This easy-to-read publication provides an introductory understanding of farm financial records, no matter what type of crop or livestock enterprise you operate. The authors walk you through the key elements of each farm financial statement and what these statements tell you. Even if you do not personally maintain your financial records or produce your financial statements, it is important that you understand what these records and statements are telling you, so you can make more informed decisions and better manage your farm business.
While many farm businesses file their income tax and government reports using the cash method of accounting, this publication will explain the benefits of also preparing, or having prepared, your financial statements on an accrual basis. Accrual accounting will allow you to better control and do a more meaningful analysis of your business through financial statements, ratio analyses, comparison of your farm business today to previous years and to benchmark farms in the industry.
This publication is appropriate for beginning farmers, more experienced farm managers, agricultural university and college educators, farm advisors, agricultural extension personnel, lenders and agriculture students.