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.