory
• Income
• Expense
• Income Analysis
• Placement Records
• Net Worth

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Seems Like a Lot, BUT

• Records are necessary to
• Make decisions
• Pay only appropriate taxes
• Operate a profitable business
• Determine profit or loss
• Stay out of jail