A cash flow statement is a tool that will allow you to know when to expect money and allow you to know beforehand when you will lack it.
As a farmer preparing a cash flow statement is not a difficult task because you know when your products will be ready to harvest ready for sale and the cost you anticipate to incur are fairly predictable.
A typical running business organization has these two types of costs
TIPS TO ENSURE A CONSISTENT CASHFLOW
Plan your expenditure, do not make unplanned purchases.
Be keen to follow up money owed to you to avoid having a short of cash at hand. Remember cash is king
Have a pricing plan in hand to ensure that you do not overstay with stock waiting for the right price. With perishable crops this could be costly.
Download your free template for a cash flow statement.