Farm Financial Management – Odessa (TX)
Odessa and Texas farmers and agribusinesses face changing variables impacting the bottom line. Uncovering the best use of available acreage can be complicated by changing weather conditions, international competition, supply chain concerns, and changing market prices. Traditionally, many have relied on experience and intuition to make these decisions but increasing complexities have left some searching for a more analytical solution. The ability to run what-if scenarios using real-time data can lead to more profitable decisions. It also means leaving less to chance.
That’s why a farm financial management technology solution is an essential tool needed to drive growth. It makes it easier for Odessa and Texas farmers of all sizes to profit more from their land than ever. Platforms like AgriBuilder bring new perspectives to the planning process through comprehensive budgeting, cash flow management, and timely financial reporting. Armed with this information, management will not only have a clear picture of monthly financial performance but also be able to conduct effective tax planning. Through a combination of financial intelligence, planning tools, and guidance from seasoned agriculture financial consultants, farmers reach a more consistent and profitable outcome.
AgriBuilder – Farm Financial Management Solution
Farm Financial Management FAQs
Farm financial management is a comprehensive process that involves planning, tracking and analyzing financial resources to ensure profitability, sustainability and stability of operations. Effective management includes a robust accounting program focused on budgeting, cost control, cash flow management, projections, and informed investment decisions. Armed with accurate financial information, farmers can make important decisions about:
- investing in crops and livestock,
- managing debt,
- maximizing profits and
- the pros and cons of loans and government programs.
AgriBuilder creates the most value for agricultural businesses by integrating:
- intuitive accounting software (Xero)
- seamless and actionable farm management software (Figured) and
- ongoing advice and support from seasoned agriculture financial consultants.
A robust farm accounting program helps farmers manage finances, expenses and income while seamlessly integrating with your farm management system. In addition to these necessities, your farm accounting software must help you streamline process for annual tax filings. Check out these common signs that your accounting system is broken.
An effective farm accounting process delivers updated financial reports that empower decision making. There are three standard financial statements including the balance sheet, income statement and statement of cash flow. The balance sheet conveys details about the farm’s assets, liabilities and overall net worth. The income statement reports revenues and expenses over a specific period of time, and the cash flow statement highlights the movement of cash.
Adams Brown regularly reviews financial reports with agriculture clients to monitor operations, assess profitability, identify trends for planning and make informed decisions. Together, we also review:
- accounts payable and receivable,
- budget versus actual,
- break-even analysis,
- cost of production,
- crop gross margin,
- depreciation schedules,
- inventory breakdowns by field and/or crop
- market value balance sheet and
- tax projections.
A holistic approach to reviewing your financial and farm management data ensures your ability to make sound business decisions for your farm while planning for future initiatives, investments and goals.
Additional farm financial management insights:
While each farming operation faces unique and different challenges and opportunities, there are some general guidelines which can help improve cash flow. These include:
- timing large purchases with revenue cycles,
- ensuring a diverse source of income (for example, agritourism, integration of wind farms, leasing hunting ground),
- negotiation of payment amounts and terms with vendors/suppliers,
- leveraging lines of credit and
- maintaining an emergency fun
Understanding your farm’s value is important for various reasons, ranging from financial planning to strategic decision-making. Whether you are buying, selling, planning your estate or evaluating operational success, knowing what your farm is worth can provide critical insights to help you achieve your goals. A thorough farm valuation will help you conclude the true value of your farm.
Map of Ector County (TX)
Odessa Farm Financial Management
Adams Brown, Strategic Allies, and CPAs work with ranchers, farmers, and other agribusinesses in Odessa and across Texas to enhance profitability. Through the implementation of AgriBuilder, many farmers and ranchers now have improved financial management processes leading to more profitable outcomes. They also have more effective and informed financial management processes that create peace of mind, knowing they have access to accurate information – faster – to drive better decision-making.
About Ector County Farming
Ector County, located in West Texas, is less renowned for its farming compared to other parts of the state, primarily due to its arid climate and oil-rich land. However, agriculture still plays a role in the local economy, albeit on a smaller scale. The farming community in Ector County mainly focuses on crops that can withstand the dry conditions, such as sorghum and cotton. These crops are chosen for their resilience to the harsh climate and minimal water requirements.
The soil in Ector County, while challenging for traditional farming, can support these hardy crops with the aid of irrigation. Farmers here often rely on advanced irrigation techniques and water conservation methods to maintain their fields. The community is resourceful, utilizing technology and innovative practices to maximize their yields despite environmental constraints.
Livestock farming, particularly cattle ranching, is another component of the agricultural landscape in Ector County. Ranchers raise cattle on the vast open lands, which are more suited to grazing than crop cultivation. This aspect of agriculture is integral to the local culture and economy, contributing to the county’s overall agricultural output.