The Farm CPA
Paul is now part of the fourth generation in America that is involved in farming and hopes the next generation will be involved also. Through his blog he provides analysis and insight to farmer tax questions.
Dynamic Live Budget - Update
Oct 13, 2010
I have gotten a few requests on if there is software out there that will handle a dynamic live budget for farmers.
What I have found so far that works the best is to use an Excel spreadsheet. I have reviewed a couple of budgeting programs that are for me simply to complicated to work very well. Quickbooks has a fairly good budgeting feature (along with most other accounting packages). You can use these accounting programs to work up your budget, export it into an Excel spreadsheet and then set up your formulas for projected changes to the balance sheet and statement of cash flows.
The key area that is normally not addressed in an accounting software budget is the changes to the balance sheet and cash flow statement. These changes are almost as important or more important than the profit and loss statement. Only by incorporating all three statements will you get a dynamic live budget.
I have prepared these budgets for some of my clients in the past. I will work on creating a sample budget for a corn and bean operation that will provide quarterly information going out for a two year period. This would be an example of how the dynamic live budget will work.
Since I am busy with getting those pesky last minute extensions done and will be out of the office all next week on business, I may not get it finished until the last week in October, but when it is done, I will post it to our site.