Year End Client Review
12/10/2020
Along with all the tax planning that is essential at the end of a business year, we should also be encouraging our clients to review key documents and consider creating strategies and documentation that ought to exist in a professionally run business. I say “ought” because the statistics reveal few growers and producers actually make the investment in these important areas of business.
During the 2019 ASAC National Conference in St. Louis, MO, Dick Wittman, Idaho financial consultant and farmer provided a summary of the Percentage of Adoption of Key Farm Management Proficiencies gleaned from an annual survey that has been performed for many years. The responses to the survey revealed that less than 33% of the surveyed producers set goals and had strategic plans, less than 33% had formal job descriptions, only 25% do performance appraisals, only 20% have standard operating procedures and 40% share records regularly with their employees.
Additionally, only 50% do cash flow budgets and track profit/cost centers, and only 25% track key ratios. Unfortunately, only 50% market their production knowing their actual production costs.
These are extremely important strategies, policies and documentation for any professional business to develop and utilize. I would add to the list that they need a succession plan, key performance indicators and employee policies.
As key advisors, we should be asking clients if they have these documents and encouraging their development if they are not in place.
What other key strategies, documents and management practices do you promote with your clients and how do you encourage their development and regular review?
Don Tyler
Tyler & Associates
The opinions and commentary are Don Tyler’s own. They are not necessarily the those of ASAC or its members.
Along with all the tax planning that is essential at the end of a business year, we should also be encouraging our clients to review key documents and consider creating strategies and documentation that ought to exist in a professionally run business. I say “ought” because the statistics reveal few growers and producers actually make the investment in these important areas of business.
During the 2019 ASAC National Conference in St. Louis, MO, Dick Wittman, Idaho financial consultant and farmer provided a summary of the Percentage of Adoption of Key Farm Management Proficiencies gleaned from an annual survey that has been performed for many years. The responses to the survey revealed that less than 33% of the surveyed producers set goals and had strategic plans, less than 33% had formal job descriptions, only 25% do performance appraisals, only 20% have standard operating procedures and 40% share records regularly with their employees.
Additionally, only 50% do cash flow budgets and track profit/cost centers, and only 25% track key ratios. Unfortunately, only 50% market their production knowing their actual production costs.
These are extremely important strategies, policies and documentation for any professional business to develop and utilize. I would add to the list that they need a succession plan, key performance indicators and employee policies.
As key advisors, we should be asking clients if they have these documents and encouraging their development if they are not in place.
What other key strategies, documents and management practices do you promote with your clients and how do you encourage their development and regular review?
Don Tyler
Tyler & Associates
The opinions and commentary are Don Tyler’s own. They are not necessarily the those of ASAC or its members.
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