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AgCareers Weekly USA Newsletter - Balance Sheets & Barns: Your Path to a Career in Agriculture

AgCareers Weekly USA Newsletter - Balance Sheets & Barns: Your Path to a Career in Agriculture

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Balance Sheets & Barns: Your Path to a Career in Agriculture


By: Alex Iconomopoulos, AgCareers


At first glance, farming might seem like a hands-on, dirt-under-the-fingernails kind of job — far removed from spreadsheets and financial statements. But in reality, agriculture is a business, and like any business, it thrives on sound financial management. 


If you're an accountant exploring a career in agriculture, your skills are not only relevant — they're in demand. 


A farm has lots of costs associated with it. Evaluating the financial health of your business requires an understanding of the key financial statements: the balance sheet, income statement, and statement of cash flows.  


The balance sheet displays assets, liabilities, and owners' equity, which is what the company owns and what the company owes.  


The income statement displays revenue, expenses, cost of goods sold, and net income, which shows profitability. 


The statement of cash flows displays operating, investing, and financing activities. Showing how money flows in and out of the business.  


These tools help farmers make informed decisions, such as whether to invest in new equipment or expand operations. 


Imagine a farm considering a new tractor that could boost productivity by 20%. Your accounting skills would help: 


Use the income statement to project increased revenue 


Review the balance sheet to assess current debt and available capital 


Analyze the cash flow statement to ensure the farm can handle monthly payments 


Your financial insight could be the difference between a smart investment and a costly mistake. 

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De Lacy Executive Recruitment North America

De Lacy Executive Recruitment North America offers professional recruitment services for employers and candidates in agriculture and food. The De Lacy team of professional consultants is committed to exceeding the expectations of those we serve


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Stine Seed Company

Stine Seed Company was built on a foundation of science, independence and choice — an unparalleled combination when it comes to what you want in a seed company.


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AgLink

AgLink Canada helps Canadian farmers grow clean, quality, sustainable food and fibre for world markets.


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Wilbur-Ellis

Wilbur-Ellis is one of the largest family-owned companies in the world. Since their beginning, almost a century ago, Wilbur-Ellis has prided itself on looking forward. 


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Bayer

Bayer is a global enterprise with core competencies in the life science fields of health care and agriculture. Our products and services are designed to benefit people and improve their quality of life.


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