Summary of Getting a step ahead using farm business analysis tools

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00:00:00 - 01:00:00

The video discusses how to get a step ahead in farm business by using farm business analysis tools. These tools help to identify liabilities, assets, and ratios, which can help a farmer to understand the strength of their business. The video also discusses the importance of communicating with a bank manager.

  • 00:00:00 This 1-hour webinar is designed to help farmers better understand their relationship with their bank managers and how to improve that relationship. The panel of experts includes a farmer, an accountant, and a bank manager.
  • 00:05:00 The speaker provides an overview of the different needs of farmers and bankers, and how these needs can be met through a partnership. He also discusses some of the risks involved in banking for farmers, and how these risks can be managed.
  • 00:10:00 The video discusses the importance of having figures prepared ahead of time to present to a bank, such as a profit and loss account, and the balance sheet. It discusses the importance of family members being involved in the business, and the importance of being prepared for a meeting.
  • 00:15:00 This video provides a guide on how to get a step ahead in business by using farm business analysis tools. These tools help to identify liabilities, assets, and ratios, which can help a farmer to understand the strength of their business. The video also discusses the importance of communicating with a bank manager.
  • 00:20:00 The video discusses how to get a step ahead with your bank manager by looking at your business' ratios of gearing (interest paid on debt, total debt, and profit before finance).
  • 00:25:00 The video discusses business analysis tools and how to use them to get a better understanding of a business' financial health. The main ratios discussed are the interest cover, liquidity ratio, and debtors. The video concludes by discussing how to prepare ammunition for a bank meeting.
  • 00:30:00 The video discusses the importance of tracking and analyzing farm business metrics in order to stay solvent and keep creditors paid. Four important ratios are discussed: liquidity ratio, current assets to liabilities, living expenses to current assets, and net worth. It is stressed that these figures should be reviewed regularly and that if they do not match bank parameters, the business may be in trouble.
  • 00:35:00 The presenter discusses how farm businesses can use accounts trends to better understand their business and how to prepare financial statements to show the bank manager. The presenter also discusses how external factors like crop prices and cattle prices can affect a farm's net worth and profitability.
  • 00:40:00 The presenter provides a brief overview of how farm business analysis tools can be used to help manage a business financially. The main points covered are that a business needs to generate profit to cover expenses such as rent, taxes, and bangle requirements, and that retired family members who still take money out of the business are liabilities. The presenter also discusses how to classify retired family members as liabilities and how the bank's view of the partnership may differ from the owner's view.
  • 00:45:00 The video discusses how a family business can be a difficult decision to make, and how the bank manager can be an asset or liability to the farm. It also discusses how, depending on the farmer's goals, it may not be necessary for him to be fully knowledgeable about the business.
  • 00:50:00 The video discusses the importance of succession planning in a farming business, and provides examples of when a bank manager might be asked to consider this. The speaker also discusses the importance of machinery replacement, and how this can be discussed with the bank manager.
  • 00:55:00 The video discusses how to get a step ahead in farm business analysis tools, including budgeting and cash flow management. It also mentions the cost of production model provided by Farm Bench.

01:00:00 - 01:05:00

Farm business analysis tools can be used to help farmers better understand their finances and make informed decisions about long-term business strategy. In this YouTube video, the presenter discusses the importance of these tools and how to use them.

  • 01:00:00 Farm business analysis tools can help farmers better understand their finances, and determine if they need to consult an adviser or hire a consultant.
  • 01:05:00 The presenter discusses the importance of farm business analysis tools and how they can be used to help guide decisions about long-term business strategy. They also provide a reminder that the recording of the webinar will be available on YouTube.

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