National Farm Viability Conference

The balance sheet provides a wealth of information about a business and is woefully under-appreciated by most farmer/entrepreneurs. It can quickly clarify many details of a business: 1) The accuracy of the bookkeeping system. If there are mistakes, they show up in the balance sheet and it can be a signal that the other reports aren’t accurate. 2) Cash flow. Not just, “where did the cash go?” but also, “what are my cash needs in the near future?” 3) Can you get a loan? 4) The long-term health of your business. In this session, we will use examples of actual farm balance sheets and discuss how the "secrets" of the balance sheet will tell your clients exactly what is going on in their business.

The learning objectives are:
- Understand the basics of the balance sheet and why it’s such an important management tool.
- Understand how the balance sheet can help farmers manage their cash flow
- Understand the nuances between cash flow and profitability, and how the balance sheet can clarify that.
- Understand how the balance sheet can clarify how farmers can build wealth and equity.