Farm Financial Management: It’s Never Been Easier MULCAHY & CO | P 03 5330 7200 | INFO@MULCAHY.COM.AU | 300B GILLIES ST NTH, BALLARAT
Control the Controllable BUDGETING HAS NEVER BEEN EASIER. With cloud accounting technology there is no excuse. Control what you can control and have up to date financial information to help with decision making. The word budgeting can have negative connotations for many farmers. Budgeting can mean cutting back, ‘tightening the belt’ or something that the bank said I had to do. “Tell me when it’s going to rain and I’ll prepare a budget” is another common response. In the past preparing a budget
Real-time financial information
and monitoring the budget seemed a difficult task. By the time all the information was gathered and analysed it was old news. Financial management wasn’t as critical. Costs were lower, margins were higher. There was more ‘fat’ in the system. The business of farming has changed. In an attempt to become more productive and achieve economies of scale farmers have taken on more debt. Loans for working capital, land and machinery. Debt is cheap with banks falling over themselves handing out cash to farmers and machinery manufacturers desperately trying to gain market share offering amazing deals. A perfect storm if the farm finances are not managed. Financial management is now easy with new cloud technology connecting your farm bookkeeping system
livestock information you and your farming team need to make immediate and futurefocused farming decisions. •
CONFIDENT FARMING DECISIONS
Crop and livestock tracking, farm budgeting and forecasting tools that work with Xero.
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A farm financial management solution that helps you farm on the front foot. Figured is a great way to get all the financial, crop and
Confidently plan and re forecast with real time information when conditions change.
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Make decisions based on a true picture of farm performance.
linking and sharing data with your cashflow management system. Updating in real time means there is no lag or wasted time gathering the information and analysing actual result to budget. It is often said that luck is where preparation meets opportunity. A big part of preparation is understanding your financial information and controlling what you can control.
ARE YOU A FARMER: •
Wanting to expand?
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Wanting to consolidate?
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Wanting to increase off farm assets?
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Wanting to sleep easier at night with a clear understanding of financial information?
Mulcahy & Co plus Figured and Xero ensures the farming team knows exactly where the farming operation stands – and where it’s heading. Figured works hand in hand with Xero Figured delivers the farm management information and Xero provides the accounting platform. Information flows seamlessly between the two, creating one financial platform with everything at your fingertips.
IMPORTANT DISCLAIMER: This document does not constitute advice. Clients should not act solely on the basis of the material contained in this document. Items herein are general comments only and do not constitute or convey advice per se. Also changes in legislation may occur quickly and we therefore recommend that our formal advice be sought before acting in any of these areas. This document is issued as a helpful guide to clients and for their private information.
ACCOUNTING | FINANCIAL PLANNING | LENDING | LEGAL | INFORMATION TECHNOLOGY MULCAHY.COM.AU
MULCAHY & CO | P 03 5330 7200 | INFO@MULCAHY.COM.AU | 300B GILLIES ST NTH, BALLARAT
Key management Concepts Liquidity
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Cashflow budget
Farm Business Goal
1. Continue to build the farming business and wealth for the business to be viable for the next generation.
Efficiency
Profit & loss budget
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Wealth
Enterprise gross margin budget
Profit and loss Profit: the measure of profit gives the statement financial performance of the business.
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Cashflow budget
Cash availability: measures whether the business can meet its obligations of loan repayments and interest and the required living standards of the owners.
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Balance sheet
Net worth: growth indicates the business financial ability yo manage risk. Return on capital: measures business efficiency. Equity: measures the percentage of assets owned.
2. Maintain and increase farm value as superannuation for the current generation operating the farm.
Sound Farm Management
Balance sheet
Financial ‘tools’ needed to plan What do these ‘tools’ indicate? and track business health •
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Cashflow budget
Measures whether the business can meet its obligations of loan repayments and interest, and the required living standards of the owners.
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Balance sheet
Measures the owner’s wealth.
Are You Financially Secure?
At Mulcahy & Co we are in a unique position to provide the expert advice and solutions of accounting, financial planning, lending, legal and information technology all under the one roof. This makes a normally complicated process seamless to help you on your way to becoming financially secure. FOLLOW OUR 10 STEPS TO SUCCESS TO ACHIEVE FINANCIAL SECURITY... Visit www.mulcahy.com.au for more information
We offer a free no obligation meeting to review your situation. Call us today on 03 5330 7200 and take advantage of this valuable offer. ACCOUNTING | FINANCIAL PLANNING | LENDING | LEGAL | INFORMATION TECHNOLOGY MULCAHY.COM.AU
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