Financial Record Keeping
What is the Financial Record Keeping Programme (FRKP)?
The Financial Record-Keeping Programme (FRKP) offered by the Western Cape Department of Agriculture is responsible for assisting farmers with a well-functioning, complete and accurate financial record keeping system. It focuses amongst others to the recording/capturing of all production activities and financial transactions from production records and source documents summarised in the financial record keeping book, supplied by the participating projects, onto the accounting software in order to provide financial and management statements, based on sound accounting principles.
The Department of Agriculture Western Cape can advise and support you with your FRKP implementation plan.
Department of Agriculture Western Cape
The Department of Agriculture Western Cape, Agricultural Economic Services Programme, Production Economic Division started with the FRKP in 2006 to support the agricultural sector with the implementation financial record-keeping.
Objective of the FRKP:
Assessment of all agri-businesses that will be part of the Financial Record Keeping Programme and also identify and document gaps and areas of intervention. This will include updating the asset register and explaining financial statements to farmers. An asset register detailing the assets with the values (realistic market value and book value) will include the following:
- Vehicles, tractors and combine harvesters: description of the vehicle e.g. make, model/year, colour, registration number and VIN number
- Equipment: detailed description of the equipment e.g. make, model/year and colour
- Livestock: type e.g. cattle, sheep, goat pigs etc., branding/ identification code
- Collection of original source documents (e.g. invoices and receipts) from projects/farms and/or central point in each district via a reputable courier service. In order to facilitate the monthly capturing on an accounting software.
- On a monthly basis, capture the information from source documents on accounting software (Pastel software
- Produce management statements (income statement, cash flow statement and balance sheet) for each project/farm.
- At the end of the financial year, produce compiled financial statements (income statement, cash flow statement and balance sheet) for each project/farm business.
- Provide the following services on approximately 45 projects on electronic record keeping: VAT returns, UIF submissions, provisional tax returns, Income tax returns, compensation of employees as well as CIPC returns. Issuing and renewal of tax clearance certificates.
- Upon request, provide basic training to farmers and officials involved on Financial Record Keeping Programme as well as officials from Farmer Support and Development
- Provide feedback to farmers on their financial statements and results of financial analysis.