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Illinois | I haven’t read any of the replies, so I apologize if I am repeating anything. From a financial standpoint, the most important thing you can do is prepare a 100% accurate balance sheet (listing of assets and liabilities) at 12/31 each and every year. If you’d take the lead on this, as in you prepare it with your husband’s help, it will be a very valuable analysis tool. Do it as of 12/31 only, and be accurate as of that day. It doesn’t matter if corn prices go up or down on January 2, and it doesn’t matter if he is selling or buying more cattle the next week, just do it accurately as of that day.
With either the help of your lender or various management programs you can find online, you’ll be able to use that balance sheet plus your tax return to develop an accrual income statement, and this is a 100% accurate picture of what the farm made that year, regardless what the tax return by itself says. | |
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Farm wife talking. Please help me understand
