Most farming businesses have a banking relationship. Some may have a closer connection than others, depending on the needs of the operation and the proactivity of the farmer and bank manager, or agri-broker.

But as farming businesses become more complex and the level of professionalism increases, I believe the initial onus is on the business owner to put their house in order in relation to providing timely, accurate financial information.

A fully functioning agribusiness needs to have the ability to report in many areas, not only financial metrics. Banks are interested in the overall performance of the farming operation, but their main focus is on financial performance.

There is some low-hanging fruit that can be addressed – one of these is having accountant-prepared financials completed within the first six months of the new financial year.

This means having a level of organisation in relation to bookkeeping and reconciliation of accounts in-house, and, as importantly, it requires communication with your accountant to ensure they have the capacity to undertake the work in a timely manner.

Most accountants will welcome work early in the new financial year, as it evens out their workflow. Having agreed when information is to be provided, it is vital the promises are kept.

Along with the core numbers, having an understanding of, and having the ability to explain the assumptions is another crucial step. Banks will rely heavily on the base assumptions behind the numbers.

The reality is some people love numbers, while others loathe them.

The good news is that if you are someone who drifts off into a stupor at the mere thought of reconciling bank accounts or compiling budgets, there are people at hand who thrive in such environments.

The support you need may be in-house, or it can be sought from external sources. If externally is the preference, there are multiple places this assistance can come from.

If an agri-broker is in the mix, they can assist with sorting the information required, as they understand exactly what is needed and in what format. An external bookkeeper can be engaged. Or there are a few specialist firms that offer this specific service to agribusinesses.

The old maxim “garbage in garbage out” applies to gathering relevant financial and production information. Time spent initially planning how the system is going to work will be money and time well spent.

Agribusinesses who make the effort in getting their ducks in a row will be a position to make better decisions in all areas of their operation. Also, if the business has to course correct, it will have timely, accurate information to use as a basis for decision-making.

Having certainty around the performance of the operation is crucial and will be quite rewarding. It will certainly aid with peace of mind, knowing how the business is tracking financially.