From time immemorial, agriculture was believed to be the production of staple food required for daily survival. However, with the invention of mechanisation, it has become increasingly clear that farming is an enterprise that can be profitable, interesting and will feed nations. We have seen the advancement of farmers venturing in innovative farming like hydroponics, pisciculture, apiculture, fungiculture, rotary dairy, to name a few.
We have witnessed livelihoods being transformed, national budgets being sustained, international trade succeeding, and creation of employment opportunities from agricultural activities. The benefits are amazing, families flourish and the nation becomes food secure.
However, as in any enterprise, there are risks to be managed. The advancement in technology, increased regulation, and complex transactions calls for the attention of an accountant. Accountants not only assist the farmer in identifying the risks, but in managing the risks and complex business cycles. This ultimately has a dramatic effect on the bottom line.
There is no clear-cut formula to accounting for all the factors affecting production in farming, but with a team of seasoned and experienced accountants financial success is guaranteed.
How Addmath partners with farmers:
Access to Land
Land is vital for agriculture activities. However, it tends to lock up the much needed working capital. At Addmath we can device various land financing models that releases the cash that is needed to fund business operations, including Public Private Partnerships (PPPs), leasing, rent to buy, among other options.
Advise on government subsidy schemes:
The government of Botswana has put in place a number of facilities to assist farmers to thrive. At Addmath we will advise farmers on the subsidies they qualify for and how to access them.
Compliance issues:
Every business requires a well-kept record of income and expenditure and need to comply with the statutory requirements. At Addmath we have a team of qualified professionals who will help with compliance with various regulators and maintain accurate and up to date records. Our exposure to regional markets has an added advantage when handling imports and exports.
Financial Management:
Farming is a business, and like any other business, it involves financial transactions, income, and expenses. Accountants help farmers manage their finances effectively, ensuring that they understand their cash flows, profits, and losses.
Budgeting and Planning:
Accountants assist farmers in creating budgets and financial forecasts. This is crucial for planning future investments, expansion, or diversification of the farm operation.
Financial Reporting:
Farmers may need to present financial statements and reports to lenders, investors, or government agencies. Accountants help ensure that these reports are accurate, reliable, and compliant with relevant financial reporting standards.
Risk Management:
Farming is subject to various risks such as weather-related disasters, market fluctuations, and regulatory changes. Accountants can help farmers assess and manage these risks by providing financial analysis and recommending strategies to mitigate potential losses.
Specialized Knowledge:
Farm accounting often involves specialized knowledge of agricultural subsidies, grants, crop insurance, and other industry-specific financial matters. Accountants with experience in agricultural accounting can provide valuable insights and advice tailored to the unique needs of farmers.
In conclusion, farmers need accountants to help them manage their finances effectively, comply with various statutory regulations for example taxes, plan for the future, and navigate the complexities of agricultural business operations.
Are you a farmer? We are here to help. Contact us on: