Beyond the P&L: Uncovering True Profitability for Agriculture Clients
Host: Dr. Christine Gervais
Speaker: Mitchell Parks
Sponsored by: Figured
A standard profit and loss statement is built for filing taxes, not for making decisions. On a farm running multiple enterprises — corn, soybeans, cattle, and more — that gap matters more than most accountants realize. Most farmers can't say which part of their operation is actually making money. Most of their accountants can't either, yet.
This session goes deep on enterprise-level profitability: what it is, why a blended P&L masks it, and what additional data — beyond what comes out of standard accounting software — is needed to see it clearly. We'll look closely at one of the most overlooked factors in farm profitability: on-farm movement, where crops or feed never leave the operation and never show up as sales revenue, distorting the real picture of which enterprise is carrying the business and which one is dragging it down.
You'll see how a small number of additional data points — yield, acreage, livestock movement — can unlock enterprise-level gross margin reporting without requiring a farmer to overhaul their record-keeping. We'll also cover how reporting that's accurate and current does double duty: it drives better advisory conversations, and it's the same reporting a lender wants to see when a client needs financing, expansion capital, or a loan renewal.
This session builds on Session 1 but doesn't require it — if you're already having the advisory conversation with farm clients, or stepping into one for the first time, this session gives you the next layer: knowing what's actually driving (or hurting) the bottom line, enterprise by enterprise.
Learning Objectives
After this session, attendees should be able to:
- Understand why a standard P&L from QuickBooks masks enterprise-level profitability on a farm
- Identify the additional data points (beyond accounting data) that reveal true farm profitability
- Learn how on-farm movement — where crops or feed stay within the operation — changes the numbers
- See how enterprise trackers in Figured work and how little data is actually required
- Know how to use gross margin conversations as an advisory entry point or upsell
Cost: Free
CPE Credits: 1
Subject Area: Specialized Knowledge
Course Level: Basic
Instructional Method: Group Internet Based
Prerequisites: None
Advanced Preparation: None
Who Should Attend: CPA, Bookkeeper, Accountant, Enrolled Agents, Tax Preparer