This time of the year is great to revise your budget. You have a lot more information about the season, than you did 3 months ago. Some of the information you might have on hand now is:
- weaning tallies – number of lambs/calves available for sale
- weaning weights – better prediction of what the sale weight of your animals might be
- schedule indication – you can access more up-to-date sale price information about the selling season. Talk to your stock agent, adviser, meat company or B+LNZ
- feed supply – how has the spring gone? Are we set up well for the start of summer from a feed point of view?
- combining animal weights, feed supply and market information, to plan the sale/purchase of stock. You may change your sale and/or purchase pattern in your financial budget. This will impact your cashflow.
The benefits of updating your budget now are:
- you can manage your cashflow relative to overdraft limits. This allows you to have proactive discussions with your banker, if you need to.
- depending on your overdraft system, you can better plan floating or fixing money over the short-term.
- you can have more informed discussions on the affordability of any discretionary expenditure items you had planned for the remaining of the financial year. Are you still going to meet your financial goals for the end of the year? Or do compromises need to be made? It’s a great time to have this discussion, rather than wait till the end of the financial year, and be surprised by the result.
If you need help with you farm financial management tool (ie. Cashmanager Rural), get in touch with your provider or your adviser/accountant. They should be able to provide support for you through this process.
This article on when to revise your budget was written by UYFB Facilitator, Kate Wyeth, and appeared in the Agri-Women’s Development Trust newsletter. This article is re-produced courtesy of AWDT.