Many farmers are facing reduced levels of income due to the drought, putting pressure on cashflow and making them consider every aspect of their enterprise.
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There are opportunities in years of lower income including qualifying for the small business capital gain tax concessions.
An information session by WDF Professional Accounting & Business Advice on April 9 will provide a chance for primary producers to hear details and gain insights to assist them improve their businesses.
Now is an ideal time to look at long-term and succession planning, as well as tax effective operating structures.
There are numerous planning strategies that can be implemented to manage variable income levels.
Primary producers also need to understand how lenders assess their risk margin and how this impacts what their lender charges.
Being aware of the steps that they can implement to improve their customer margin can lead to a significant improvement in cashflow.
When reviewing cashflow it is important that businesses prepare, understand and monitor their budget as well as know how different seasonal influences can have an impact.
An understanding of the return on the capital of invested into a farming enterprise is another critical factor.
