Why your agribusiness might need this service

By Emily Zuver, Senior Assistant Accountant, Holbrook & Manter

Now that it’s between planting and growing season, you may have some time to catch up on accounting items that were put to the side. What if you had someone who could consistently take care of these items, and you could give your attention to other tasks that are more of interest to you?

Outsourcing your agribusiness’ accounting tasks might be the best decision you ever make for your organization. You will save time and money with a team of experienced accountants at your disposal, helping you stay compliant as your business grows.

Here are some agribusiness accounting service needs that might be beneficial:

1. Estate/retirement/transition planning: Farmers approach this topic differently from other retirees. Retirement planning for farmers can look very different from others who have worked only in an employee setting. Careful planning is needed, and the farmer should look at overall asset management and retirement readiness as part of the process.

2. Accounting and software support are especially important for those with larger operations. There are full-service accounting teams that can offer great assistance in these areas. You can hire as many or as few of these services as needed. Many times, these teams can provide an ideal solution if you need a bookkeeper without the full-time expense. Among other things, specialists can enter your income and expense data, perform bank reconciliations, handle bill payments and collections, manage payroll, develop custom management and tax reports, and update your software as needed.

3. Year-end tax planning: The end of the year and the start of a new one represent a time when farmers begin preparing for the imminent tax season. Getting a head start on tax planning for your farm can result in more deductions that equal less taxable income and potentially more savings in the coming year. Year-end planning encompasses a detailed plan and consideration of intended tax liability outcomes for the current year and subsequent years. Planning topics listed below should be reviewed as part of the overall plan:

i. Purchase of machinery and equipment in conjunction with the depreciation section 179 expense and bonus depreciation considerations

ii. Like-kind exchange considerations

iii. Income averaging

iv. Prepaying farm expenses

v. Crop insurance proceeds and potential deferral of income

vi. Retirement planning and funding (SEP IRAs, 401 (k), SIMPLE Plans)

Accounting services can come in different shapes and sizes. Finding the service that is right for you could be challenging. Contacting your accountant to identify your needs is your first step. You already work with them on a yearly basis, so why not ask them what they think could benefit your business? As always, if you have any questions, please reach out, as we would be happy to help.