The Importance of Farm Financial Guidelines for Farm Operations
02/15/2023
In a recent blog post by Norman Brown, FBS Systems, he provides a concise and informative review of several aspects of the need for farm operations to use financial guidelines. The story summarizes key elements of the Farm Financial Standards Council, what it is, why it is important to farm operations and its impact on those operations.
In a recent blog post by Norman Brown, FBS Systems, he provides a concise and informative review of several aspects of the need for farm operations to use financial guidelines. The story summarizes key elements of the Farm Financial Standards Council, what it is, why it is important to farm operations and its impact on those operations.
Norman then lists Five Steps to Implementing these Farm Financial Standards on Your Farm Operation. They include:
1. Organize your records and financial data.
2. Create financial reports.
3. Consider your financial position.
4. Look at your cash flow.
5. Complete a financial analysis.
Far too many farm operations treat accounting as a hassle that takes them away from direct production activities, making it seem a less productive use of their time. By implementing some simple, basic accounting practices using these strategies an operation can see a significant return on investment.
The blog can be found at:
The article has multiple links that provide additional information on each of the Five Steps.
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Posted by:
Don Tyler
ASAC Board Member
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