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TRACKING YOUR AGRIBUSINESS EXPENSES.



WHY YOU NEED TO TRACK YOUR BUSINESS EXPENSES? 


Due to the human nature, we find it more interesting pleasurable to focus on money coming into the business (cash flow) than how it is been spent. 

In business however, expenses are usually incurred during the course of production of goods and services.

Therefore failure to track your business expenses can lead to you short changing yourself.

Tracking or monitoring your Agribusiness expenses enables you as a business owner to capture all the cost incurred during the course of production of your goods and services from start to finish. 
It gives you the full picture of your cash outflow. 


This also allows you to know your TOTAL cost of production and eventually your actual cost price. As it is not enough just assume your cost price or even adopt your competitors cost price as your own. 


When you track your expenses,you will be able to fix the RIGHT selling price for your agricultural produce or product so that you will not only break even (that is recover your capital) but also make a profit.


HOW TO TRACK YOUR AGRIBUSINESS EXPENSES? 


1. Record your agribusiness expenses as often as they are incurred. 

2. Always collect receipts at the point of payment and  file them . 

3. Remember to note down agribusiness expenses incurred without a receipt. 

4. Ensure you value and record expenses covered by the use of your personal asset so that you can factor it into your cost of production. 


Benefits of tracking your agribusiness expenses.

When expenses are accurately monitored, you will be able to :

1. Identify the most expensive item or process that takes up the bulk of your running cost . So that you will be able to say whether it's the cost of feed or transportation  that takes up the bulk of your funds. 


2. Predict or project your agribusiness expenses over a period of time so that you won't be caught unawares particularly during your production cycle. 


3. You will be able to say with a level of certainty the exact amount you need to scale up or expand your business by twice or thrice of its size. 


4. You will be able to identify any discrepancies or theft in your system because you already have an established flow of your expenses. 

P. S: Since the word track means to follow or monitor, it is important to note that tracking your agribusiness expenses requires some level of discipline. 



Jumoke Ayeni 

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