The right foundations
Everything of strength and longevity is built on strong foundations so getting these things right is incredibly important even if not so exciting. Munro’s helps you get your “farmhouse” in order to ensure you maximize your returns and protect what you’ve worked bloody hard for.
Tax & compliance
Tax and compliance can get very complicated but the key is having a proactive accountant who reviews your position every year and makes sure you don’t pay any more tax than you have to.
The farming cycle presents challenges of its own in maintaining the cash flow needed to run your business and meet your personal needs. Add to that the demands of bank managers, suppliers and the taxman and cash flow becomes tricky. Optimising your cash flow can be an art.
Being able to leverage your farming business through judicious borrowing to optimize your return on capital invested can be useful, particularly if there are taxation or other advantages. Being able to do so often depends on you being able to provide the lender with accurate and up to date financial information prepared by an accountant in good standing.
Reporting & measurement
Knowledge is power and what doesn’t get measured doesn’t get done. Or so they say. In today’s information age, we find tools that can provide a farming business with enormous amounts of information and can measure virtually any aspect of the business – but do you need all this? Focusing on the key performance indicators makes more sense. Haven’t you got better things to do?
Performace & profitability
Understanding how well various aspects of your farming business perform and why becomes a key input each year to your business planning process. Understanding profitability, however, is often more complex!
It may be better to limit or avoid certain risks in the first place, but there could also be some risks you could accept without losing too much sleep. You might also be able to transfer some risk to someone else, and having a sounding board will help you see what’s what.