1. The Efficient Farm Office
ACORN Conference
Moncton, New Brunswick
November 20, 2013
Richard Wiswall
Cate Farm, VT
www.catefarm.com
www.richardwiswall.com
3. Office Paper Flows
โข Purchases (Expenses) - Items or services
coming into the farm: seeds, fuel,
electricity (with bill to be paid)
โข Sales (Income) - Products leaving the
farm: carrots, eggs, wool (with
accompanying invoice or logbook entry)
4. Paper trails
Need temporary resting spots for:
Unpaid invoices
Bills to pay, including credit card slips, account slips
and reimbursement for cash expenditures
Payments to deposit
Once processed:
Paid bills folder
Finished deposits to bank (paid invoices and other $)
Employee records
Insurance policies
7. Quick Fixes
-Set up desk for paper trails
-Use duplicate or triplicate invoices
-Invoice Everything
-Check math (add whole numbers two at a time)
-Taxes: record all bona fide farm expenses
-Designate โMotherโ checkbook: the center
for all financial transactions
-Be aware of CSA transactions
-Calculating scales for Farmers Market-
9. Financial Statements
โข Balance Sheet: Your net worth
at a moment in time
โข Profit & Loss Statement: over a
specific time period
โข Five year Projection: a P&L
extended into the future
10. Balance Sheet
on December 31, 2009
Assets
Liabilities
Current assets
Current Liabilities (due in less
than 12 months)
Farm checking
Savings account
Accounts receivable
Crop and feed inventory
Farm supplies on hand
Other:
Total Current Assets
Operating loan balance
Line of Credit balance
Credit card balance
Other:
Total Current Liabilities
Intermediate Assets
Farm machinery
Farm vehicles
Livestock
Retirement accounts
Other:
Total Intermediate Assets
Intermediate Liabilities
Tractor loan balance
Truck loan balance
Other:
Long term Assets
Farmland
Farm buildings
Farmhouse
Other:
Total Long term Assets
Long term Liabilities
Long term loan 1 balance
Long term loan 2 balance
Other:
Total Assets
Total Intermediate Liabilities
Total Long term Liabilities
$
Total Liabilities
$
Net Worth $
NOTES: Use back of sheet for inventory and other notes, if needed.
11. Profit and Loss Statement
Income
Sales: Wholesale
CSA
Farmers Market
Total Sales
Expenses
Advertising
Donations
Fertilizer
Fuel and Oil
Greenhouse Supplies
Insurance: farm share
Interest expense: farm share
Internet, web site
Livestock expenses
Miscellaneous
Office
Payroll
Professional services
Rent paid
Repairs and maintenance
Seed, Plants purchased
Supplies
Taxes: farm share
Trucking, freight
Utilities: farm share
Total Expenses
Net Profit
January 1, 2009 through December 31, 2009
12. Cash Flow Projection
2010 to 2014
2010
Income
Sales: Wholesale
CSA
Farmers Market
Total Sales
Expenses
Advertising
Donations
Fertilizer
Fuel and Oil
Greenhouse Supplies
Insurance: farm share
Interest expense: farm share
Internet, web site
Livestock expenses
Miscellaneous
Office
Payroll
Professional services
Rent paid
Repairs and maintenance
Seed, Plants purchased
Supplies
Taxes: farm share
Trucking, freight
Utilities: farm share
Capital Purchases
Total Expenses
Net Profit
2011
2012
2013
2014