Farm Business Management - Moulamein (2 day event)
The overall intent of this workshop is to develop a greater understanding of Farm Business Management, in particular performance analysis, that was covered at a basic level in 2023. The workshop will be structured in such a way that new participants will still be able to be involved. This will be done via a ‘review’ session on day 1. A key focus of these workshops will be participants using their own broad data sets (those utilised in tax returns) on the second day to gain a high-level understanding of their business’s financial performance, and not just what is produced for the ATO. A range of high-level key performance indicators will be developed.
At the end of the two days, participants will clearly be able to distinguish between ‘paper’ and ‘real’ farm business performance and be able to consider and make ‘real and tangible’ decisions and take actions to affect their business performance. It is expected that the level of awareness, knowledge and new skills will be considerable. Ultimately it is hoped that the workshop will enable participants to move away from the ‘tax’ mindset to a ‘management decisions’ one when thinking about farm finances.
Workshop structure:
Day 1. (21 May)
Day 1 will largely focus on the use of the ‘case study farm’ to understand the concepts and terminology for analysing financial performance. This includes developing and interpreting Profit and Loss (gross farm income, costs, GMs, fixed and variable costs, overheads EBIT & returns on assets etc); Cashflow; Balance sheet. This process will identify those key financial indicators of performance and highlight those that are really only ‘book values’.
Key topics:
- Review of previous session
- Summary of performance measures- comparison of these\
- P & L
- Cash flow
- Balance sheet
- How to analyse performance (model farm)
Day 2. (22 May)
Day 2 will primarily revolve around participants utilising their own data to develop high level financial performance indicators that may include; Profit and Loss (gross farm income, costs, GMs, fixed and variable costs, overheads EBIT & returns on assets etc); Balance sheet.
Development of these performance indicators will be the basis of further discussion and analysis of how a farm business can look at areas for change in order to drive profit or take the business in the desired direction. Participants will also learn about the role of budgeting in decision making and be introduced to a number of budget templates.
Participants will need access to sufficient financial data. In most cases the most recent tax return, or P&L reports from an accounting package will be appropriate.
Key topics:
- Work through performance analysis of own farm
- What are your performance indicators telling you?
- Manipulating indicators to project change in performance? (identify areas to improve/ adjust)?
- Using a budget to support decision making
Book now by contacting Paul Simpson. Please note: There is a maximum of 15 participants per workshop. Lunch is included.
When
21 May 2024 8:30 am - 4:00 pm
Contact
Paul Simpson
Senior Land Services Officer – Mixed Farming Systems
Phone 0439 384 749
paul.simpson@lls.nsw.gov.au