We have put together a short checklist for farmers with some key pointers of things you may want to consider before year-end on 5th April 2023.
As this can be a busy time of year for farmers, you may be knee-deep in calving, lambing and preparing crops, the last thing you want to be stressing about is what you ‘should’ be doing with your accounts now that year-end is just around the corner.
Here at SUM-IT we want to take as much hassle as possible out of your record keeping so we have put together this handy checklist to quickly run through any actions you may want to consider before year end this April.
With our Total Farm Accounts software, we sort your VAT automatically so you needn’t worry about making the right calculations or submissions. All our farm management software gives you access to a range of reports which is a great way of reviewing the exact position of your farm at year-end and planning where you want to head.
Here’s our 6 points to consider before year-end 2023.
- Do a good stock take
Now is an important time to do a thorough physical stock take of everything such as seeds, fertilisers, sprays, drugs, feed and semen. Do your records match reality? If not, then you have to make any adjustments and make sure the facts and figures you are relying on to make decisions are in line with what you’ve actually got on the farm.
- Tidy up old entries
Have your records started to get a bit untidy with unmatched invoices, old debtors & creditors and outstanding tasks? Your head will feel a lot clearer once these have been tidied up and sorted out, so put some time aside to get rid of all these pesky outstanding tasks. You may even find yourself in a better position if you discover some outstanding debtors you weren’t aware of or some invoices that have mistakenly been replicated.
- Protect your profit
No-one likes to be paying any more tax than is absolutely necessary, especially not farming folk! Looking at your profit and tax obligations, you may decide that now is a good time to bring some expenditure forward. Perhaps you have been eyeing up a new piece of machinery or replacing some well-worn tools. It may be a good idea to get these expenses through the books now so as to reduce your upcoming tax bill.
- Cash flow check
Once up to date, your Total Accounts software will provide you with an accurate cash flow report. This will help you to determine if you need to sell any grain or underperforming livestock or indeed if you’ve got the delight of lots of ‘cash’ floating around you may want to consider investing this in things such as your pension or land.
- Review gross margins
The beauty of having all this data from your farm is that you can use it to make strategic decisions to increase the profit of your agri-business. With Total, you can quickly see at a glance the gross margins of different enterprises and machinery. At year end, why not use this as an opportunity to download these reports and spend some time reviewing gross margins and how this may have changed from the previous year. Perhaps the cost of your feed bill for your sheep flock has increased or your fertiliser total costs. Now is a great time to assess the ways in which you may increase these margins for next year or whether to invest more heavily in a thriving diversified area of your farm business. Is it time to change supplier, amalgamate suppliers to achieve economies of scale or look at other ways to achieve a better price on your produce such as selling direct to consumers or focusing on more specialist produce.
- Review subsidies available
If you haven’t already, it is certainly worth spending some time reading up about the new environmental land management schemes (ELMs). Farmers in England will be able to receive government funding for up to 280 different environmental-protection activities. These include activities such as conserving hedgerows to maintaining peatlands and enhancing floodwater storage. Find out all the most up-to-date details here.
We wish you all the best with getting it all in order before year-end and as always, we are just at the end of the phone if you have any worries, concerns or niggles.
If you don’t already use our next generation TOTAL2 farm accounts program, check out all it can do for your farm business and let us take the hassle out of ‘doing the books.’