Agribusiness

How We Help Agribusinesses

Our accounting and advisory services include:

• Financial statements and income tax returns
• Bookkeeping and account reconciliations
• GST and BAS preparation
• Payroll and superannuation compliance
• Seasonal cash flow budgeting and forecasting
• Enterprise and activity profitability reporting
• Livestock and produce inventory reviews
• Machinery and equipment depreciation reviews
• Equipment finance and loan reconciliations
• Management reporting
• Business structuring and tax planning
• Finance and lender documentation

Seasonal Cash Flow Management

Agribusiness income and expenses may occur at different times throughout the year. Seed, feed, fertiliser, fuel, labour and maintenance costs may need to be paid well before income is received from harvests or livestock sales.

We prepare cash flow budgets and forecasts to help business owners anticipate upcoming commitments, plan for periods of lower income and assess working capital requirements.

Forecasts may also support discussions with banks, equipment finance providers and other lenders.

Enterprise and Activity Profitability

A farming or agricultural operation may include several crops, livestock groups or other income-producing activities.

Where suitable records are available, we prepare reports that help owners understand revenue, direct costs and profitability by enterprise or activity. This can support decisions about production levels, pricing, resource allocation and future investment.

Livestock and Produce Inventory

Livestock, harvested produce and other agricultural inventory can affect financial reporting and taxable income.

We assist with reviewing inventory records and year-end quantities to support the preparation of financial statements and tax returns. Accurate records of purchases, births, deaths, sales and quantities held are important for this process.

The appropriate accounting and tax treatment depends on the nature of the operation and the relevant tax rules.

Machinery, Vehicles and Equipment

Agribusinesses often require substantial investment in machinery, vehicles, irrigation systems and other equipment.

We review asset purchases to determine the appropriate accounting and tax treatment, including depreciation and any available deductions. We can also assist with recording finance arrangements, reconciling loan balances and assessing the cash flow effect of proposed purchases.

A tax deduction should be considered alongside the commercial need, finance costs and ongoing operating expenses associated with the asset.

Operating Costs and Management Reporting

Changing input costs can significantly affect agricultural profitability.

We help classify and review expenses relating to:

• Seed, feed and fertiliser
• Fuel and vehicle costs
• Repairs and maintenance
• Contractors and seasonal labour
• Freight and transport
• Insurance
• Utilities and irrigation
• Machinery finance
• Other operating expenses

Regular management reporting can help owners compare results against budgets and identify significant changes requiring attention.

Employees and Contractors

Agribusinesses may engage permanent employees, seasonal workers and contractors.

We assist with payroll processing, Single Touch Payroll reporting, superannuation reconciliations and payment records. Worker classification and employment conditions may require separate legal or employment advice.

GST and Tax Compliance

We assist agribusinesses with ongoing obligations, including:

• Income tax returns
• Business Activity Statements
• GST reporting
• Payroll tax, where applicable
• Superannuation
• Fringe Benefits Tax
• Year-end tax reconciliations
• ATO correspondence

We can also review the accounting and tax treatment of asset purchases, finance arrangements, government assistance and other relevant transactions.

Business Structuring and Succession Planning

Agribusiness structures may involve family members, partnerships, trusts and companies. Ownership and succession decisions can have significant accounting, tax, legal and financial consequences.

We provide accounting and tax advice for businesses reviewing an existing structure, introducing family members, changing ownership arrangements or preparing for succession.

These matters should be considered well in advance and usually require coordinated legal, financial and estate-planning advice.

Tax Planning

Agricultural income and expenditure can vary considerably between financial years.

We conduct tax planning reviews before year-end to help clients understand their estimated tax position, identify relevant obligations and consider available planning opportunities.

The availability and suitability of any tax concession or strategy depends on the business and its individual circumstances.

Who We Work With

We support a range of agricultural and regional businesses, including:

• Broadacre and grain producers
• Livestock and mixed farming operations
• Horticultural businesses
• Vineyards and wineries
• Agricultural contractors
• Machinery and equipment service providers
• Produce wholesalers
• Family farming businesses
• Other agricultural service providers

Talk to Our Agribusiness Accounting Team

Whether you need assistance with tax compliance, bookkeeping, seasonal cash flow, equipment purchases, management reporting or succession planning, our team can provide support relevant to your agribusiness.

Contact J&N Accountants to discuss your accounting needs and the financial priorities of your operation.