farmingmatters Autumn Edition 2016
FARM BUDGETING & FORECASTING
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 CONFIDENT FARMING DECISIONS 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
FARM LENDING
AGED CARE
FARM HOUSEHOLD ALLOWANCE
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.
connecting your farm bookkeeping system 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.
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.
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.
A perfect storm if the farm finances are not managed. Financial management is now easy with new cloud technology
livestock information you and your farming team need to make immediate and futurefocused farming decisions. •
Crop and livestock tracking, farm budgeting and forecasting tools that work with Xero.
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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.
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.
For more information please do not hesitate to contact Rachael Trickey or Chris Mulcahy on 03 5330 7200. Also refer to our Info Flyers, in particular Farm Financial Management –It’s Never Been Easier 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
Our core purpose is ‘TO HELP COMMITTED CLIENTS ACHIEVE FINANCIAL SECURITY’
mulcahy.com.au
MULCAHY & CO | P 03 5330 7200 | INFO@MULCAHY.COM.AU | 300B GILLIES ST NTH, BALLARAT
FARM HOUSEHOLD ALLOWANCE – TO HELP YOU THROUGH THE TOUGH TIMES The Farm Household Allowance (FHA) provides fortnightly income support to farmers and their partners up to a maximum of three cumulative years (1,095 days of payment) while they take action to address their long-term financial security.
ELIGIBILITY FOR FARM HOUSEHOLD ALLOWANCE •
Be a Farmer
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Aged 16 and over
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Contribute a significant portion of your labour & capital to a farm enterprise
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The Farm must have a significant purpose or character (based on activity and prospect of profit, consistency of farm activity, whether the activity is planned organised and operated like a business and the size, scale and permanency of the activity)
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Have total farm net assets of less than $2.55 Million
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Meet the requirements of the nonfarm and liquid assets test.
MAXIMUM PAYMENTS (ANNUALISED): •
Single, No children - $13,327
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Single with dependent children $14,606
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Single, aged 60 or over - $14,606
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Partnered - $11,983 (each)
For more information please do not hesitate to contact us. Also refer to our Info Flyers, in particular Farm Household Allowance – To Help You Through the Tough Times.
CAN YOU AFFORD NOT TO BE PAID PPSR Farm Tool – Special Offer The Personal Property Securities Act (the PPSA) commenced on 30th of January, 2012. It continues to shock us the number of farmers that trade and have no protection or right to recover the produce sold or the equivalent compensation. Yes, there have been well publicised scenarios over the past few years where having a Personal Property Securities Registration (PPSR) over grain sold would not have made any difference to the outcome. But there are also a number of situations (that are not reported on) where full or partial recovery would have been achieved if the farmer had registered their interest in the grain. The PPSR is an inexpensive asset protection tool available to farmers. The once off set up cost is $1,650 (including GST). This fee includes establishing your legal terms and conditions for trading. This sets out amongst other things payment terms, the ability to charge interest and fees on overdue accounts and the ability to register a PPSR charge. It also includes the ‘PPSR’ Farm Tool How To Guide’ that explains and navigates farmers through the PPSR website. If you decide to make a registration on goods sold to a particular customer, the cost to do this is $8.00 for a registration lasting 7 years and the registration can usually cover all future sales to that customer. The PPSR is designed to protect the unpaid seller of goods. If you don’t use it to protect your position your only option is to line up with all the other unsecured creditors and see what happens. It is important to also realise that even if you are paid as an unsecured creditor, there is a significant risk a liquidator or receiver will ask you to repay the amount as a preferential payment! If you need another tax deduction this financial year,
ACCOUNTING | FINANCIAL PLANNING | LENDING | LEGAL | INFORMATION TECHNOLOGY MULCAHY.COM.AU
but more importantly understand the need to implement a process to protect your right to payment for goods sold, contact us and order your PPSR Farm Tool before the 30th of June for a special price of $1,320 (including GST). Contact Marnie Papst or Brad Matthews at legal@mulcahy.com.au to order your PPSR Farm Tool
FARM LENDING – IT’S NEVER BEEN BETTER! There has never been a better time to review your lending needs and secure a record low interest rate. Equally important is the chance to set up your funding requirements and certainty for the future. Access to capital is essential to grow and develop your farm enterprise. Record low interest rates are on offer, including the opportunity to release security the bank does not need. Having the correct funding in place is an important part of your farms financial security. We can help you work through the funding options available and provide a detailed summary for what’s on offer. Contact Neil McCahon or Matt Egan to discuss further.
AGED CARE – PLANNING IS CRITICAL Aged care is a major challenge and risk confronting the future viability of many farming enterprises. If you are as concerned as we are please take up our offer for an obligation FREE meeting to discuss how aged care may impact your situation and what options you have available to safeguard the future of your farm. Contact Chris Mulcahy to discuss further.
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.