Utilizing Financial Records (BF 104)
Analyzing Your Records for Management and Profit
What do you need to do to prepare for operating your business with sound financial information? Every business creates a great number of records in a variety of media. This course will concentrate on analyzing financial records. Records can help determine the absolute and relative profitability of the farm business by identifying the strengths and weakness of the business. Only with these records can you see strong points to capitalize on and weak points requiring corrective action, taking decisive action to ensure the long-term success of your farm. Please note: this is NOT a course on how to set up QuickBooks, although the instructors are available to provide some one-on-one assistance if you have questions related to your records in QuickBooks.
Farmers with a minimum of 1 year of experience who are seeking to analyze their financial records and learn to read their farm’s fiscal health through financial statements.
“Most valuable for me was learning about the various methods of measuring/tracking farm financials and understanding how each contributes to a better analysis of farm viability and better diagnosis of threats to long term profitability.” -Sarah L, Mt. Horeb, WI
After completion of this course you will:
- Be familiar with how a financial record keeping system is organized and why it is beneficial for success.
- Be able to review many financial record keeping system to start financial data collection on your farm.
- Learn to calculate simple business ratios to assist in management decisions.
- Discover requirements used by lending institutions to make loan determinations.
The bulk of the course happens on your own time, with discussions, readings, and assignments in MOODLE, our virtual classroom. To add to the experience, webinars will be woven into the online interface of the course to allow you to meet on a weekly basis to learn from presenters and ask questions in real time. If you miss one, they are always recorded and posted for later viewing.
You will also have access to one-on-one time with the instructors to help you with the logistics of setting up your record-keeping system.
The course is taught by Bonnie Collins, accountant and Cornell Cooperative Extension Resource Educator in Oneida County, NY, and
Stephen Hadcock, Capital Area Agricultural and Horticultural Program, NY.
This course will not be offered in 2015. Dates for 2016 will be announced in Aug 2015, and registration will open then.
- Week 1 – Recordkeeping – Maintaining accurate and timely financial information is a must to be successful in business. Appreciate why keeping farm records is essential. Learn about different record keeping formats, become familiar with how these systems are organized and why it is beneficial for farmers. Learn how to work with a qualified professional.
- Week 2 – Preparing Financial Statements – Financial statements have a value that goes far beyond preparing tax returns or applying for loans. Learn how to prepare these essential documents for decision making, shareholders, and potential lenders.
- Week 3 – Cash Flow Management – A healthy cash flow is essential to any business and creating a reliable cash flow system will help keep your business solvent and growing. Learn the difference between cash flow and profits. Be able to set up a simple spread sheet program to start collecting farm data reflecting cash flow.
- Week 4 – Analyzing Your Financial Position - After you’ve gotten the basics of financial record keeping, financial statements, and cash flow down pat, you will learn to look deeper at the financial state of your business. Discover some of the most commonly used tools for financial analysis and money management.
- Week 5 – Filling the Gaps – Getting Financing - Securing funds is as tough as ever. Learn how to estimate the amount of capital you will need and what financing options are available for your startup or continuing business.
- Week 6 – Implication of Key Financial Decisions – Understanding the implications of key financial decisions will provide the basic components for a sound financial plan. Learn to review the marketplace and other potential business opportunities.
Cost and Registration
Fee for this course is $200. It will next be offered in early 2016, with dates announced and registration opening in mid-August 2015.