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Realistically, many agribusinesses only look at their profit once a year when they visit their accountant’s office. That is such a huge mistake, especially as there are a number of systems available (such as Xero, Cash Manager Rural, Banklink and MYOB Accounts Live) which allow you to quickly as...

Your break-even point is the number/value at which your income covers the cost of running the business. It is one of the key measures which people often overlook, but a good business owner knows their break-even point. This figure tells you what income you need to make in order to achieve the pr...

Every business owner wants to make a profit. Whether it is to invest money back into the business to fund growth, or to allow you to take a holiday. It is important to remember that profit is over and above the wages or management fees that you have already included in the break-even analysis. Yo...

Identifying your agri-business’s key performance indicators (KPIs) is not as hard as you may think. Every business has a number of indicators which are key to business operations. Large organisations use KPI reporting to the Board to effectively manage each of their divisions rather than numerous...

There are several categories for agribusiness KPIs: ● Production; ● Farm working expenditure; ● Finance cost; and ● Profit. To be of any use, the selected KPIs must match the goals of your business or represent some part of your business which needs to be improved. The KPIs must also be measur...

It is important to benchmark performance year to year, or period to period. At CMK, we maintain KPI sheets for our clients and meet with them regularly to discuss how performance compares to previous years. This is an important process for all parties. An independent third party view of your busi...

Are you aware that as a farmer, there are many concessions available to you to minimise yearly tax payments? One such concession is the Income Equalisation Deposit (IED) Scheme. Basically speaking, the IED is a way to ‘smooth’ out your income from year to year. Instead of having spikes and crashe...

To lower your taxes for a certain year, you need to defer extra income by using the IED Scheme. Income deposited to the scheme is treated as a tax deduction for that particular year, but what happens to your deposit? No need to worry! Your money is kept safe as part of the IED Scheme. It is just ...

There are three types of Income Equalisation Deposit Schemes. Although your accountant can advise you on which of the three schemes would be of benefit to you and how to utilise them, a basic understanding of the schemes gives you better control over your business decisions. #1 Ordinary Incom...

There are three types of Income Equalisation Deposit Schemes. Although your accountant can advise you on which of the three schemes would be of benefit to you and how to utilise them, a basic understanding of the schemes gives you better control over your business decisions. #2 Forestry Incom...

There are three types of Income Equalisation Deposit Schemes. Although your accountant can advise you on which of the three schemes would be of benefit to you and how to utilise them, a basic understanding of the schemes gives you better control over your business decisions. #3 Adverse Event ...

This section is not about pushing your income from year to year to avoid paying high taxes. It is about protecting your business and understanding your finances. Making decisions is tough enough, but making uninformed decisions is tougher and could be dangerous for your business. No matter whet...

Do you have a goal in place for what you want from your business, and your life? Ask yourself how many hours a week do you wish to be at the coal face and are you enjoying your current role within your business? Are you happy working for someone else or do you want to work for yourself? Do you wa...