Farmers can reduce their accounting bills by coming prepared, streamlining records and choosing the right accountant, farm family coach Alyssa Brown writes.
Tag Archives accounting
Save on your farm accounting fees
Farm Family Coach: Practical tips for farmers to make meetings with accountants more efficient and avoid unnecessary costs
Couple looks for tax savings
Tax deferral essential to estate plan for farmers with hefty capital gains
In central Manitoba, a couple we’ll call Tish, 62, and Don, 65, have a dilemma. They have done well with their one section after six years of farming and 12 years of renting it to a neighbour. Their land has an estimated value of $4 million, which is a $3-million gain over their $1-million purchase […] Read more
From a private business to the family corporation
What’s left after harvest depends on how the farm is organized and taxed
The idea of the family farm is just that — a concept. The reality is that tax rules, inheritance law, good business practice and the fundamental problem of making a living have changed the family farm from a private business to the family corporation. Organization and tax rules are now almost as important as farm […] Read more
Farm Financial Planner: A Manitoba couple generates more income and pays less tax
How the couple secured retirement and transferred their remaining land to their son
In central Manitoba, a couple we’ll call Harry, 80, and Mary, 76, had a mixed grain and beef cattle farm for four decades. They sold the home quarter to their youngest son, taking back a long-term mortgage with favourable terms. They kept 320 acres, which they have rented out to a neighbour. Their plan was […] Read more
Can your cash flow handle new farm machinery payments?
Hidden profit robbers, Part 2: Real numbers on new and used machinery
In this series of articles, I am identifying some profit robbers I have noticed in my 16 years of farm business consulting in Alberta. In Part 1 of this series, I identified depreciation on farm machinery as a significant profit robber. Since depreciation doesn’t affect your bank balance, it is easily overlooked. High loan payments […] Read more
Greig: Federal tax backtracks aside, much of impact still unknown
The Canadian Association of Farm Advisors’ annual tax update showcased confusion and frustration at the federal government’s shifting plan to change how small business is taxed. “I was very, very offended by all of this,” said Kurt Oelschlagel, of BDO Canada, who was part of a panel on the government changes at the CAFA event, […] Read more
Five questions to ask your accountant
It’s tax time again and there are a number of new or imminent personal and corporate income tax changes which could have implications for farm families on their 2016 tax return, or need to be discussed with the accountant to plan for this year. When the federal government announced tax changes in its 2016 budget last March it […] Read more
Get the most from your accounting
Tax Planning: Accrual financial statements provide the best for management decisions
Accrual is the way to go with farm financial statements, according to a farm accounting specialist. “Cash accounting only measures cash, and that has nothing to do with profitability,” says Beverly Johnson, a partner at KPMG Enterprise in Saskatoon. Accrual accounting is the measure of profitability, she says. Johnson has been a farm accountant for […] Read more
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 […] Read more
Build a farm budget with AgExpert
Make the most of your farm financial software by using it to develop your annual budget
The beginning of the new year is a good time to plan your farm budget. You can use the Budget Management Tool included with AgExpert Analyst to estimate your farm’s projected income, expenses and net profit for the year. When you’re projecting your farm’s income, take into consideration expected production such as crop yields, livestock […] Read more
Cyber-Savvy Farmer
