In the current environment every farmer is looking for ways to increase profit. Profit is driven by the cost of production and the easiest way to increase profit is to cut costs, says Brian Eccles, Managing Director of CRS Software Ltd, Masterton.

DairyNZ analysis of the last 3 seasons show that farm working costs between $2 and $3 per kg MS is achievable and that many of the highest profit farmers have costs at this level.

Profit drives your ability to spend funds where you wish. This may be more money spent on the family, but it could also be faster debt repayment. In essence profit means choices, says Eccles.

There is only one way to control costs and that is to plan for and monitor every dollar spent. That’s where farmers using the Cashmanager RURAL farm management software have a big advantage over their neighbours, he says. It’s exactly what the software is designed for. The whole process takes little time and can save thousands of dollars.

Another benefit is the reduced debt servicing cost that comes from demonstrating to your bank you offer less risk than your ‘spend as they have to’ neighbour. I’ve seen examples where a farmer with a modest mortgage has kept the financier well informed and this has enabled them to negotiate a reduced margin over the base interest rate, typically saving $15,000 per year.

Eccles says it’s not about cutting costs in one razor gang exercise. It’s about looking at every task and looking for better, cheaper ways. A simple method is to ask yourself: - Is this purchase, essential, important or nice? The answer can be quite surprising. “Because you have always done it this way”, is not a good answer!

The reason Cashmanager RURAL makes the task much easier is that the farm’s physical and financial information is organised in a way farmers need and understand. Standard accounting software lacks the farm management focus of Cashmanager RURAL. It’s this focus on farming benefits rather than accounting that makes Cashmanager RURAL a cost effective solution. Farm management consultants and bankers find it is ideal for them, says Brian. Doing the monthly bookkeeping is made very easy with electronic imports and auto-coding – one fingered typist can still be very efficient! However if that’s not for you, an option is to ask your accountant to keep the cashbook for you. With Banklink they can efficiently load your transactions straight into Cashmanager RURAL ONLINE. Being online means you can look at the farm management reports, update the budget and focus on cost cutting whenever you need to, from wherever you need to.

Cashmanager RURAL makes the task of learning how to get farm working costs under $3 a whole lot easier. When this is done there will be much more opportunity to have a profit to spend. Cashmanager RURAL is good at helping you do this wisely as well! , says Brian.

For more information phone CRS Software on 0800 888 707 and ask about Cashmanager RURAL and Cashmanager RURAL ONLINE.