Managing Farm Financials
Managing money is hard for any business. But farmers typically have a hard time letting any money go! So, how can you keep a better handle on your farm financials with a few easy tips? Let’s talk about it.
Additional Revenue/Reduced Cost – If an opportunity exists to either make more money or spend less money, do it! If you aren’t exploring new opportunities in this area, you really should be. Sometimes just a little extra here and a little reduction there make a big difference on the bottom line.
Monitor and Analyze Your Financials – This seems like it should go without saying, but it’s a step easy to overlook. Take your projected financials (and yes, you should be doing projections) and compare them to your actual financials – and not just at the end of the year. It’s important to take a look at things throughout the year so that you can adjust if necessary. It’s easier to fix a problem before it escalates out of control.
Benchmark – Take your farm financials and compare them with other similar operations. Sometimes it can be hard to believe, but there might be somebody out there doing better than you! If you aren’t comparing, you can’t know where you can easily improve. Sharing financials can be scary, and it can be hard to fight the urge to keep them hermetically sealed! But, if you benchmark through a trusted group like FamilyFarms Group, it can be done without stress.
And always remember that it’s really hard to go broke if you aren’t losing money!
If you need some help, there are expert consultants at FamilyFarms Group. Our goal is not to take over in any of these areas, but to help you get a better handle on how to implement some of these practices. Contact us to learn about other ways to improve your operation.