Summer Bookkeeping Tips for Farmers: Staying on Top of Your Finances

Farm Assist

Jun 13

Summertime is busy: planting, harvest, growing. Big money decisions are happening. With so much going on, it’s easy for bookkeeping tasks to take a back seat. However, keeping your financial records in order is crucial for the success and sustainability of your farming operation.

Review and Update Your Budget

Compare your actual expenses and income to your projections for the first half of the year. Identify any discrepancies and adjust your budget accordingly for the remainder of the year. Simply: make sure everything is accurate. This will help you manage cash flow and make informed financial decisions.

Track Your Expenses Diligently

With an insane amount of activity on the farm, it’s easy to overlook expense tracking. It’s nearly a guarantee you’ve swiped your card, added to your tab, and written checks for more transactions than you may realize. It’s easy when part runs are on the table.

It’s important, whether you want it to be or not, that you create a habit to record all your expenses within a reasonable amount of time. Honestly, it just saves you a lot of time at the end of the year.

Use accounting software, like Quickbooks, or mobile apps, like MileIQ, to keep track of your spending on supplies, equipment, labor, and other costs. Accurate expense tracking will give you a clear picture of your financial health and help you manage your cash flow effectively.

Prepare for Tax Season

While tax season might seem far off, summer is the perfect time to start preparing. Organize your financial records, including receipts, invoices, and bank statements. If you haven’t already, consider working with a CPA or a bookkeeping service like Farm Assist (wink, wink) to ensure you’re on track.

Preparing early can help you identify potential tax deductions and credits, saving you time and money when tax season arrives.

Monitor Cash Flow

Cash flow management is critical during the summer months when expenses can be high. Monitor your cash flow regularly to ensure you have enough funds to cover operating costs. Consider setting up a separate account for tax savings to avoid any surprises when it’s time to pay your taxes. Maintaining a positive cash flow will keep your farm running smoothly and prevent financial stress.

Evaluate Your Financial Goals

You can bury your head in the sand, or you can take a peek at your finances. Are you on track to meet your goals? Are there areas where you need to adjust your strategies?

Stay Organized

Organization is key. Create a system for filing and storing your financial documents. Use digital tools to scan and save receipts and invoices. Staying organized will save you time and reduce the stress of searching for important documents later on.

Seek Professional Help

If bookkeeping feels overwhelming, don’t hesitate to seek professional help. A bookkeeping service like Farm Assist can provide valuable support and ensure your financial records are accurate and up-to-date. Additionally, they can refer you to a CPA for more complex financial needs and tax preparation.

By staying proactive with your bookkeeping tasks during the summer, you can ensure your farm’s financial health and set the stage for a successful harvest season. Remember, keeping your finances in order is an investment in the long-term success of your farming operation.

Amanda Holder

God.

Family.

Work.

This is the order I strive to achieve in my life. I wouldn’t be anywhere without God’s hand in my daily life. I am blessed with a job that allows me to work from home so I can be there for my kids every day. I place work last on my list of priorities, but don’t misunderstand that. My clients and my company are what I think about most in my life. I strive to be the very best that I can so that I can help every farm that I can in this nation.