Farm Financial Management FAQs
Farm financial management is a comprehensive process that involves planning, tracking and analyzing financial resources to ensure profitability, sustainability and stability of operations. Effective management includes a robust accounting program focused on budgeting, cost control, cash flow management, projections, and informed investment decisions. Armed with accurate financial information, farmers can make important decisions about:
- investing in crops and livestock,
- managing debt,
- maximizing profits and
- the pros and cons of loans and government programs.
AgriBuilder creates the most value for agricultural businesses by integrating:
- intuitive accounting software (Xero)
- seamless and actionable farm management software (Figured) and
- ongoing advice and support from seasoned agriculture financial consultants.
A robust farm accounting program helps farmers manage finances, expenses and income while seamlessly integrating with your farm management system. In addition to these necessities, your farm accounting software must help you streamline the process for annual tax filings. Check out these common signs that your accounting system is broken.
An effective farm accounting process delivers updated financial reports that empower decision making. There are three standard financial statements including the balance sheet, income statement and statement of cash flow. The balance sheet conveys details about the farm’s assets, liabilities and overall net worth. The income statement reports revenues and expenses over a specific period of time, and the cash flow statement highlights the movement of cash.
Adams Brown regularly reviews financial reports with agriculture clients to monitor operations, assess profitability, identify trends for planning and make informed decisions. Together, we also review:
- accounts payable and receivable,
- budget versus actual,
- break-even analysis,
- cost of production,
- crop gross margin,
- depreciation schedules,
- inventory breakdowns by field and/or crop
- market value balance sheet and
- tax projections.
A holistic approach to reviewing your financial and farm management data ensures your ability to make sound business decisions for your farm while planning for future initiatives, investments and goals.
Additional farm financial management insights:
Understanding your farm’s value is important for various reasons, ranging from financial planning to strategic decision-making. Whether you are buying, selling, planning your estate or evaluating operational success, knowing what your farm is worth can provide critical insights to help you achieve your goals. A thorough farm valuation will help you conclude the true value of your farm.
Map of Leoti (KS)
About Leoti (KS)
Leoti, Kansas, is a town located in Wichita County, nestled in the western part of the state. Surrounded by the vast prairies and open spaces of the Great Plains region, Leoti is an agricultural hub known for its thriving farming and ranching activities.
Crop farming plays a significant role in Leoti’s agricultural landscape. The fertile soil and favorable climate provide optimal conditions for cultivating a variety of crops. Wheat, in particular, is a major crop grown in the area. Fields of golden wheat stretch across the landscape, swaying in the gentle breeze, as farmers diligently tend to crops. Wheat is sown in the fall, taking advantage of the region’s mild temperatures and harvested in the summer, marking a period of bustling activity as farmers gather their yields.
In addition to wheat, other crops like corn, sorghum and soybeans are also cultivated in Leoti. These crops contribute to the region’s diverse agricultural output and provide farmers with multiple avenues for income generation. The vast fields of corn, with their towering stalks and abundant ears, are a testament to the town’s commitment to feeding the nation and supporting the local economy.