Accounting Boot Camp
Today, the Farm Financial Standards Council is doing an accounting boot camp in St. Louis for farmers who want to get additional understanding of how to use accrual accounting in their farm operations. Accrual accounting does a much better job of representing your actual farm operation and in most cases even if you do not use accrual accounting, your banker does. The banker will normally spread your financial information incorporating fair market value of crops on hand, major prepaids and accruals, etc.
I would highly recommend that farmers explore using accrual accounting. With lower expected prices over the next few years, knowing your true financial situation is even more important. If you will be at the accounting boot camp, please stop me and say HI.
I will be doing both a joint presentation with Todd Doehring from Centrec Consulting on understanding Farm Financial Statements and then will present a section on what are accrual transactions and how they affect the balance sheet and income statement.
Paul Neiffer is a certified public accountant and business advisor specializing in income taxation, accounting services, and succession planning for farmers and agribusiness processors. Paul is a principal with CliftonLarsonAllen in Walla Walla, Washington, as well as a regular speaker at national conferences and contributor at agweb.com. Raised on a farm in central Washington, he has been immersed in the ag industry his entire life, including the last 30 years professionally. Paul and his wife purchase an 180 acre ranch in 2016 and enjoy keeping it full of animals.
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