The Performance Summary report (EFS) is a great tool for measuring the performance and profitability of your farm business.
It does this using actual, budget or revised (a combination of actual plus budget) figures.
Pongaroa sheep and beef farmer and farm consultant, Rachel Joblin, says the EFS report is her ‘go-to’ report.
“It’s the first thing I look at. I like the EFS report because it gives a big picture view of what’s going on. The EFS and the stock reconciliation are key for us, and for clients,” she says.
“I look at the big picture and then work backwards to see how we can improve. I look at the EFS and then what’s affecting or contributing to the EFS.”
It is a financial year-based report, which means it includes your entire financial year i.e. June – May, plus balance date payable and receivable items (items that you pay or receive income for in the current year that relates to the previous year).
The EFS report helps you to analyse the physical and cash performance of your business by identifying Key Performance Indicators (KPIs) that are specific to you.
Non-cash adjustments such as livestock adjustments, wages of management and depreciation can also be included.
Useful KPIs to help benchmark your business could include gross farm revenue, economic farm surplus, debt servicing, and farm expenses.
While the EFS report default view is to display gross farm revenue minus farm expenditure and non-cash adjustments, you can expand the report to include interest and rent, giving you your operating surplus.
Or go even further into your business and include debt servicing and tax.
How is the EFS report created?
Most of the information is pulled directly from your actual or budget data. Under Report Options you can also:
- Customise the report to view each enterprise within your business or change the Analyse By fields to suit your business.
- Add additional information, like adjustments for stock.
- For an accurate view of your business, don’t forget wages of management, depreciation and any capital expenses that haven’t been recorded in your database.
The EFS requires key information in order to provide accurate reporting. So it helps to make sure that the data in your database is up to date.