How to do a cashflow Statement Sucessful Farming Made Possible
cashflow
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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

  • Fixed costs- labor, electricity, water and other utilities
  • Variable costs- raw materials, feed, services like veterinary etc.

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.

 

 

Mark Koech
Mark Koech
A farmer with skills in entrepreneurship , marketing, leadership, web development and I have a passion for new age media and farming.

2 Comments

  1. samuel J mwakalinga says:

    thank you! for giving motivation of upcoming young farmers like me

  2. Alice says:

    Very informative.

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