Farm businesses need the services of an agricultural accountant. In many instances, farm businesses are large corporations. Farm accountants provide an essential service for farmers, helping them anticipate expenses, track expenditures, and ascertain ventures that will be most profitable – such as planting more corn, wheat or soybeans and letting field lie fallow.
Reporting and tracking farm expenses pose some interesting challenges. Cash basis accounting is one type of method to report income and costs and can be used to report taxable farm income. Farm accounting is utilized to record all goods, money and services used in the farming industry.
A farm accountant will deal with a variety of aspects relating to their client, from cash flow, day-to-day expenses, government subsidies when applicable, and even estate planning. Farm accountants provide a wide range of information to their clients to help them make informed and strategic decisions about their business and potential risks.
Agriculture plays a major role in the nation’s overall economy, just as much as oil and other resources. The accounting specialists will need an extensive variety of knowledge. They’ll need to be cognizant of fluctuating costs and prices, have an understanding of how unpredictable weather affects the business, and changing commodity prices locally and around the globe.
Farming is a unique type of business with special challenges. Farmers always have the last decision, but they rely on an agricultural accountant to help them plan for purchases of land, equipment and the operation of their business. Agricultural accounts are responsible for filing taxes on time, accounting for assets, liabilities and depreciation, along with meeting specific government regulations and definitions.
Farm accounting is an ideal profession for anyone that loves numbers and farming. They’ll be called upon to keep track of arable land to native plants, pasture to crop production, changes in land use, and even green/sustainable farming practices.
At Peavy and Associates PC our mission is to assist you with all your tax preparations, payroll and accounting needs. We provide our clients with professional, personalized accounting services and guidance in a wide range of financial and business needs. Give us a call today and discover why our clients return to Peavy and Associates, PC year after year!