2 minute read
Year-end Financial Review
Year-end financial review helps meet your needs
Having accurate, organized financial data is critical for making successful business decisions. Providing accurate and consistent financial information to GreenStone positions us to have high quality, impactful conversations with you about your business and future business goals. It is an opportunity for you to proactively communicate your plans and allow us to provide you with feedback regarding the financial health of your business and your plans for the upcoming year. Proactively sharing your financial information allows us to evaluate the capacity of your business to safely finance your next loan request. Providing the information early will significantly reduce the time needed to provide you with an answer when that moment arises.
Common documents to prepare:
• Balance Sheet, listing your assets and liabilities • 2021 Historical Farm
Production Data • 2022 Income and Expense
Projection • 2021 Federal and State Income Tax Returns (Or sign the enclosed “Consent to Use Tax Return
Information” form to allow your tax preparer to release it to me.) • Authorization and
Consent for the Release,
Collection and Utilization of Information form
Communication
The business you are running is sophisticated and complex. There is no doubt that you are keenly aware of the market costs affecting your operation and the upcoming opportunities or roadblocks you may face. Efficiently communicating these details can be challenging. However, using yearend reports as a tool to communicate with us and other business partners will help ensure the entire team is on the same page. From a credit standpoint, the more we know up-front, the more efficiently we are able respond to your needs – helping to keep your operation running smoothly.
Financial Position
Understanding the financial position of your business will help each of us to evaluate the overall financial condition of your farming operation as well as specific financial trends that we have found to be key indicators of your business’s financial health. By having a series of highquality year-end financial reports, each of us can conduct an accurate yearover-year comparison. All operations can benefit from generating these at year-end as this provides a consistent ‘snapshot in time’ view of your financial position. In turn, this will help assess how the operation is progressing, and identify and plan for any necessary or advantageous changes. Moreover, compiling the reports at year-end will enable us to respond more quickly in the coming year if new financing needs or other opportunities arise.
Value
Customers find value in this process because financial statements open a window for educated decisionmaking and strategic planning for your business. In addition, year-end financial reports allow for a review of your financial progress over the past year, while also providing critical information necessary to evaluate future business needs. Beyond the benefit to your business management, it also supports your future loan needs. With the financial information already entered in our system and analyzed, GreenStone is able evaluate and process loans in a more timely and responsive manner. ■
