QuickBooks Tools for Value-Added Producers
If you make salsas, jams, sausages, or a similar type product, you’re creating a value-added product. You are taking your raw ingredients (tomatoes, fruit, chilies, pork, etc…) and adding value to them so that you can sell them at a higher price.
Value-added products can increase the diversity of a farm (add in new kinds of resiliency) as well as increase the overall profitability. Instead of earning, say $4/pound for tomatoes, you can earn $12 because you converted it into salsa.
When you have value-added products, you have more things to track.
- you have a different kind of cost of production from the farm operation that requires a different kind of tracking,
- you have new sales to track so you know which products sell and which don’t, and
- there’s an interplay between the farm business and the value-added business and you want.
In this video course, we’ll show you how to use QuickBooks to answer these questions:
- How much are you selling of each product?
- What is your cost of production?
- Is your value added product adding to your bottom line.
- How do you record “selling to yourself” to account for farm products that are utilized in your value-added products.
Specifically, we’ll show you how to use:
- Products/Services (Items) to track sales and expenses
- Which reports you need to run
- How to create internal sales from the farm to the kitchen so you can easily track each enterprises profitability.
