The software features GAIA

Gestione Aziendale delle Imprese Agricole

Istituto Nazionale di Economia Agraria

INEA

the

new

accounting

methodology

for

business

management

of

farms

The software features GAIA

-Summary

•

Origins and choices

•

The characteristics of the procedure

•

The logic of records

•

Management accounting

•

Data quality control

The premises

and increased use of multifunctional

activities

More needs for managerial skills of farmers Lack of market software products targeted to the overall management of farms

Needs

• Perform effectively and promptly the institutional tasks of microeconomic surveys

• Project a software tool to meet the need for simplicity of use required by regular users

• Adapt the methodology to the rules of statutory accounts and IV EEC Directive and IASB (eg IAS 41)

• Adopt a comprehensive accounting system of double entry integrated with the traditional setting of the Budget Statement

• Meet cognitive needs of the agricultural economic research

• Meet the demand for knowledge of agricultural policies by national governments and regional

• Implement a data warehouse to extract the information collected quickly and efficiently

Objectives

• Integrate the knowledge needs of the agriculture with those of agricultural statistics

• Make comparable the economic performance of farms with those of other companies

• Promote the dissemination of accounting at farm level, encouraging the professional growth of

entrepreneurs

• Find the best match between the requirements of

simplicity required by users with those of precision

required by accounting rules

• Expanding the information framework of Italian FADN

• An efficient system of data collection

• Create a useful tool for the management of agricultural holdings

Integration of information

Italian FADN

Business services REA (Istat)

European FADN

Farm Structure Survey (SPA – Istat)

Recipients of GAIA

1. Technicians of FADN network, to rationally acquire required information from farms statistically representative

2. Farmers that take part or not in FADN to control the farm management

3. Agricultural extension services for the provision of tools for the management consulting farm

4. Agricultural education for training and professional growth of farmers

Features

• Strongly guided structure using the full potential of the Windows ® _{environment (user friendly)}

• Full integration of accounting data with farm’s techno-economic information

• Survey of management events using the administrative facts as a source of primary information

• Drafting of budget accounting both according to the statutory scheme and that reclassified INEA

• Flexibility and simplicity in use with the possibility to customize certain features

• Database compatible with main databases in

Operating Environment

• Development Tools

– MS Visual Basic 6, for basic module

– MS Visual Studio .NET, procedures for files management, cost

allocation process, quality control, advanced data extraction

– B.O. Crystal Report XI, reporting

– ComponentOne, for additional modules

• Database

– MS SQL Server 2005/2008: express version for end users, the

standard version for regional offices and national database

• Website

– Dreamweaver: website of GAIA

System resources

• Hardware configuration

compatible computer Intel Pentium Centrino Duo (2.0 GHz), 1 GB of RAM, hard disk with fast

access, laser printing, 17-inch monitor

• Operating environment

Windows XP (SP2), NT (SP5), 2000 (SP4), Vista, Windows 7, MS Internet Explorer 7 or Mozilla, Acrobat Reader 5 or higher, Internet connection ADSL (for updates activation)

The numbers of GAIA

• 30 types of accounting records, divided into 80 types of accounting transactions

• 280 accounts moved directly by user

• 300 types of agricultural machinery and equipment • 70 types of farm buildings

• 380 plant species and 6800 cultivars

• 60 species of terrestrial and aquatic animals divided into

100 categories and 290 animal breed

• 54 types of plant products (primary and processed) • 35 types of animal products (primary and processed) • 110 categories of technical equipment extra-farms • 400 types of government grants shared between

Logical input

1. Definition of farm context (enterprise – farm – center sub-farm)

2. Creating and updating of data sheet (direct and / or derived from technical management or accounting)

3. Technical Management of

a. farm land (plantations and crops)

b. farm labor (household, employee, seasonal worker)

c. stores (internal uses of agricultural products and business extra-farm)

d. animals (births, dead, slaughtering, entrusting, outstanding bi-monthly)

4. Management Accounting

a. income and Expense (with or without VAT, economic and financial, for farm sector)

b. Public supports (aid management and investment)

c. self-consumption, internal replacement, poultry farming, other financial transactions

5. Year-end accounting transactions

a. Gross margins (production processes of plant and animal, farm holidays)

b. Development in economy and extraordinary maintenance c. Accounting transactions at year end (accounting provisions, etc.)

Sequence input

Login to GAIA

Farm 

structures Farms codes list

Data sheet technical management handling accounting Costs sharing

Information sources

• Holding file (paper or electronic)

• Single application for CAP payment (national and

regional paying agencies);

• Membership application to Rural Development

Program

• VAT records (accountants or assistance center);

• Registers of fees for direct sales

• Register of animals

• Farm logbook

• Annual production plan of organic farming

Management accounting

• Petty cash book surveys:

– Incoming and revenues

– Espenditures and costs

– Self-consumption and internal replacement

– Financial transactions

– Final accounting transactions

• Records may refer to specific accounting documents (invoices, receipts, contracts, etc..) or other documents (payslips, bank receipts, applications for government grants, logbook, book stall, etc.).

The logic of data collection

• GAIA use double entry method to constantly verify data collection

(debits=credits), but the user doesn’t need to know the rules, just follow the sequence of data entry in the program.

• To correctly survey a fact of management it is necessary to have the following basic information:

– Data

– Sector of activity (agriculture or related activities)

– Type of transaction (eg. sale, purchase…)

– Generic object (eg. agricultural products, expenses of coltures)

– Specific object (eg. hay, grain, wine, cheese, …)

The sequence of data collection

1. Type of activity, date and references (heading)

2. Type of object, amount and quantity (first section)

3. Financial modality and amount (second section)

4. Checking and closing (final control)

• The input window follows this sequence and allows the user to move from one phase to another by pressing a confirmation button (or add) till complete the movement.

Quality Control

www.rica.inea.it