FFSC Day 2 – Session 5
The last session of the day was presented by Ben Romine, an accountant from Northern Indiana on Using the Standards in an Accounting Practice.
Using Enterprise accounting is very valuable but you must determine what the standards are and how much detail. If you have not started this yet, start simple and then go to more detail if you have the time, staff, and will get the records from the production. But remember this only has value if you use it as a farming tool.
This use creates valid cost of production that can used in yourbudgeting and marketing. Most farmers are still using their CPA/accountant as their “controller”. This continues to accelerate as more lenders require compiled financial statements.
The use of a double column balance sheet (cost and market) allows you to more easily determine values for buy/sells and expansion or contraction as appropriate.
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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