Things have gotten tighter in agriculture in the last decade or so. Now more than ever, diligence pays when it comes to staying on top of your numbers. Lenders are asking for more financial data than they ever used to; it's even becoming more common for bankers to request monthly cash flow plans rather than simply annual ones.
While on the surface this might sound like a bit of a pain in the neck, if you've been consistently using standard bookkeeping practices, it's actually not too much additional work to put together a monthly budget-to-actual review. Regularly going through this process would help the operation stay on track toward its goals, assist in decision-making on capital purchases, and allow you to know where the farm stands financially at any given point during the year.
How does it work? Water Street Solutions Account Manager Jason Ladman explains to KRVN's Dewey Nelson below.