The success of any business depends on how well you plan. For instance, if you want to produce and sell more nutritional hay, you should plan to have the right equipment. Typically, it is advisable to plan each year in advance, and one of the most appropriate times to make plans for your farm is near the end of each year, well before the next growing season starts.
The first step towards successful farm business year-end planning is knowing what aspects of the farm to address. Here are 5 year-end farm business tasks and planning recommendations for you.
5 Year-End Farm Business Tasks and Planning Recommendations
1. Review The Accounts
December is a busy month for most people, but it’s also an essential month for bookkeeping. For farmers, year-end bookkeeping is a chance to review the previous year’s financial plan and make any necessary adjustments for the coming year. This includes setting new farm goals, reviewing expenses, and forecasting farm income.
Year-end bookkeeping is also a good time to reflect on the farm’s progress and identify areas where you can make improvements. By taking the time to do year-end bookkeeping, farmers can ensure that their farm is on track and set up for success in the new year.
2. Review Your Productivity During the Year
Now that your books are up to date, take time to perform an in-depth review of your farm’s performance and productivity. Such a review helps you answer the following questions:
- How did your farm perform during the year?
- Did you achieve your business goals, and why or why not?
- Are there areas of the farm that need more attention in the following year?
- What are your new business goals for the coming year?
Once you have the answers to these questions, you can use them to inform your decisions and plans for the coming year.
3. Take Stock of Your Equipment and Machinery
As any farmer knows, farm equipment and machinery are significant investments. Not only do you need to purchase the equipment itself, but you also need to maintain it and keep it in good working order. That’s why taking stock of your farm equipment and planning for large purchases at year-end is so important.
Not only can you take advantage of year-end deals on equipment, but you can also take advantage of tax breaks and write-offs. Planning ahead can save your farm money and keep your operation running smoothly.
For instance, as a hay producer, ensuring that your harvesting equipment is in good condition now can prevent failures and unexpected expenditures in the middle of the next harvesting season. Replacing worn hay conditioning rollers or adding them to your operation can mean larger yields with more nutritional value next year. Take the time to do a cost-benefit analysis now and prove that the expenditure will pay for itself quickly in the coming year.
4. Year-End Tax Planning
Year-end tax planning is vital for farm businesses for a number of reasons. Working with an agricultural accountant can be a helpful way to ensure that all eligible deductions and expenditures are taken advantage of in order to maximize deductions and minimize tax liability.
This is also a good time to take a look at retirement planning. By socking away money into a retirement account, you can reduce your taxable income and take advantage of other tax benefits.
Finally, year-end tax planning can help you prepare for unexpected events. By setting aside money in an emergency fund or making purchases in anticipation of future events, you can avoid having to dip into your retirement savings if something unexpected comes up.
5. Budget for the Future
It’s no secret that farming is a tough business. With so many aspects out of your control – from the weather to the markets – planning for the future can be difficult. That’s why budgeting is such a crucial task for farm businesses.
By forecasting revenue and expenses, investing in crop insurance, and planning for or making farming equipment purchases now, farm businesses can be better prepared for unexpected events and plan strategically for investments and other business goals.
This budget planning, in turn, can help you make decisions that will improve your business’ productivity and profitability. And when it comes to investments, a well-thought-out budget can mean the difference between success and failure.
Plan for the Future Now
One of the most influential things you can do for your farm business is to plan ahead. Year-end farm business planning lets you take a step back and assess your operation as a whole. This is the time to review your equipment needs, make any necessary repairs or maintenance, and set goals for the coming year.
It’s also an excellent time to review your financial situation and make any necessary adjustments to your budget. By taking the time to plan now, you can avoid costly mistakes and set your farm business up for success in the year ahead.
When it comes to adding or replacing your hay conditioning rollers to make sure you will get the highest yield and nutritional value from your hay harvest, get in touch with us at B&D Rollers. We have the largest aftermarket inventory of hay rollers in the world for all brands.
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