As planting season approaches, farmers’ minds are on preparations for the busy season, and rightfully so. Soon it will be full speed ahead to get the crop in the ground in an optimal timeframe.

But here’s something that needs to be done before the farm leader is busy directing everyone’s activities. It can be beneficial to get processes in place to make sure the business side of the farm continues to run smoothly, at the same time growing season operations roll along.

The books are back

One aspect of the farm business that can tend to go by the wayside once growing season hits is the farm’s books. This often depends a lot on who is responsible for keeping the books. They may have growing season duties that are time-sensitive to growing a great crop. Or the farm leader is also responsible for the books – and already has so much to do that time of year.

The books can fall further and further behind when times are busy on the farm, making it tough to truly know where you’re at financially. And without solid financial information, it can be hard to make good decisions for the operation.

How can the farm’s leader make sure the books stay up to date even during the busy season? It can help to have a game plan ready for the books, similar to planning for planting season activities.

Questions for your plan

Here are a few aspects to think through as you build your farm bookkeeping game plan. First, who is primarily responsible for the books? Do they have a lot to do during the growing season that may keep them from making sure the books are up to date? Consider who is best suited to do this. Do they enjoy dealing with numbers and details for long periods of time?

On many farms, the person keeping the books may be a spouse or other family member or employee. Do they have the opportunity to continue focusing on the books – even during busy seasons? You could consider engaging a third party who specializes in farm bookkeeping. When someone off-farm is keeping your books, the fact that it’s growing season doesn’t have an impact on timeliness.

It’s also important to consider the type of information you want out of your books. What financial reports do you use? Are there certain metrics you’re tracking from your financial information? How are you using that information to make decisions for your operation? Do you know if the information you’re using is as accurate as possible? Is it as detailed as you would like it to be?

Finally, what systems or processes do you have in place so information flows smoothly – between the farm’s leader and the bookkeeper? How does information about new purchases, financing or loans get to the bookkeeper? How and when are financial reports communicated to the farm’s leaders?

Answering these questions now and getting a game plan in place for the farm’s books – not just for the growing season but year-round – can help ensure things run smoothly.

The opinions of the author are not necessarily those of Farm Futures or Farm Progress.