Make Improving Financial Recordkeeping a Goal in 2022

Make Improving Financial Recordkeeping a Goal in 2022

From Clemson Agribusiness Agent Kevin Burkett.

As we get started in a new year, resolutions abound, and we set our sights on making improvements over the previous year. A goal of the Clemson Agribusiness team is to help farms improve financial record keeping and in turn, be able to make decisions based on those records.

One question that’s important to answer is: why? Why should a producer care to record their transactions? There are several reasons, but one major factor is simply being able to make good decisions for the farm. It would be difficult to make decisions with incomplete information. Other benefits include records needed for tax and other reporting purposes, USDA program sign-ups, determining the value of the business, budgeting, and the ability to make improvements over time.

The most successful producers are generally the ones able to make incremental changes to their business year-over-year. Meaning a small reduction in cost and a small increase in revenue from last year could end up being the difference between being profitable or not. Good records enable producers to see areas where changes are possible and ways that the business can improve upon what they are currently doing. If you think you or someone you know could benefit from improving their farm financial records, reach out to Clemson Extension Agribusiness at kburke5@clemson.edu or 540-239-4602.

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