Dairy Standard Chart of Accounts

Dairy Australia Chart of Accounts

Download the Dairy Standard Chart of Accounts as an Excel File (131KB)

Introduction

Whilst one of the main aims of a Standard Chart of Accounts is to drive consistency across the Australian dairy industry in how we discuss, describe, calculate and report farm business performance it also meets many other goals.

The Standard Chart of Accounts enables dairy farmers to manage the flow of financial information through their business and establish an efficient system for paying bills and complying with Australian tax regulations. Whilst ensuring tax compliance, the Standard Chart of Accounts can also be converted to management accounts with relative ease to enable farmers to make informed decisions in their businesses. The management accounts enable farmers to complete end of year and comparative analysis on their business by ensuring a consistent approach to the allocation of financial information and financial terminology used within the Dairy industry. It will also enable conversion to a regular cashflow and could be utilised for budgeting within businesses.

The Standard Chart of Accounts has not been established as a rigid tool to prescribe the exact setup of farm accounts on all dairy farms, it has merely been developed as a guide to the way a dairy farmer can keep financial records but, if used correctly, will give consistency in record keeping. As well as providing farmers with data to make informed financial and farm management decisions, the Chart of Accounts will allow farmers to effectively benchmark their business. The use of “benchmarks” by some sectors of the dairy industry can only be accurate if each business doing the comparisons have put their income and expenses in the same category in their financial recording system.