FBS User Conference, Danny Klinefelter on managerial accounting and precision farming, FBS user survey, Balance sheet doesn't balance.
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 FarmSMART                                                 February 2017 

In this Issue:

FBS User Conference Scheduled

Klinefelter on Managerial Accounting

FBS User Survey

Trade Show Calendar

March Free Webinars

Q&A:  Balance Sheet Doesn't Balance 

Five Ways FBS Prepares and Protects

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 Dear Friend,

We try to be selective with our winter trade shows, concentrating on the events that bring in a national or regional audience such as the National Farm Machinery Show in Louisville, the upcoming Commodity Classic in San Antonio and the Iowa Pork Congress (pictured above) which draws from 5 states.  While we look forward to the personal contact we have with our clients and prospects we have at the "carnival," the real work gets done by our staff who support you from the home office or travel to your farm.

By far the most productive event for FBS clients and staff is our annual User Conference. Read about it below.

Also in this month's FarmSmart:

  • How do you use FBS?
  • Danny Klinefelter on managerial accounting.
  • Trade show calendar.
  • March free webinars.
  • Link to recorded webinars.
  • When your balance sheet doesn't balance.
  • How FBS prepares and protects.                                                                                                                                                                                                 SDG

 


FBS User Conference Set for August 22-23

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Even though the planters are still in the shed it's not too early to plan for the premier farm management computer event of the year which is now scheduled for Tuesday, August 22 through Wednesday, August 23 at the Stoney Creek Inn, Moline, Illinois.  Watch upcoming issues of this newsletter for details on speakers and topics.


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Klinefelter at the 2015 FBS User Conference.

Will the Marriage of Managerial Accounting and Precision Farming Yield an Exponential Advantage?

 

According to Danny Klinefelter's February 2017 Progressive Farmer article only about 5% of farms today use managerial accounting, but they will be the ones best able to adapt to ag’s changing economics.  The Texas A&M professor and TEPAP founder also notes that just as site-specific farming offers more precise agronomic information, managerial accounting helps costs drill down to the field level.

"The results can make an exponential difference. We have much more site-specific technology today. This matches your agronomic firepower with your accounting. You’ll know your real cost, in real time, not guesswork based on gut instincts," says Klinefelter.  "Managerial/cost accounting is one thing lacking in the need to run a farm as a professional business."

"Farmers need to be able to drill down into data to know where they’re making money and where they’re losing it. This is more than just enterprise accounting. This is knowing the difference between farms, between fields and between different enterprises on each. It’s also important in analyzing and negotiating rents, as well as knowing the true cost of work in process inventory. Adding in the real-time and site-specific information available from Granular (a company where I serve on an advisory board), Conservis and similar managerial software providers is critical for analyzing chemical, fertilizer and seeding rates." (FBS links with both of these companies as well as numerous precision farming systems.)

Klinefelter also notes that the most used managerial accounting software are from Red Wing and FBS Systems and emphasizes the value of user groups and a cost-shared "virtual controller."  (FBS facilitates both of these practices.)

Click here for Danny's entire Progressive Farmer article and call 800.437.7638 for more information on FBS's E.CLIPSE Managerial Accounting and MACH 2.0 precision farming interface.


How Do You Use FBS?

Last month we shared results of an online survey where we asked our clients"Why do you use FBS Software?"  While those answers help us understand the initial motivation for choosing FBS, we wanted to go deeper so we also asked them "How do you use FBS Software?"  Their answers below reveal the priorities and accomplishments of among our four tiers of support plans.

Basic Support
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Priority Support
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VIP Support
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Corporate Support
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 Summary:

  • All respondents are using FBS for "Cash/Tax Accounting," which is not a surprise considering nearly every U.S. farm files taxes on a cash basis.  In fact, we'd expect the same response from farm users of any brand of accounting software.  
  • The next most popular use for FBS Software is a tie between "Enterprise Analysis," "Accrual Accounting" and "Management/Cost Accounting."  This is where the "men" are separated from the "boys" in the accounting world.  Most off-the-shelf accounting programs and even most ag programs are either restricted to cash accounting or you must choose between cash and accrual.  While many ag systems will perform some type of enterprise analysis, few accounting programs can do true management accounting.  (See Klinefelter article above.)
  • Unlike users of any other ag software FBS users are using a single platform to maintain crop and livestock production records and inventories in addition to accounting.  This integrated design not only eliminates redundancy but also provides the activity and inventory logic to "drive" accrual financial statements.
  • Not surprisingly, VIP and Corporate "power users" are more likely to take advantage of FBS's integrated design and modules
  • Finally we were pleasantly surprised at the percentage of users using the FBS platform for budgeting.  (It's much more automated and interactive than Excel alone.)

Next month we'll drill a little deeper and discover which FBS modules are most popular.

Thanks to all those who participated in this survey.  We take your "votes" and comments seriously.


Trade Show Calendar

Please join us for one or more of these national trade shows:

Date Show Location Booth#
March 2-4 Commodity Classic2016.jpg San Antonio, TX 2811
June 7-9 World Pork Expo.jpg Des Moines, IA V134

 


 


March Free Webinars
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March  6:  Ledger Accounts.
March 13:  Utilizing Centers and Divisions.
March 20:  Using Overhead Allocations.
March 27:  E.CLIPSE Managerial Accounting.
All webinars run between 1:00 pm and 2:00 pm CST.   

To register, e-mail support@fbssystems.com by 12:00 pm CDT on the day of the webinar.
 
NEW:  Catch up on the webinars you've missed by watching them on the Webinar page of our website.

 
Q&A of the Month:  When Your Balance Sheet Doesn't Balance
Sarah_Dixon
Sarah Dixon, FBS Sales and Support Coordinator

Q.  My balance sheet is out of balance.  How can I find out why? 

A.  This is a question we get quite a bit--especially at tax time.   I've answered this question in our newsletter before, but because it comes up so often I felt it was good to address it again.  

Try each step as it is listed, run your balance sheet after each step to see if it brings things back in balance; if it doesn't go to the next step. (If you're running with Date Cash Exchanged Option 3 note that the error message often identifies which entries are out of balance.)

 1. Run the Balance Sheet report with the box check to include inactive accounts.

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 2. Recreate Beginning Balances (under Utilities) and recalculate Retained Earnings for the current year (under Accounting Input/Edit).

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3. Recover Bad (Accounting) Data (under Utilities).

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4. Run the Accounting User Defined Report for the time period in question and check the box in the upper right hand corner to check for undefined entries.  Any entries that show up on this report will need to be corrected.  (Most likely they are out of balance because a ledger account, center or division has been deleted.)

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5. Run the Date Cash Exchanged Report to see if you can find a day or days that add up to the amount out of balance.

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6. Figure out where you start being out of balance.  Were you in balance on 12/31 of the previous year? Are you in balance on 1/1/ of the current year?  Start breaking the time frame down by 6 months, then 3 months, then weeks until you find the day you went out of balance then look at all the entries on that date, fixing any issue that you find.

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