Financial Management for Farmers and Rural Managers [Paperback]

This book is a practical guide to all aspects of financial management in the smaller business. Although the prime focus is on owners and managers of farm businesses and farm diversifications, it is equally valuable for other types of rural business and organisation. It has proved popular on degree and diploma courses in Rural Resource Management, Countryside Management and Rural Estate Management, as well as those concerned with Agriculture. In this fourth edition, increased emphasis has been given to general accounting principles and techniques, especially those of management accounting, cost-volume-profit and break-even analysis and pricing. While maintaining and strengthening the farm business focus, the new edition also better accommodates the needs of non-agricultural enterprises, including service and manufacturing businesses and non-profit organisations such as Wildlife Trusts.Part 1 Basic Issues: Why bother?; In the beginning...; Building a framework; Cash Flow, Profit and Capital: Cash flow; Net Profit; Profit statements; Capital; Capital Statements; Depreciation; Interpretation of Financial Accounts: Adjusting for realism; Interpreting the profit and loss account; Interpreting the balance sheet; Management Accounts: Management versus financial accounts; Gross margin accounts; Full cost accounts; Allowing for cost behaviour; Pricing; Variations from the Norm: Farm management accounting; Partnerships and companies; Voluntary/non-profit organizations; Part 2: Basic Budgeting: A profit budget: Introduction; Compiling a profit budget; Home Farm profit budget; A Cash Flow Budget for the Whole Farm: Basic principles; Value Added Tax and overdraft interest; Cash flow budgets in practice; Reconciling cash flow and profit; A Budgeted Balance Sheet: Compiling the budget; A budgeted balance sheet for Home Farm; Budgeting for Incremental Change: Relevant costs and benefits; Partial budgets; Part 3 Financial History: Recording Cash Flow: Designing a cash recording systelƒ'