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The Efficient Farm Office
ACORN Conference

Moncton, New Brunswick
November 20, 2013

Richard Wiswall
Cate Farm, VT
www.catefarm.com
www.richardwiswall.com
Thanks to our Sponsors
Office Paper Flows
• Purchases (Expenses) - Items or services
coming into the farm: seeds, fuel,
electricity (with bill to be paid)

• Sales (Income) - Products leaving the
farm: carrots, eggs, wool (with

accompanying invoice or logbook entry)
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
Financial Leaks
•
•
•
•
•
•

No invoice
Lost invoice
Math errors
Taxes
CSA
Farmers’ Market
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 “Mother” checkbook: the center
for all financial transactions

-Be aware of CSA transactions
-Calculating scales for Farmers Market-
Questions?
Financial Statements
• Balance Sheet: Your net worth
at a moment in time
• Profit & Loss Statement: over a
specific time period
• Five year Projection: a P&L
extended into the future
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.
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
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

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Wiswall the efficient farm office

  • 1. The Efficient Farm Office ACORN Conference Moncton, New Brunswick November 20, 2013 Richard Wiswall Cate Farm, VT www.catefarm.com www.richardwiswall.com
  • 2. Thanks to our Sponsors
  • 3. Office Paper Flows • Purchases (Expenses) - Items or services coming into the farm: seeds, fuel, electricity (with bill to be paid) • 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
  • 5.
  • 6. Financial Leaks • • • • • • No invoice Lost invoice Math errors Taxes CSA Farmers’ Market
  • 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 “Mother” checkbook: the center for all financial transactions -Be aware of CSA transactions -Calculating scales for Farmers Market-
  • 9. Financial Statements • Balance Sheet: Your net worth at a moment in time • Profit & Loss Statement: over a specific time period • 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