The 2022 FINPACK update brings changes to Tax Forms, incorporates new Financial Standards Measures, introduces a new Cash Flow Projection into our commercial tools and more!
Farm Financial Standards Update
The FINAN Financial Analysis and FINFLO Cash Flow Projection tools have additional financial ratios for your analysis needs. This revision is based on the 2022 Financial Guidelines for Agriculture from the Farm Financial Standards Council (FFSC). We have also added two new ratios — working capital to operating expense and debt coverage ratio. To learn more about these new ratios, see the improved Farm Financial Scorecard.
The latest FINPACK Credit Analysis update also adds an updated Cash Flow Projection component for commercial files. This new component allows for monthly or annual projections, and the projection can be for a few months or multiple years. This replaces the previous Annual Cash Flow Plan for commercial files. The C & I Business Analysis tool also includes updated RMA Annual Statement Studies data for 2022-23.
Presentations and Credit Decision Scorecards
Loan Presentations adds an auto-save feature which automatically saves the presentation every 10 minutes. To change this setting, go to the menu under Tools + Options when you are in FINPACK Credit Analysis but don’t have a customer file open. We’ve also added a risk rating report as a possible data source in the Credit Decision Scorecard tool. This allows the use of a risk rating score in your Credit Decision Scorecard.
Global Cash Flow Analysis
In Global Cash Flow analysis, we’ve updated the data entry related to the debt payment information used in the analysis. The debt payments from the tax form or income statement for the business are the default entry. It is now more apparent that selecting debt payments from a beginning balance sheet is optional.
Update to Tax Forms
The 2022 FINPACK update also includes various changes to tax forms:
- Moves the “Interest on current debt” field from the “Cash Flow for Debt Service” section to the “Debt Information” section. This is used to calculate total debt payments.
- Schedule F – Adds a “Total debt coverage ratio (cash basis)” calculated field. This field represents the new debt coverage ratio calculation approach where debt payments include all interest rather than only interest on term debt. The previous calculated field “Term debt coverage ratio (cash basis)” is still included for consistency.
- Changes calculation of “Debt coverage ratio” to include all interest rather than interest on term debt on forms other than Schedule F.
- Schedule E – Fixed calculation issue of line 26 when line 21 is negative (loss).
Get the Update
The 2022 FINPACK update will be applied automatically in FINPACK+ later this month. On installed versions of FINPACK, the update is available now. While in FINPACK, simply go to HELP + Software Updates and follow the steps. Any questions, please reach out to our Product Support team, and we’ll be happy to help!
Find Out More at the FINPACK Lenders Conference
Learn more about the 2022 FINPACK update at the 2022 FINPACK Lenders Conference, Dec 13-14 at the Radisson Blu MOA. Get the latest updates in Ag and Commercial lending, enjoy our stellar lineup of speakers, network with fellow FINPACK users, and interact with the FINPACK team. Learn more and register today!
David Maguire became the FINPACK Relationship Manager in 2021. He helps Ag and Commercial lenders across the country understand the value of using FINPACK for credit analysis and loan management. David has worked in the marketing, training and education fields in Minnesota, Ireland and Germany.