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In any business enterprise managers always make a decision, with lots of consideration to its consequences and they increasingly insist on to seek out relevant and accurate financial information so as to minimize risk of incorrect decision. Farm Accounting (Agricultural Accounting), which is the art and the science of recording farm business transactions in accounting books in a regular and systematic manner, provides financial information with regard to their nature, extent and financial performance so as to make the farm industry community and others have informed decision. Proper accounting system is significantly important for the success of any type of business enterprise. The primary objective of this research is to indicate the supreme importance of agricultural accounting. The study has a paramount importance for policy makers, internal revenue authority, Universities and others who have interest on the subject matter. Moreover, this is important for those who want to undertake research on the subject.