NFCS: Cash Flow Budget Can Help Farmers Throughout the Year

Stretching that dollar is vital for farmers to be successful.  And to help, Northwest Farm Credit Services is offering tools to help balance the budget.  Carl Sohn, Vice President of Customer and Employee Education at NWFCS, says one of the most effective tools is the Cash Flow Budget.  He said it allows you to adjust you budget, good or bad, as the year continues.

“As the actual results come in for the year, you can populate your budget with the actual results in those early months and see how that effects the results later in the year and then plan accordingly.  If you have to adjust your plan, and then, power thing, you see that, before it actually happens.”

Sohn said that allows you to address a cash shortfall before it happens.  He acknowledges a Cash Flow Budge requires more work, more pencil and paper, but it will improve operation discipline, which is better for your long-term goals.

“One, your business goals and your vision, and two, thinking in the longer time frame, and what the steps and decisions that you make thorough the year do to affect your ability to achieve those goals and end results you’re looking for.”

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