When you add a balance sheet account for something your farm owns, Ambrook asks you to choose an account type. The type you pick controls where the account appears on your balance sheet and whether you can set up a depreciation schedule for it. Use this page to find the right type for common farm assets, then follow the links for setup.
Before you start: is it an asset?
Not every purchase belongs on your balance sheet. Items that last more than a year and cost more than your capitalization threshold are usually recorded as assets. Everyday supplies, repairs and small tools are usually expensed.
If you're not sure, see When to Capitalize vs. Expense a Purchase first.
Which account type to choose
Farm asset | Account type | Depreciation schedule available? | Notes |
Farmland, pasture, timberland, building lots | Land | No | Land isn't depreciated. |
Barns, machine sheds, shops, grain bins, silos, greenhouses, livestock facilities, improvements | Structure | Yes |
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Fencing, drainage tile, irrigation systems, wells, ponds, roads | Structure | Yes | Ambrook groups land improvements under Structure. Your accountant may use a different tax class. |
Tractors, combines, implements, sprayers, balers, skid steers, ATVs and UTVs | Equipment | Yes | Equipment includes machinery and non-road vehicles. |
Shop tools, computers, office equipment, larger hand tools | Equipment | Yes | Group small items into one account (see below). |
Pickups, grain trucks, semis, stock and flatbed trailers | Vehicle | Yes | For road vehicles used to haul or transport. |
Breeding stock, dairy cows, draft animals | Animals | No | Track depreciation on purchased breeding stock manually. See the livestock articles below. |
Market livestock (feeders, hogs or lambs raised for sale) | Inventory | No | Only if you track livestock inventory on your balance sheet. |
Stored grain, hay or other harvested crops held for sale | Inventory | No |
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Co-op equity, retained patronage | Investment or Other Long-Term Asset | No | Confirm with your accountant. |
Stocks, bonds, CDs, brokerage accounts | Investment | No |
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Prepaid expenses, deposits, amounts owed to you | Other Current Asset | No |
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Tip: Depreciation schedules are only available for Equipment, Vehicle and Structure accounts. Turn on Track Book Depreciation when you create the account.
One account per asset, or grouped?
Create a separate account for an asset when:
You'll depreciate it on its own schedule.
You might sell or trade it in on its own.
It's financed with its own loan.
Group items into one account when they're small, similar and bought or retired together, such as "Shop Tools" or "Fencing – 2024 improvements."
Ambrook doesn't support sub-accounts. Use a consistent naming pattern so related accounts sort together, for example "005 - JD 8R 410" and "006 - Kinze planter."
What to consider before setting up
When you got the asset. Assets you owned before your books start date are set up differently from ones you buy afterward. See the next-steps table below.
Book value vs. tax value. Ambrook tracks your farm's books. Your tax return may use different depreciation (for example, Section 179 or bonus depreciation). Decide with your accountant which values to use, and be consistent.
Loans. If the asset is financed, you'll also need a loan account. The loan and the asset are separate accounts.
Personal use. Vehicles or buildings used partly for personal purposes may need only the farm-use share recorded. Ask your accountant.
Leased or rented equipment. Equipment you lease or rent usually isn't your asset. Record the payments as an expense. Land bought on a contract is different; see Land Contracts below.
Livestock. Breeding animals and animals raised for sale are handled differently. Read the livestock articles before setting up livestock accounts.
How to add the account
On the Accounts page, select the arrow next to New Account, then choose New Balance Sheet Account.
Choose the account type from the table above.
Enter an Account Name, Starting Date and Starting Balance.
For Equipment, Vehicle and Structure accounts, turn on Track Book Depreciation if you want Ambrook to calculate depreciation. See Setting Up a Depreciation Schedule.
Select Save.
The Starting Balance depends on whether you owned the asset before your books start date. See the articles below for what to enter.
Where to go next
Your situation | Read this |
I owned the asset before I started using Ambrook | |
I'm buying a new asset, paid in full or with a loan | |
I want Ambrook to calculate depreciation | |
I want to track depreciation myself | |
I'm trading in equipment | |
I have livestock | |
I want an overview of balance sheet accounts |
FAQs
What if an asset could fit more than one type?
Pick the type that matches how you use it and whether you want a depreciation schedule. For example, a UTV used only on the farm fits Equipment. Be consistent across similar assets, and check with your accountant for tax treatment.
Can I change an account's type later?
Yes. Open the account and select Account Type in the Details section.
Should I set up every tool and small item?
No. Items below your capitalization threshold are usually expensed. Group the rest where it makes sense.