Accounting Information And The Bottom Line

 

Using up-to-date accounting information in management decisions is a key driver of financial success.

 

The Dollar$ and Sense – Measuring the Tangible Impacts of Beneficial Business Practice on Canadian Farms study found the second top practice that drives farm financial success is the level of detail producers get from their accounting systems when making business management decisions. 

 

“We have all heard that you can’t manage what you don’t measure,” says Rick Dehod, farm financial specialist, Alberta Agriculture and Forestry (AF), Edmonton. “A sound accounting system is the basis from which a farm manager knows how their decisions affect their net income, and retained earnings. Understanding your accounting information and the statements and measurements it provides will help you, the farm manager, to improve the profitability and efficiency of your farm operations.” 

 

AF’s e-learning tutorial, Understanding Farm Financial Statements and their Measurement, is a resource for farm managers to better understand their financial information and their measurements

 

This e-learning tutorial explains eight key areas:

 

“A better understanding of what the farm operations accounting information is saying will lead to better decisions and greater financial success,” adds Dehod.