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Accounting Software for Agriculture – Five Steps to take Right Now to Start Increasing Profits
Don’t wait for the economy! Take immediate steps to start
increasing your profits right now. At some point, we have all been guilty of
it, waiting for change to happen, rather than actually doing something. The
current economy has become an excuse for so many of us, but one great way to
gain an advantage over your competition is to take action right now to increase
the profitability of your operation. You may be thinking, “Yes, but what can I
do?” There are things you can do now that will benefit your agricultural
operation for years to come, regardless of a recession or anything else that
comes your way. Here are five things you can do with your farm software to
start increasing the profitability of your operation right now!
transactions and reporting to fit your needs. No two agricultural operations
are the same. That’s why it’s important to customize the way you process
transactions within your software. If you set up your accounting system to
track and view certain information that is important to your operation, you
will be able to look back at that information in a way that is meaningful to
you. That’s why the first step is to
change the way you enter and analyze data by customizing it to your operation.
financial analysis to identify strengths. How do you know where you are going,
unless you know where you are? Use the reports your software system provides to
immediately uncover strengths and weaknesses you may not have known about. Run
as many reports as you need to understand which areas of your operation are
making money, and which areas need improvement. That way you will have a
roadmap to success!
up production analysis. Production analysis can be measured by pre-defined
quantities such as per acre, per bushel, per box, per cwt, per head, or any
unit tracked. Expenses can then be applied to multiple account levels, such as
a fertilizer account with segments for blend, lime, and nitrogen. Knowing your
operation’s profitability by production center allows you to know which areas
need to be improved upon. This information can then be used to answer “what if”
scenarios and help you make the best decisions for your operation.
up a budget. A budget helps you gain control of your
finances; giving you the tools you need to project future cash flow and manage
assets and liabilities. If you aren’t currently using a budget, set one up
right away to help you control spending and increase your profits!
training to make the most of your farm accounting software system. No matter
which accounting software system you use for your agricultural operation, a
combination of the above mentioned tools are available to help your operation
thrive. Although software provides a wealth of tools, many users only use the
basics to manage income and expenses. Take a training class to fully understand
the capabilities of your software system, so you can take advantage of the
advanced tools to help you analyze and improve your operation’s profitability.