Checking on costs and returns enables the farmer to

Checking on costs and returns enables the farmer to ascertain the immediate financial position of the farm. When a farmer keeps track of the costs and returns of the farm, they can determine the profit or loss made within a specific period. This information helps the farmer to know the immediate financial position of the farm. They can know how much money they have made and the cost incurred in producing the crops or rearing the animals. The farmer can use this information to make informed decisions on the best practices that will ensure profitability on the farm. It also enables the farmer to know when there is a need to take corrective measures to avoid running at a loss.