Farmers prefer to spend most of their time in the tractor or barn, and less time developing financial statements. Because of this, many farmers and ranchers struggle when preparing financial records for their businesses. Here at the Center for Farm Financial Management, we are often asked for guidance in developing and interpreting financial statements for farmers and ranchers. To help with this, we created the Developing & Interpreting Your Financial Statements and Measures site, a hub for producers looking to improve their financial management skills. This free resource consists of two online courses which give producers information needed to become better financial managers of their business.
Developing Your Financial Statements and Measures
Discover the building blocks of which financial records to collect, how to organize those records into financial statements, and how to calculate the important ratios used in farming operations. Learn about accounting and record keeping while showing how to prepare the four main financial statements:
- Balance sheet
- Income statement
- Statement of owner’s equity
- Statement of cash flows
Interpreting Your Financial Statements and Measures
The Interpreting Your Financial Statements and Measures course builds on skills learned in DYFSAM—taking them to the next level. This course focuses on interpreting financial statements and measures in order to better manage day-to-day operations of a farm business. The same four main financial statements are evaluated, as are the most important agricultural ratios and measures. Users learn how to interpret and better use financial statements for farm management and gain more self-confidence in the area of finance.
Why Direct Your Clients To These Valuable Tools?
Both you and your clients will benefit from their having a greater understanding of financial statements and measures. The increased knowledge from DIFSAM will empower your clients to take greater charge of their financial monitoring and understanding, which would reduce the amount of time and energy you’re putting into starting them from point 0. They will also be able to take more away from your meetings with them. And with a greater ability to monitor their finances, your clients will be empowered to achieve greater financial management of their operations.
The tools are perfect for farmers, ranchers, and ag professionals, helping them discover how to create financial records, find out how to interpret and use financial statements, and vitally, do so at their own pace. They can take daily farm financial records, build them into quality financial statements, and learn to interpret and effectively use them to improve farm management. Developing & Interpreting Your Financial Statements and Measures is free, easy to use, and available online.
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Pauline Van Nurden is currently the Associate Director for the FINPACK Team. She has been with the team since 2017 as an Economist.
Prior to joining the FINPACK Team, she worked as a lender. This provides her valuable industry experience and knowledge in her work with FINPACK. Pauline holds a Master’s Degree in Agricultural Education and Bachelor’s Degree in Applied Economics, both from the University of Minnesota.