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…]