Why Do Accrual Adjustments Matter?

Why Accrual credit analysis, FINPACK AgricultureCash is king! Every business needs cash to meet its financial obligations. But how much cash a farm generates is not a very good indicator of how the business is performing.  One of the main reasons is cash basis taxation. The right to file taxes based on cash rather than accrual income gives farms tremendous flexibility to manage taxable income. The result is that very high performing farms and farms that are struggling financially often have similar bottom lines on their Schedule F’s. [Read more…]

Handling Trades on the Balance Sheet

Trading machinery and equipment is common for all types of businesses.  The Fall 2017 FINPACK update allows more streamlined data entry of capital purchases, sales, and trades within FINPACK.  By entering extra detail on the FINPACK balance sheet, you can bring the details of these capital transactions into other FINPACK analysis tools, like Schedule F Cash to Accrual and Earned Net Worth Analysis.

On the balance sheet, data entry fields have been added to allow for the entry of purchase price, year sold, and sale price for machinery and equipment; titled vehicles; buildings and improvements; and land.  Purchases or sales of capital assets has very straightforward data entry.  Data entry for a trade should include:

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