Do You Report Your Farm Financial Records by Cash or Accrual?

▤ Summary

This is when you’re purely on cash-basis books and fill out a balance sheet once a year and delegate financial oversight to a lender and their proprietary system of analysis (the so-called “black box”). This adjusted accrual system, as documented in the Farm Financial Standards Council’s Financial Guidelines for Agriculture, relies on a cash-basis accounting system throughout the year, then converts those records to a modified accrual basis for year-end analysis through comparing changes in inventories and "reconstructing" payables and receivables. Over its decades-long history, the adjusted accrual system has played a critical role in advancing the financial capabilities of farmers (and lenders) as well as helping them survive and thrive. • By leveraging an automated process of “backing out” accounts payable and receivable (then segregating accruals from cash entries), producing cash/tax reports at the push of a button with the right software. Get a free demo today from one of our experienced professionals and find out more about how you can revolutionize your farm financial reporting system to save time while identifying opportunities to improve profitability.

▦ Linked Companies

HubSpot, Inc.

$1M to $5M