As the year unfolds it is important for farmers to assess their financial health to ensure their business is on track for sustained success.

“Assessing your financial health early in the calendar year provides time to make adjustments or improvements before the end of the financial year. Tax offsets, vehicle sales, productivity enhancements and other investment or savings’ initiatives can be executed” says Craig Hough, CEO of RFCS NSW.

RFCS NSW encourages farmers to conduct a comprehensive review of their finances, comparing actual performance against the budget they’ve set. This analysis identifies strengths and weaknesses in the financial position which provides the foundation for prioritising corrective action.

“Our Rural Financial Counsellors work closely with farmers to complete and analyse their financial documents. They are looking for numbers out of the ordinary and trends across line items. Some of these may include higher expenditure than what was budgeted, reduction in sales, unusually high or low cash flow or anything else that doesn’t look right. Most importantly the check will determine viability of the business” he says.

A viable farm business is one that is profitable enough for the business owner to have a liveable income, is satisfying commitments with creditors and has sufficient cash resources to continue in times of adversity.

“Financial reviews can often be put in the ‘too hard’ or ‘I’m too busy’ basket and not get done or get done poorly. If this is the case seek professional help. The work is essential for every successful business” he says.

RFCS NSW provides free, confidential, and independent financial counselling services for farmers across the Central and Southern regions of New South Wales. For more information or to speak with your local Rural Financial Counsellor, please contact RFCS NSW on 1800 319 458.

ENDS

RFCS NSW Media Enquiries:Stakeholder and Communications Manager – Kate Anderson

Email: kate.anderson@rfcsnsw.org.au Mobile: 0487 731 788