Difficulties in the agricultural sector for the accounting registration of labor liabilities

Since the beginning of time, man has always felt the need to know and manage resources of both economic and financial nature, in view of this need, the various sciences in the administrative, financial and accounting areas arise, including all those that may govern any economic activity

However, agricultural enterprises do not escape from this perspective, since in some cases producers do not see themselves as businessmen, and in many cases the producers themselves underestimate the importance of the proper management of resources, since most of them focus the control of their production units only on making notes, without taking into account the importance of financial information and the fulfillment of labor duties.

For this reason, in most companies, in order to measure the labor liabilities and the corresponding expenses, projections are made where new salary increases, inflation, employee benefits and the traditional statutes for labor benefits are foreseen, which causes a deficient management of economic resources, poor planning and considerable losses, which are evident when analyzing the financial information of previous fiscal years with the current fiscal year.

Undoubtedly, the agricultural sector is one of the sectors that has had the most problems in recent years due to various causes, both economic and environmental, but especially the lack of support, which has affected the finances of these companies, being evident in the accounting reports.

Under this approach, there is the need to promote financial measures in the organizations that allow them to reach the proposed goals, based on the accounting information systems, which allow to know critical points that are presented within the companies.

It should be noted that one of the major concerns of the owners of the companies is concentrated in the commitments arising from labor obligations, commonly known as labor liabilities, because they have a strong impact on the information of the financial statements, noting the significant increase of this commitment that must be canceled at the end of the employment relationship.

Likewise, the problem that is most intensified in the area of labor liabilities is due to the adjustment of uncertain figures in comparison with the dates on which a fiscal year ends, variations occur in the determination of the calculations of labor obligations with the last salary earned by the worker, the retroactive payment and the time or date of the termination of the labor relationship.