Business owners put a lot of time and focus into operating their business, sometimes at the expense of financial accounting. When accounting is pushed aside, it can leave the business owner uncertain of their financial picture.
Keeping accurate and up-to-date records provides producers with the ability to evaluate all aspects of their business, and fine tune any areas that may need more attention. Records can be used as a management tool to track both income and expenses and make comparisons on a monthly, quarterly or yearly basis. This allows producers to see what is changing in their business and if a certain area needs to be evaluated.
Accurate, timely records also allow business owners to understand the present status of the business, and project where the business is going in the future. Financial statements provide the data to help business owners make informed decisions on where the business is going and create an image of what impact each decision may have on business profitability.
What’s more? Accurate records can save you money. One area that’s often overlooked is discounts. Proactively understanding your financial picture will help you identify and take advantage of discounts, which is one way to help you save money.
Another money-saving opportunity is to avoid unprofitable expenses such as penalties, interest and finance charges. With an accounting system such as CenterPoint, you can keep track of bill due dates and discount rates, allowing you to prioritize invoices based on where you can save the most money.
Farm Credit East can provide in-house record-keeping services or on-farm support. We will adapt to your business and its specific needs to provide you with high quality records and a financial team to be there for you as your business grows.