Hiring a farm accountant is crucial in running a profitable farming operation. As a farmer, partnering with an experienced accountant can help you navigate the unique financial and accounting-related challenges that come with this industry. With so many questions to ask a farm accountant, it can take time to figure out where to start. Here are four questions to ask your farm accountant to ensure your financial management is in good hands.

1. Are you knowledgeable about the farming industry?

When hiring an accountant for your farming operations, the accountant’s industry knowledge should be a top consideration. You want an accountant with deep farming industry knowledge who understands your business’s unique financial and accounting needs. An accountant who understands the farming industry can help you identify opportunities such as tax credits and avoid financial pitfalls.

2. What business structure should I choose for my farming operation?

Choosing the right business structure for your farming operation is essential because it can impact how you run your business and the overall tax landscape. Your farm accountant can help you select the best business structure for your farm based on your goals, business plan, and vision. You have many options, including sole proprietorship, limited liability company (LLC), partnership, corporation, and cooperative; discussing this with your accountant is crucial.

3. Can you help me monitor and regulate my cash flow?

Effective cash flow management and planning are vital for a successful farming operation. An accountant can help you monitor and regulate your cash flow by assessing your finances, establishing a budget, projecting cash inflows and outflows, and providing advice to help you make the right decisions about your expenses. With your accountant’s help, you can identify opportunities to optimize your cash flow and avoid cash flow crises.

4. Can you help me decide whether to sell or trade in farming equipment?

Managing and disposing of farming equipment can be challenging, and making the right decisions to minimize financial losses is essential. A farm accountant can help you determine if selling or trading equipment is in your best financial interests. The accountant can also help you maximize tax write-offs of equipment by applying strategies such as Section 179 or Bonus Depreciation.

Choosing the Best Farm Accountant

Partnering with an experienced farm accountant can help you make more informed financial decisions and maximize your farm’s profitability. Don’t be afraid to ask questions. In addition to the four questions listed above, there are many other topics to cover, such as succession planning, tax regulations, and cybersecurity.

With over 40 years of experience, Genske Mulder is the leading firm for farm accountants, offering unparalleled expertise and industry-specific knowledge for dairies and agribusinesses. Contact us today to learn how we can help you Grow and Thrive.