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Using AgExpert’s enterprise feature

Setting up and managing "enterprises" for better information management on your farm

AgExpert Analyst allows you to break your farm into separate “enterprises,” so you can manage and analyze specific profit sectors within your operation.

For example, if you have a livestock and grain operation, you can set up a grain enterprise and a cattle enterprise. If you produce strictly crops, then you may want to create three separate enterprises — one each for grains, oilseeds and pulses. Other common enterprises include dairy or trucking. Enterprises are completely customizable to your operation.

Once you create enterprises, you can track income and expenses for each enterprise by establishing an “enterprise split” in the chart of accounts. You can use reports and management tools to compare the profitability of each enterprise, and help make important decisions for your farm. This could include deciding whether or not to invest in more cattle to complement your grain enterprise, or reviewing budgets for your grain and oilseed enterprises to plan for the most profitable combination of canola, wheat and barley acreage.

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Setting up enterprises

Follow these steps to set up your enterprises.

  1. Setup > Preferences > Optional Features > Make sure Enterprises box is checked > Save.
  2. Setup > Enterprises. This is where you can customize the name of the enterprises to suit your operation. You can add a new enterprise, edit or delete an existing enterprise, or merge two existing enterprises together.
    Tip: If you choose to merge two enterprises, any percentage splits that you’ve allocated to those enterprises in the income and expense accounts, will also be merged.
  3. Close.

Set up expense splits

Now, you can start to allocate income and expenses by enterprise.

  1. Setup > Chart of Accounts.
  2. Income Tab > Select an Income Account: Such as Hard Red Spring Wheat Sales.
  3. Click Edit: On the right hand side, you’ll see the Enterprises box.
  4. Select the appropriate enterprises for this income account. Then allocate a percentage to each enterprise. For example, 100 per cent of the Hard Red Spring Wheat income should be allocated to your “grains” enterprise. If you need to remove an enterprise from the list, simply click to highlight it, then click on the red x to remove it. Click Save.
    Tip: If you have a custom work income account, you could choose to allocate 50 per cent to grain enterprise and 50 per cent to cattle enterprise. However, percentages should be setup to appropriately reflect your operation and don’t need to equal 100 per cent.
  5. Repeat these steps to set up enterprises for all income accounts.
  6. Expense Tab > Select an expense account, such as “fertilizer.” Then, for example, allocate a percentage split for fertilizer among grains, oilseeds and pulse enterprises.
  7. Repeat steps to setup enterprises for all expense accounts.
  8. Close Chart of Accounts window.
  9. Reports > Report Console > Transaction/Account Information > Chart of Accounts > Select Category > Keep a check mark in income and expense boxes > Table View: This will show you the Chart of Accounts Report. You will see your Enterprise Columns and be able to review the percentages you have allocated to your income and expense accounts.
    Tip: Percentage splits can be changed and updated anytime by going back into the Setup and Chart of Accounts.

Reports and management tools

  1. Reports Console > Financial > Income/Expense Report > Explore various options within this report. Put a checkmark on “use enterprise split.” Select one or more enterprises to view an income/expense report based on your selection. Or, compare: under Style: choose Summary or Detail, and under Type: Select Enterprise Comparison.
  2. Management > Budget > Set the budget to look at the farm as a whole or by each enterprise or combination of enterprises, allowing you to compare actual to budgeted income and expenses.
  3. Management > Operational Benchmarking > Production Unit Costing > this report will list a cost/acre or a cost/head from the information you’ve entered into the system. It can also report the total production cost by enterprise.
  4. Management > Operational Benchmarking > Efficiency Measures shows the percentage of gross income that goes towards different expense categories and can be viewed by enterprise.

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