planning
Supply Planning
Hello!
I recently posted a blog in reference to tax planning at the end of the calendar year. Moving with that same theme, I wanted to discuss supply planning. During the winter months (and in our industry the “down time”), I like to take inventory of my supplies and plan for the next year. Typically on our beef farm, we start shopping now for items such as baling twine, hay wrap, etc. One of our local dealers lets us buy these types of supplies (at a great price) and lock into a price guarantee. They also like to claim the sale for the current year and let us “buy now, pay later.” This allows us to manage our cash flow, lock in at a great price (save money too!) and plan for the next year’s crops. I don’t know how many times I have heard farmers complain about running out of items in the hay field which often leads to increase cost and lost time. My advice: shop around. Ask your local dealers, grain stores, equipment stores for their pricing and terms of the sale. Most times it is better to buy in bulk to get a greater discount. Ask a trusted local farmer if they want to go in on a large order with you to increase savings for you both and maximize your economies of scale. Don’t be afraid to ask!
Tax Planning for Businesses
Good Afternoon!
I hope wherever you are you are recuperating well from Thanksgiving. As this year starts to wind down, I thought I would share my thoughts about year-end planning. As a tax accountant, I always recommend doing year-end planning. First, it gives you the ability to calculate your tax liability and gives you the opportunity to reflect on this past business year. Second, as with any planning, it allows for the opportunity to implement tax saving strategies to (hopefully) reduce your tax liability. There is very little that can be done after the year-end close, and every opportunity should be done prior. Consulting with your tax advisor, there are several tax strategies to potentially take advantage of. For instance, looking at your cash versus accrual method of accounting and how it relates to your business. Also, are there any assets you can purchase prior to 12/31 to take advantage of depreciation? How about taking bonuses for your shareholders (if you have them and depending on your individual tax rate)? No matter what your business, planning now can save you a headache and lots of wasted money in the future!
*Suggestions and not tax advice. Please consult your accountant or tax advisor as it relates to you.
The High Heeled Farmer 