Farm Management Software Blog

Management Accounting Automation--the "Virtuous Cycle"

Posted by Norman Brown on Fri, Apr 19, 2019 @ 01:57 PM

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Tags: farm management accounting, activity-based costing, cost drivers

Management Accounting Automation

Posted by Norman Brown on Fri, Mar 29, 2019 @ 04:24 PM

(Part 5)  

The following is a summary of a presentation entitled "Financial and Management Accounting Software--Developments, Implementation Challenges, and Integration Issues" made in July 2018  to the Farm Financial Standards Council Annual Conference in Champaign, Illinois.

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Tags: managerial accounting, farm management accounting, agricultural managerial accounting, activity-based costing, work in process

Why Wait 'till 2025 for Integrated Farm Records?

Posted by Norman Brown on Tue, Dec 17, 2013 @ 08:03 PM

Twenty Twenty-Five is the target date that Farm Journal Top Producer predicts for “ Fully Integrated Farm Records” in its Mid-November 2013 issue.
However, we believe most of the “goodies” envisioned in the article can be under your tree by 12/25 rather than 2025.

Here’s the real  state-of-the-art for integrated farm records:
  1. Connecting production data directly with accounting software.  FBS already includes “tight and right” integration between production activities/inventories and accounting based on common definitions that simplify input and produce comprehensive reports.

  2. Dozens of data silos.  Last month we touched on the 50 or so sources of data we can import from, including precision farming technology, feed mills, packers and Conservis apps.  Perhaps these diverse products will be more standardized in the years ahead through initiatives from organizations like AgGateway and informal market forces.

  3. Converting production to accrual.  E.CLIPSE managerial accounting automatically converts activities to costs that flow from raw materials through work in process through finished goods on the balance sheet to cost of goods sold on the income statements.

  4. More accurate equipment and labor records.  E.CLIPSE also performs activity-based-costing to monitor the resources consumed through each phase of production and match those costs with hours, acres, miles, bushels, pounds and head.

  5. Electronic invoices.  Even though there’s little standardization yet in agribusiness FBS can already import invoices and sales receipts from a wide range of formats and transfer the management detail (quantities, groups, fields, products) as well as the dollars into the farm’s central accounting and management information system.

  6. Smart data/measuring what you manage.   Rather than viewing accounting as a “rear-view” of a business used to determine historical “cost of production” for raised products (which are often affected by external factors like weather and disease), activity-based costing evaluates the efficiencies and margins of each responsibility center.

  7. Virtual CFO.  Just as progressive, growing operations rely on internal specialization and outside consultants for production analysis they are also tapping into virtual CFOs and controllers who can remotely oversee the financial details of the business.

  8. Google Glass.   OK.  Unlike the other technologies, most of us will have to wait a few more months before we find this “toy” in our stockings.

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Tags: accrual accounting, agricultural managerial accounting, agricultural software, Top Producer Magazine, activity-based costing, Farm CFO, integrated farm software

Are You a "Big Bucket" Farm Accountant?

Posted by Norman Brown on Wed, Jun 12, 2013 @ 03:31 PM

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Tags: cost accounting, accrual accounting, farm financial reporting, agricultural managerial accounting, farm software, ag software, agricultural software, Cost center allocation, Farm Financial Standards, activity-based costing, farm financial standards council, FBS Systems, Farm Margin Management, farm profit centers, integrated production and financial software

Monitor Your Farm Financial Health

Posted by Norman Brown on Fri, Apr 26, 2013 @ 09:53 AM

Chris Barron of Carson and Barron Farms and a columnist with Top Farmer Magazine, introduces encourages a proactive approach to farm margin management in the recent article, Financial Fitness for Tomorrow.

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Tags: cost accounting, agricultural managerial accounting, farm software, ag software, agricultural decision support, agricultural software, enterprise analysis, farm budgeting, activity-based costing, Farm Margin Management

Is Your Farm Management System Stuck in a Rut?

Posted by Norman Brown on Wed, Sep 26, 2012 @ 11:16 AM

“Choose your rut carefully. You’ll be in it for the next two hundred miles.”

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Tags: managerial accounting, cost accounting, farm financial statements, accrual accounting, agricultural managerial accounting, farm records, farm software, best practices, farm budgeting, agricultural inventories, activity-based costing, Dick Wittman

Has Farm Enterprise Analysis Lost Its Usefulness?

Posted by Norman Brown on Tue, Jun 26, 2012 @ 07:49 AM


In 2008 the Farm Financial Standards Council (FFSC) published Management Accounting Guidelines for Agricultural Producers.  These recommendations prompt these questions regarding traditional farm enterprise analysis:

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Tags: managerial accounting, farm financial statements, accrual accounting, farm financial reporting, agricultural managerial accounting, Farm Financial Standards, cash or accrual, activity-based costing, farm financial standards council, Purdue Ag Economist, Dick Whittman, Freddie Barnard, Barbara Wheeling, Alan Miller

Does Margin Analysis Require Activity-Based Costing?

Posted by Norman Brown on Mon, May 28, 2012 @ 08:55 AM

"Let’s not make decisions based on isolated, arbitrary assumptions such as indirect cost allocations."

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Tags: farm management accounting, cost accounting, agricultural managerial accounting, Cost center allocation, activity-based costing, farm accountant, FBS Systems, CliftonLarsonAllen, Paul Nieffer

Why farm production record systems can't provide accounting control

Posted by Norman Brown on Thu, Apr 26, 2012 @ 02:35 PM

Can you trust a report that's not backed by accounting data?

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Tags: accrual accounting, agricultural managerial accounting, farm inventories, agricultural inventories, quickbooks, activity-based costing

Farm Futures Identifies Benefits of Management Accounting

Posted by Norman Brown on Thu, Feb 23, 2012 @ 08:23 PM

You can count on the "Extra" edition of Farm Futures magazine to concentrate on relevant management topics.  The 2012 edition, Power Up Profits, contains two articles that dovetail nicely with the objectives of FBS Software.

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Tags: managerial accounting, farm management accounting, cost accounting, agricultural managerial accounting, activity-based costing, Mike Boehlje, Purdue Ag Economist