The Efficient Farm Office

ACORN Conference Moncton, New Brunswick

November 20, 2013

Richard Wiswall Cate Farm, VT www.catefarm.com www.richardwiswall.com

Thanks to our Sponsors

Office Paper Flows • Purchases (Expenses) - Items or services

coming into the farm: seeds, fuel, electricity (with bill to be paid)

• Sales (Income) - Products leaving the farm: carrots, eggs, wool (with accompanying invoice or logbook entry)

Paper trails Need temporary resting spots for: Unpaid invoices Bills to pay, including credit card slips, account slips

and reimbursement for cash expenditures Payments to deposit Once processed: Paid bills folder Finished deposits to bank (paid invoices and other $) Employee records Insurance policies

Financial Leaks • No invoice • Lost invoice • Math errors • Taxes • CSA • Farmers’ Market

Quick Fixes -Set up desk for paper trails -Use duplicate or triplicate invoices -Invoice Everything -Check math (add whole numbers two at a time)

-Taxes: record all bona fide farm expenses

-Designate “Mother” checkbook: the center for all financial transactions

-Be aware of CSA transactions -Calculating scales for Farmers Market-

Questions?

Financial Statements • Balance Sheet: Your net worth at a moment in time

• Profit & Loss Statement: over a specific time period

• Five year Projection: a P&L extended into the future

Balance Sheet on December 31, 2009

Assets Liabilities

Current assets Current Liabilities (due in less

than 12 months)

Farm checking Operating loan balance

Savings account Line of Credit balance

Accounts receivable Credit card balance

Crop and feed inventory Other:

Farm supplies on hand

Other:

Total Current Assets Total Current Liabilities

Intermediate Assets Intermediate Liabilities

Farm machinery Tractor loan balance

Farm vehicles Truck loan balance

Livestock Other:

Retirement accounts

Other:

Total Intermediate Assets Total Intermediate Liabilities

Long term Assets Long term Liabilities

Farmland Long term loan 1 balance

Farm buildings Long term loan 2 balance

Farmhouse Other:

Other:

Total Long term Assets Total Long term Liabilities

Total Assets $ Total Liabilities $

Net Worth $

NOTES: Use back of sheet for inventory and other notes, if needed.

Profit and Loss Statement January 1, 2009 through December 31, 2009

Income

Sales: Wholesale

CSA

Farmers Market

Total Sales

Expenses

Advertising

Donations

Fertilizer

Fuel and Oil

Greenhouse Supplies

Insurance: farm share

Interest expense: farm share

Internet, web site

Livestock expenses

Miscellaneous

Office

Payroll

Professional services

Rent paid

Repairs and maintenance

Seed, Plants purchased

Supplies

Taxes: farm share

Trucking, freight

Utilities: farm share

Total Expenses

Net Profit

Cash Flow Projection 2010 to 2014

2010 2011 2012 2013 2014

Income

Sales: Wholesale

CSA

Farmers Market

Total Sales

Expenses

Advertising

Donations

Fertilizer

Fuel and Oil

Greenhouse Supplies

Insurance: farm share

Interest expense: farm share

Internet, web site

Livestock expenses

Miscellaneous

Office

Payroll

Professional services

Rent paid

Repairs and maintenance

Seed, Plants purchased

Supplies

Taxes: farm share

Trucking, freight

Utilities: farm share

Capital Purchases

Total Expenses

Net Profit