Don’t delay your budgets!
Spring is slowly creeping up on us and many farmers are starting to think about what the next financial year will bring.
Budgeting is a key tool for planning, particularly for farmers focusing on future capital projects, potential grant schemes and gross profit margins.
For arable farmers, budgeting can be time-consuming as three harvest years are analysed to produce one budget to show a snapshot at various stages over the financial year. Managing your cash flow is vital to any business and allows you to decide where to fit in any potential projects.
It is difficult to accurately project sales prices and variable costs. However, forward planning can help mitigate any nasty surprises. It is important to plan for the future, especially as we are hitting a period of uncertainty as to what the agricultural transition period will look like.
Always be aware of new regulations such as the changes to capital gains tax when selling land or property. From April 6 capital gains tax will be payable within 30 days of sale completion, differing from the current rules which allow you to pay on January 31 following the end of the tax year.
Laura McIver Driscoll is Balfours' deputy head of accounts
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