Three ways farm management software optimizes profitability
No matter the commodity you produce, there is never a shortage of activity on the farm. Simultaneously managing tasks and employees, making day-to-day decisions and preparing for what’s next can become chaotic and overwhelming for any farm business owner.
Enter business management software. More and more farmers are using it to help them stay on top of their game and ultimately, it’s boosting their bottom lines.
What it is
Start by entering data into Microsoft Excel . . . or transitioning from spreadsheets to accounting software such as FCC AgExpert Accounting.
In agriculture, software can be used to manage crop plans, monitor crop progress and track field activities. Or you could use it to track livestock inventory, manage feeding and grazing plans, and record sales. Financial management software automates record keeping, tax returns and payroll, generates valuable reports and supports activities like budgeting and benchmarking.
Although technology is always advancing, using management software is not about buying the newest phone and the latest apps. In fact, it can start by entering data into Microsoft Excel instead of writing in the ledger book or transitioning from spreadsheets to accounting software such as FCC AgExpert Accounting.
Almost all management software can be used at a desktop computer or on smartphones and tablets. The functionality provided via browser-based software or a mobile app is an enormous benefit to farm managers, allowing them to record data while in the barn or access financials without a trip to the office. No more transferring info from notebook to computer – mobile devices mean software tools are available when and where you want them.
Why it matters
If you’re asking yourself why using farm management software makes sense, consider these three benefits:
Many management programs provide a holistic view of all farm activities. It’s a one-stop shop to easily track day-to-day tasks and record financial transactions, and there is no chance of digitally recorded notes dropping out of your pocket.
Having the opportunity to easily review previous activities and business decisions will help you plan every season more efficiently.
Access to information is vital to a successful farm business, but simply having more information isn’t always helpful. Software improves the quality of your information by lowering human error and flagging potential mistakes in data entry.
It also helps you gain the type of valuable insights that are tough to see in paper form, like generating forecasts for next season or identifying your least profitable venture.
Quick access to accurate, current figures as well as year-over-year data allows you to make more informed production and operational decisions and provide accurate numbers for transition planning.
At the end of the day, management software makes daily and seasonal routines faster and simpler. Working smarter allows more time to analyze and improve the efficiency and profitability of your operation and be alert to new opportunities you may have otherwise missed.
From an AgriSuccess article by Rebecca Hannam.