Better business decisions

10 Apr, 2016 04:00 AM
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The Standard Chart of Accounts will also drive consistency in how the dairy industry reports and discusses farm business performance.
Accountants generally go through lists of farmer expenses from A-Z without knowing the detail ...
The Standard Chart of Accounts will also drive consistency in how the dairy industry reports and discusses farm business performance.

Rural accountants say dairyfarmers will benefit from Dairy Australia's new Standard Chart of Accounts with higher quality information for analysis leading to better-informed decisions made on-farm.

Developed by Dairy Australia in response to requests from farmers and service providers, the Standard Chart of Accounts will also drive consistency in how the dairy industry reports and discusses farm business performance.

Phillipsons Accounting Services Director, Colin Wright, said a standardised way of recording income and expenditure was of great value to the dairy industry. "It's a really positive move across the board," Mr Wright said. "It will make it easier for the accountant to provide information to farmers that will allow them to compare their business performance over time, versus other farms and assist in the budgeting process.

"Accountants generally go through lists of farmer expenses from A-Z without knowing the detail on key items. That makes it hard to interpret and compare year-on-year progress or performance versus other farms. The Standard Chart of Accounts should make this much clearer."

Mr Wright said the fact the Standard Chart of Accounts also linked with the farm business management tool DairyBase was another positive enabling comparative analysis and information sharing valuable to farmers.

Kyabram, Vic, accountant Pete George said the new Standard Chart of Accounts, which drew heavily on Murray Dairy's Financial Records Guide for Dairy Farmers, would also assist consultants analysing financial data for their clients.

A partner at M&S Group Accounting, Mr George works with 150 dairyfarmer clients and three Dairy Business Network (DBN) groups in northern Victoria. "The consultant-led DBN groups I am involved in will find this new Standard Chart of Accounts very useful because they will receive better and higher quality information to help them make decisions," Mr George said.

"They are interested in their financials and sharing information and seeing how others in the group have dealt with certain issues. This Standard Chart of Accounts will make it easier than it is currently to compare year on year, with themselves or with others in the group."

Mr George said farmers he dealt with had an increasing focus on farm business management due to volatility in milk price and water costs and the new Standard Chart of Accounts played an integral part in the process.

To download the Standard Chart of Accounts visit website or .

Dairy Australia

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