Bookkeeping Is the Difference Between Farming and Running a Farm Business – IBM Bangis

…Says accurate records are critical to profitability, access to finance and long-term agricultural success

The Co-founder of Commodity.ng, IBM Bangis (Ibrahim Muhammed), has stressed the importance of bookkeeping and proper record keeping in agriculture, describing them as some of the most overlooked factors limiting the growth and profitability of many Nigerian farms.

Speaking during a TikTok podcast titled “Farm and Book Keeping,” Bangis said many farmers focus almost entirely on production while paying little attention to documenting their financial activities, a practice he believes continues to prevent many agricultural businesses from reaching their full potential.

According to him, farming should no longer be viewed as merely planting and harvesting crops but as a business that requires the same level of financial discipline as any successful enterprise.

“A farmer who doesn’t keep records is operating blindly. You may harvest hundreds of bags of maize or produce thousands of crates of eggs, but without proper bookkeeping, you may never know whether you actually made a profit,” he said.

Bangis explained that bookkeeping enables farmers to understand the true cost of production, monitor expenses, evaluate profitability and make informed business decisions.

He noted that many farmers unknowingly sell their produce below production cost because they fail to calculate all the expenses incurred throughout the farming season.

“Every expense matters,” he explained. “Seeds, fertilisers, herbicides, labour, transportation, irrigation, machinery repairs, storage, packaging and even fuel should all be recorded. These costs determine whether your business is making money or losing it.”

The agribusiness entrepreneur said proper record keeping allows farmers to determine how much it actually costs to produce each commodity, making it easier to negotiate fair prices and avoid panic selling during harvest periods.

According to him, farmers who understand their production costs are better positioned to respond to market fluctuations and protect their profit margins.

Bangis also highlighted the role of bookkeeping in helping farmers prepare realistic budgets for future production cycles.

By reviewing previous financial records, he said farmers can accurately estimate seed requirements, fertiliser needs, labour costs, machinery expenses and expected revenues, reducing waste and improving financial planning.

He further explained that production records are equally important.

Farmers, he said, should document planting dates, seed varieties, fertiliser application schedules, pest outbreaks, rainfall patterns, harvest dates and yields.

For livestock farmers, he recommended maintaining records on breeding, vaccinations, feed consumption, mortality rates, egg production, milk yield and weight gain.

“Good production records help farmers identify what works and what doesn’t. Agriculture should be driven by data, not assumptions,” Bangis stated.

Speaking on agricultural financing, the Commodity.ng co-founder observed that one of the major reasons many farmers struggle to access loans and investment is the absence of credible financial records.

According to him, financial institutions, development agencies and investors increasingly require evidence that farming operations are profitable and well managed before providing support.

“No serious investor will put money into a business that cannot account for its income and expenses. Good bookkeeping builds credibility,” he said.

Bangis added that proper records also improve cash flow management by helping farmers monitor income, expenses, debts and outstanding payments.

He explained that many farms experience financial difficulties despite generating reasonable income because operators fail to track how money moves within the business.

The agricultural advocate further encouraged Nigerian farmers to embrace digital tools that simplify record keeping.

He said mobile applications, spreadsheet software and farm management platforms now make it easier than ever to maintain accurate records, while even a simple notebook remains effective if updated consistently.

According to him, technology is making bookkeeping more accessible to both commercial farmers and smallholders.

Bangis maintained that agriculture is becoming increasingly data-driven and that farmers who fail to document their operations risk falling behind in a rapidly evolving industry.

He noted that proper records not only improve profitability but also support better decision-making, tax compliance, inventory management and long-term business growth.

Commodity.ng Insight

The message from IBM Bangis reinforces a growing reality within Nigeria’s agricultural sector: successful farming is no longer determined solely by hard work in the field but by effective business management.

As agriculture becomes more commercial and technology-driven, accurate bookkeeping is emerging as a competitive advantage. Farmers who maintain detailed financial and production records are better positioned to access financing, attract investors, negotiate better prices, manage risks and expand sustainably.

For Nigeria to build a resilient agricultural sector capable of improving food security and creating wealth, financial literacy must become just as important as agronomic knowledge. Every successful farm should operate like a successful business, and every successful business begins with accurate records.