Managing the finances of a farm isn’t just about tracking income and expenses. You’ve got livestock, crops, equipment, labor costs, and maybe even government subsidies to keep track of, all while dealing with unpredictable factors like weather and market prices. A farmer I know struggled with the same issues, using a mess of spreadsheets and paper records to manage it all. That’s when we decided to find bookkeeping software tailored for farms that could handle the complexity without overwhelming him.
Farmers need software that goes beyond basic accounting. You’re looking for tools that can handle inventory tracking, farm-specific tax forms, equipment depreciation, and production costs—all in one place. Below are the top solutions that can make managing your farm’s finances much easier.
Key Features to Look For in Farm Bookkeeping Software:
Before jumping into the best options, let’s talk about what farm-specific accounting software should include:
- Crop and livestock tracking: Ability to track costs and income from different farming activities (e.g., crops, livestock, dairy).
- Inventory management: Track supplies, feed, equipment, and harvested products.
- Expense and revenue tracking: Monitor expenses like fuel, seed, labor, and categorize income from crop sales, livestock, subsidies, etc.
- Depreciation of assets: Track the depreciation of equipment, vehicles, and buildings.
- Payroll for seasonal workers: Manage wages for temporary farmhands or year-round employees.
- Tax preparation: Support for farm-specific tax codes, government subsidies, and other deductions.
- Reporting: Generate detailed reports that help track profitability per field, crop, or herd.
1. FreshBooks
FreshBooks is an easy-to-use software that works well for farmers, especially those with small-to-medium operations. Its intuitive interface is perfect if you’re new to bookkeeping or simply want a more streamlined way to manage finances.
Why It Works for Farmers:
- Expense tracking: You can categorize and track expenses by crop, livestock, or other farming operations.
- Invoice and payment management: Send professional invoices for farm products, and track payments received.
- Project-based reporting: You can set up projects for different fields, crops, or animals to track profitability at a granular level.
- Mobile-friendly: Manage your books while you’re out in the field with a fully functional mobile app.
- Farmers’ tax deductions: Although not specific to farming, FreshBooks helps you organize expenses for easier tax prep, including things like fuel, machinery, and property maintenance.
FreshBooks is ideal if you’re a farmer looking for something simple yet powerful. It’s especially suited for those who sell directly to customers or need to track individual farming projects.
2. QuickBooks Online – Agricultural Accounting
QuickBooks Online is a trusted name in accounting, and its flexibility makes it a strong option for farmers. You can easily customize it for farm management by setting up different classes or locations to track different crops, fields, or livestock operations.
Why It Works:
- Job costing and tracking: Track income and expenses by crop, livestock group, or even individual fields.
- Customizable: Use classes to track various segments of your farm, like crops vs. livestock, or specific products like dairy vs. meat.
- Payroll integration: Easily manage wages for permanent or seasonal workers.
- Reporting: Generate reports that give you a clear breakdown of your farm’s performance, including profitability per field or animal group.
- Tax-ready: Provides detailed financial reports that make it easier to prepare for tax season, including asset depreciation and government subsidies.
QuickBooks is a great option if your farm operation is more complex or larger, as it can handle multiple income streams and detailed tracking needs.
3. FarmBooks
FarmBooks is designed specifically for farmers, which means it comes with all the tools you need for farm management right out of the box. It’s perfect for tracking the unique expenses and revenues associated with farming.
Why It Works:
- Farm-specific features: Track crop and livestock income, expenses, equipment depreciation, and more.
- Government reporting: Built-in support for farm-specific tax forms and reports, including IRS Schedule F.
- Inventory management: Track supplies, feed, fuel, and harvested products.
- Payroll management: Manage payroll for full-time and seasonal workers.
- Asset management: Track farm equipment, depreciation, and major expenses tied to your farm’s operations.
FarmBooks is one of the few software options that’s built specifically for the agriculture industry, making it perfect for small-to-mid-sized farms with specialized accounting needs.
4. Xero
Xero is another excellent option for farmers, offering flexibility similar to QuickBooks but with a simpler, more intuitive interface. It’s a great fit for farmers who want detailed financial tracking without getting bogged down in overly complex features.
Why It Works:
- Customizable tracking: You can set up different farm units (crops, livestock, etc.) and track income/expenses for each.
- Bank reconciliation: Easily sync with your bank and automatically reconcile transactions.
- Mobile access: Xero’s mobile app makes it easy to manage your farm’s books from anywhere.
- Payroll integration: If you employ workers, Xero has built-in payroll management tools.
- Inventory management: While not farm-specific, Xero’s inventory features can help you track supplies, feed, and more.
Xero is a good choice if you want a simple, cloud-based accounting solution with a clean interface and solid financial reporting.
5. Wave Accounting
For farmers who are just starting out or operate on a very small scale, Wave Accounting is a free option that offers solid bookkeeping features. While it lacks some advanced farm-specific tools, it’s perfect if you need basic income and expense tracking.
Why It Works:
- Free to use: No monthly fees for its core accounting features, including invoicing and expense tracking.
- Simple invoicing: Easily send professional invoices for farm products or services.
- Basic expense tracking: Track farm-related expenses, though it may lack the detailed categories needed for complex operations.
- Tax preparation: Basic reporting tools help you prepare for tax season, though it may not handle farm-specific tax needs as well as other options.
Wave is ideal for very small farms or hobby farmers who need a budget-friendly way to manage their finances.
Final Thoughts: Why FreshBooks is the Best Option
For most farmers, FreshBooks offers the best balance of simplicity, functionality, and affordability. It’s incredibly user-friendly, and its ability to track expenses by project makes it perfect for farmers who want to know the profitability of each field, crop, or herd. If you’re managing multiple income streams from both crops and livestock, or if you sell directly to customers, FreshBooks has everything you need to stay on top of your finances.
If you need more advanced features like farm-specific tax forms or detailed job costing, QuickBooks Online or FarmBooks are excellent alternatives. But for straightforward bookkeeping that can grow with your farm, FreshBooks should be your first choice.