Spreadsheets vs. Software

Spreadsheets vs Software in Credit AnalysisAre you still using spreadsheets to complete the annual credit analysis on your customers?  Do your spreadsheets provide you the best information on a customer’s financial position?  Have your spreadsheets left you with questions related to your bank’s true risk?  If so, FINPACK Credit Analysis Solutions software is the tool you’ve been looking for! [Read more…]

How to Use the FINPACK Loan Calculator

How to use FINPACK Loan CalculatorThe FINPACK Loan Calculator is a useful tool as you enter or edit loan payment information into a Balance Sheet, Cash Flow Projection, Long Range Plan, or Financial Analysis in FINPACK.  The loan payment details from the Loan Calculator can be pasted into data entry, or it can also be used as a freestanding tool to brainstorm possible loan payment options.  When using the calculator in freestanding mode, the information cannot be pasted into FINPACK.  Here the only option is to View Payment Schedule and print or export the schedule.

There are two types of repayment options in the FINPACK Loan Calculator – amortized payments or fixed-principal payments.  The type of loan being modeled will dictate the specific calculator chosen.  [Read more…]

Top 5 Cash Discrepancy Culprits

Top 5 Reasons for Cash DiscrepanciesThere are always tricky situations that leave you scratching your head on how to get a customer’s year-end analysis balanced when it comes to cash in and cash out.  Whether you are using the Schedule F Cash to Accrual Analysis or the Financial Analysis (FINAN) there are some common culprits to track down cash discrepancies in these tools.
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Farm Incomes Take Another Dip in 2017

Farm Income Takes a Dip in 2017

Minnesota farmers experienced their fifth consecutive year of low profitability in 2017. The median farm earned $28,551, down slightly from just over $36,000 in 2016.  Declines in farm income were largely driven by low profits and losses for cash crop farms, while livestock farms, in general, had a better year.  With average investment of over $2 million, farms earned a 2.2% return on investment. Across all farm types, almost one-third of farms lost net worth in 2017.

Those are among key findings in the annual farm income analysis conducted by University of Minnesota Extension and Minnesota State in collaboration with the FINPACK Team and the Center for Farm Financial Management (CFFM). The analysis used data from 2,164 participants in the Minnesota State Farm Business Management programs and 104 members of the Southwest Minnesota Farm Business Management Association. Participating producers represent approximately 10 percent of commercial farmers in Minnesota.  CFFM’s work with projects like this provide the benchmarking metrics used in FINPACK.  The full FINBIN report on MN Farm Finances can be accessed here[Read more…]

2018 National School for Experienced Ag Bankers

2018 National School for Experienced Ag BankersThe FINPACK team wants to alert you to an outstanding educational opportunity – the 2018 National School for Experienced Ag Bankers, being held June 25 – 29 at Black Hills State University in Spearfish, SD. CFFM has had a long relationship with this school, our staff is as part of the teaching team, along with a talented group of seasoned ag bankers.

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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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