FROM GOOD TO GREAT?  FIND OUT WHY.  FIND OUT HOW.  YOU KKNOW WHERE:  JUNE 9^th's  PORKSHOP.2004 - THE BEST EVER!

Let's say you've been managing a good mid-sized operation, but now you've set your sights on being "great."  Well, in addition to commendation, you can be assured of three things:  

1) you're aiming at an upwardly moving target;
2) a timely, thorough and accurate management information system is mandatory;
3) your chances for success and growth are the highest they've ever been - even against the most formidable competition.

    One of your first steps should be PORKSHOP.2004.  Now in its 12^th year, the only independent seminar at World Pork Expo focusing on financial management will help you build a plan.  We'll begin by sharing some practical strategies FBS clients are adopting in their quest from "Good to Great," and compare them to the findings by Jim Collins in his best-selling book by the same name.  We'll continue with a panel of our e.CLIPSE MIS users telling you directly how integrated information systems (linked production/financial data) helps them make better decisions.  The panelists are Matt Lux from e.CLIPSE pioneer, Schwartz Farms, Sleepy Eye, Minnesota and Darwin Hall from a new, but demanding client, Hintzchse's, Maple Park, IL.
    The plan will move through the next five segments - a mix of valuable instruction that further defines the PORKSHOP series (nearly as old as WPE itself) as the premier training event in pork software.  Concluding the half-day's activities will be dinner, followed by a very thought-provoking and entertaining "Good to Great" panel discussion by two nationally-known farm editors:  Rod Smith, who covers events, issues and trends in the livestock and poultry sectors for Feedstuffs, and Dan Looker, Business Editor at Successful Farming, publisher of the "Pork Powerhouse" list.

Rod Smith from Feedstuffs	Dan Looker from Successful Farming

    For the complete program, please visit our website.  Now then, how about you?  Should you be signed up for PORKSHOP.2004?  The only prerequisite is stated in the first line: the aspiration to ascend from good to great. That should apply to a range of people – non-users of FBS software, even users of our own software (regardless of operation size or level of computer experience) and ag consultants.  You'll come away with the solid basics of a plan, perhaps even a whole new direction, and a knowledge of the software that helps realize plans and lead to right directions, validating our claim that PORKSHOP.2004 is the best one ever!
    The time is 1:00-8:00 p.m.(12:30 p.m. registration), Wednesday, June 9^th.  The place is the Holiday Inn, Downtown Des Moines.

    Don't miss out on early sign-up savings. Deadline is June 4. Contact FBS at 800.437.7638 or sales@fbssystems.com to make your reservations today.

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Over the past five months we've touched on a few of the fundamental differences between traditional agricultural financial statements and "New World" of financial reporting:

•	Three levels of financial accounting (Cash-Basis/Black Box, Cash-Basis/User-Supplied Data, Accrual/Managerial Accounting)
•	Eight conflicting goals of farm records
•	Managing vs. reporting by cash and accrual
•	"Rolling up" managerial accounting inventories into financial reports
•	Types of inventories (Direct Materials, Work in Process, Finished Goods)

    This time, we'll address a very basic accounting concept that is rarely used or appreciated by most farmers.   It's expressed in this simple equation used in virtually all balance sheets:

Assets = Liabilities + Equity

    On the other hand, "net worth statements," used by most farmers and their lenders are based on this equation:

Net Worth = Assets - Liabilities

    Do you catch the difference?  In a true balance sheet, assets must equal the sum of liabilities and owner equity, otherwise the balance sheet doesn't "balance".  On the other hand, a net worth statement (often incorrectly called a "balance sheet") always balances, since net worth is calculated by subtracting assets from liabilities.  Voila!

    Here's a table comparing the two approaches:

Farm Net Worth Statement	Balance Sheet
Owner equity calculated	Owner equity ledger accounts
Single entry or external system	Double entry accounting system
Periodic inventories	Perpetual inventories

    So what's the benefit of moving from a net worth statement that always "balances" to a true balance sheet that "must" (but occasionally doesn't) balance?

•	Commercial lenders expect it
•	It's proof your accounting system is under control
•	It's the natural bi-product from double-entry accounting
•	Your accountant will trust it and perhaps even help you maintain it

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A while back, you had just settled in for an evening meal and the phone rang.  It could be that important business call.  It could be your son announcing you're a brand new grandparent.  It could be a neighbor inviting you for a weekend at their lakeside cabin.  So, you walk to the phone buoyed with the anticipation of welcome news.  But you're soon de-buoyed with sinking expectations when you learn the caller is your first telemarketer.
    Hypothetical, yes, but the scenario has a ring of truth, doesn't it?  Some telemarketers' practices, particularly their ill-timed repetitiveness, have led not only to use of screening methods but even regulation.
    True, FBS is a telemarketer, but we don't cold canvass or resort to intrusive measures to gain new clients.  We adhere to fundamental courtesies and employ "Permission Marketing"–the premise of which is we will never call you as a prospective client until you contact us first, unless, of course, you are a definite referral.  Also, we'll make a follow-up call during business hours if you respond to any of our advertising/publicity, e.g., ad/story, direct mail, Web site, etc.; request product literature; or register at our show booth.  Thereafter, calls will be kept to a minimum, as we will check with you only occasionally as long as we know you still have an interest.
    We are equally prudent with our e-mail policy.  Only significant events, e.g., new product announcements, seminars, etc., justify mailings to our clients.  In fact, we publish our newsletter under the mantra "information without intrusion."
    If we should ask you for information about your operation, such as we do in association with free gift drawings, the data will be very basic in nature but will nonetheless be treated in the strictest of confidence.

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All invoices for the 2004 TiMEsavr upgrades and support plan renewals have been mailed.  Be sure to check yours for the coupon, which is good for a $20-$40 discount if redeemed with your payment by June 10, 2004.
    Also, if you remit by June 30, '04, you automatically receive a Client Appreciation Program (CAP) discount.   Many of you already have a 20% credit "in the bank" that can be worth $200 for Crop Audit Plus, $300 for Smart Feeder, even $300-$400 on the e.CLIPSE inventory valuation module.
    So why not send your payment by June 10 to take advantage of both opportunities and save the most you can?  If you have questions about CAP and the amount of credit you've accrued, call your FBS sales representative.

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•   Welcome!

New client Gangwish Seed Farms, Inc., Shelton, Nebraska.

•   In the News!

Two FBS clients were featured in the May 15, 2004 National Hog Farmer article, "Management in a Low-Margin Market."  Bert Huftalin, Malta, Illinois, uses feed budgeting software interfaced with his mill and confirms the phases are advancing to the right weight through an automatic scales.

Strawn, Illinois, president of the Illinois Pork Producers, Art Lehmann is concentrating on the "small details" to control input costs and monitoring production.

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sales@fbssystems.com
800.437.7638