The current issue of Progressive Dairyman has an article by Scott Plew, CPA about the importance of good financial records for dairy farmers:
Are you being progressive enough with your finances to survive a tough market?
Mr. Plew works with Idaho dairy farmers, but his comments apply to Northeast dairy farmers, too. He writes that "critical changes in business practices" are needed, and he draws on lessons from other industries. He recommends preparing a monthly budget, comparing actual results to budgeted results, analyzing variances, and making changes "mid-stream if appropriate for the business to meet its desired result – profitability."
Mr. Plew's comments are consistent with, and build on, the letter that I sent to Yankee members about financial records last December.
