Follow this link to see AgWeb's post about how to bulletproof your balance sheet.
We were happy to hear this comment from Red Wing Software customer, Eugene Glock from Cedar Bell Farms in Rising City, Nebraska. Here is what Eugene has to say about CenterPoint!
Eugene Glock will tell you he is a lucky man, but what he might not tell you is that the financial information for his farms and entities is meticulously organized, and because of this he is keenly aware of which areas of his business produce his highest profits. While Gene is a humble man, he is the poster child for smart farm accounting, and for using CenterPoint Accounting for Agriculture to its fullest capacity. Maybe it’s not luck after all!
“CenterPoint is a great improvement on the software we used previously,” says Eugene, “It works faster and does some things automatically that our prior system did not. “ Eugene breaks everything down by crop: irrigated corn, dry land corn, etc. He also keeps each farm separate. This way he can always tell which farms and crops are most profitable. “One helpful thing about CenterPoint is that when we need to borrow money, we can easily provide accurate cash flows to our bank, which they really appreciate. We can also see live, up to the minute financial information.”
“I have really appreciated the recurring transaction features in CenterPoint. We split out our expenses by different enterprises, by percentage. (For example, a percentage goes to the office, a percentage to the farm, etc.) Our prior system had recurring invoice function, but it didn’t allow us to split it up by percentage. It has been a huge time saver for us.”
“No matter how perfect a software program is, there will always be some problems or issues along the way. The people at Red Wing Software are really great. I don’t know where they find these people, but they are just so patient and helpful. I think each one of them has helped me at some point. If you want a software product that will provide you service after you purchase it, you want Red Wing Software and CenterPoint. For the return on investment, CenterPoint is better than most investments!”
If you want to improve your farm's profitability in 2012, reading this blog post is a step in the right direction!
Using ratio analysis can make a big difference for your farm. Incorporating a ratio module within your accounting system, can help you pinpoint areas of strength, and weakness, to help you increase profits and reverse negative trends. Here's how.
Track Financial Condition
Ratio analysis allows you to see the data behind the indicators, and trend information can be shown in meaningful ways, such as a graph or chart for any number of years available. This helps you see your financial condition in a way that is meaningful to you, so you can start making improvements where necessary, or have the confidence to continue with your efforts as they are.
Compare Your Farm to Your Competition
Looking at the trends of your competitors can be of great value to your farm. Ratio calculations allow you to view industry standards and illustrate financial trends, so you understand where your farm stands against your competition. The success, progress, or shortfalls of your farm, can be understood and addressed, so proper action can be taken. By knowing where you stand against your competitors, you know where to improve, giving you a competitive advantage.
Compare Various Time Frames
Understanding your current situation is crucial. And yet it may be even more important to compare data from two different time frames. Perhaps the past year wasn′t profitable and you want to turn it around. Or maybe you want to understand why you were struggling so much last month. Use ratio analysis as a high-level tool to see trends over longer periods of time, so you can achieve long-term financial growth.
By using Ratio analysis, you can access information and trends that you may not have noticed, so you can make changes accordingly, which will benefit your farm!