Annual Business Review
This is comprised of two sections:
- A detailed analysis of the previous year's performance, both physically and financially, with assessments of key production and performance ratios and indicators. Enterprise margins and a calculated profit analysis are also compiled using the Farmanco APlus analysis software. The software used maintains historical performance records such as rainfall (20 years) crop production (10 years) livestock production (5 years) cashflow, equity, profit and various other ratios and indicators (5 years). The analysis is particularly valuable as a benchmarking resource comparing your performance to others in the same industry and showing levels of returns on investment that can subsequently be compared with other industries.
- Review the cashflow budgets, supporting data (worksheets) and position statement developed by the client, or compile these if requested to. Budgets can be for one, two or 10 years and can include a steady state "Year In Year Out" budget. The forecast data is analysed in the same way as the historical data. A critical analysis of the strengths and weaknesses of the business is carried out and any required action is taken.
Submissions for finance
Banks and other financial institutions demand detailed reports
on the financial plans of a business, before providing finance.
They also require appropriate information with which to conduct
yearly reviews, information that your consultant can provide. Your
consultant can assess the level of debt, interest rates and
the structure of the debt. Various recommendations can be made as a
result of this assessment, including refinancing debt as an
option to assist the financial position of the business. Farmanco
has a good reputation with banks for providing high quality
business reviews and finance applications.
Property Purchase/Leasing/Sharefarming
The purchase, lease or sharefarming of land is a big commitment and needs to be carefully examined. Farmanco can provide an opinion as to the suitability of the land and help prepare physical and financial plans to demonstrate the viability or otherwise of the proposal. Farmanco has developed "Year In Year Out" and Lease Analysis programs to assist with decision making, including prices to be paid. Important content for lease (short-term and longer-term) and share farming agreements can also be provided.
Machinery Purchase
The purchase of large items of machinery needs to be adequately investigated so that clients obtain the best deal, use an appropriate form of finance and ensure that the purchase adds value to the business. Farmanco has developed spreadsheet models to help with the analysis of machinery costs and to compare replacement options.
Farm Office Systems
Cashbook Coding
A set of standardised codes on disc can be provided for loading into cashbook software. These have been carefully thought out for farming businesses and facilitate easy extraction of data for analysis, to provide your business with benchmarking data. These codes can always be modified. Farmanco significantly contributed to developing codes, and how to use them for a variety of transactions, with respect to the introduction of the Goods and Services Tax (GST). This, in addition to providing input to the cashbook software developers, greatly assisted clients during the GST transition period.
Cashbook Software
We recommend that our clients use Agrimaster as their recording and budgeting software, but are able to work with other software programs including Phoenix and MYOB.
