Module 1: Intro to Farm Finances
Module 1: Intro to Farm Finances
Watch Rebecca Frimmer of Kitchen Table Consultants talk about the importance of an accounting system and learn about business analysis tools. You can find the presentation referenced during the video below.
- Module 1: Intro to Farm Finances Presentation (PDF)
- Reference Materials: Glossary of Financial Terms (PDF)
New to financial management and planning? Familiarize yourself with these terms and concepts that’ll be used throughout this virtual training.
- Reference Materials: Income Statement Template (PDF)
Template to help setup income accounts in the Chart of Accounts. This template is based on enterprises, not customers.
- Exercise: Sample of Small Farm P&L (PDF)
Let’s unpack this story! Using this sample of a Profit & Loss from a small farm, make comparisons year-to-year about this business. What years were labor not being managed? Can you follow how they computed their COGS?
- Exercise: Build a Chart of Accounts Profit & Loss Sheet (PDF)
Using the 7 profit & loss accounts/parent categories you’ve learned about, take a look at your expenses and plug in a couple subcategories that could go in each. The goal of a P & L is to figure out profit.
- Reference materials: Balance Sheet Template (PDF)
The goal of a Balance Sheet is to understand how the net worth of your business is increasing over time. This is the place to track liabilities, equity, and assets.
- Reference material: Balance Sheet Sample (PDF)
What are some red flags you notice from this farm’s Balance Sheet? Do you notice there’s a tractor financing loan, but no tractor asset.
- Exercise: Messy Balance Sheet (PDF)
This is an example of a poorly maintained Balance Sheet. What are some things that stand out to you? Notice the undeposited funds and uncategorized assets. Both those amounts should smartly be allotted to their respective categories.
- Module 1: Intro to Farm Finances Presentation (PDF)
- Reference Materials: Glossary of Financial Terms (PDF)
New to financial management and planning? Familiarize yourself with these terms and concepts that'll be used throughout this virtual training.
- Reference Materials: Income Statement Template (PDF)
Template to help setup income accounts in the Chart of Accounts. This template is based on enterprises, not customers.
- Exercise: Sample of Small Farm P&L (PDF)
Let's unpack this story! Using this sample of a Profit & Loss from a small farm, make comparisons year-to-year about this business. What years were labor not being managed? Can you follow how they computed their COGS?
- Exercise: Build a Chart of Accounts Profit & Loss Sheet (PDF)
Using the 7 profit & loss accounts/parent categories you've learned about, take a look at your expenses and plug in a couple subcategories that could go in each. The goal of a P & L is to figure out profit.
- Reference materials: Balance Sheet Template (PDF)
The goal of a Balance Sheet is to understand how the net worth of your business is increasing over time. This is the place to track liabilities, equity, and assets.
- Reference material: Balance Sheet Sample (PDF)
What are some red flags you notice from this farm's Balance Sheet? Do you notice there's a tractor financing loan, but no tractor asset.
- Exercise: Messy Balance Sheet (PDF)
This is an example of a poorly maintained Balance Sheet. What are some things that stand out to you? Notice the undeposited funds and uncategorized assets. Both those amounts should smartly be allotted to their respective categories.