Tuesday, December 15, 2015

Was your farm profitable in 2015?

Alberta Agriculture and Forestry

Alberta Agriculture farm financial specialist Rick Dehod says that, with the 2015 financial year quickly coming to a close, it is a good time to gather information to convert cash statements to accrual income and expenses statements. Unfortunately, he says, many farmers really won’t know if their farm was profitable in 2015 if they haven’t accrued their income statements.

"The majority of Alberta farms are sole proprietorships and they report their income and expenses on a cash basis but very few take the opportunity to accrue their statements to get a true picture of profitability," he says.

Accruing your income expense statement also gives one the information so you can accurately determine the costs of production.

"It's imperative to convert your cash statements to accrual," he says.  "It'll allow a producer to make better decisions for the future."

To learn how to accrue income and expense statements go the Income and Expense Statement.

For more information, visit the Farm Manager homepage or call the Ag-Info Centre toll-free in Alberta at 310-FARM (3276).

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