We were happy to hear this comment from Red Wing Software customer, Eugene Glock from Cedar Bell Farms in Rising City, Nebraska. Here is what Eugene has to say about CenterPoint!

Eugene Glock will tell you he is a lucky man, but what he might not tell you is that the financial information for his farms and entities is meticulously organized, and because of this he is keenly aware of which areas of his business produce his highest profits. While Gene is a humble man, he is the poster child for smart farm accounting, and for using CenterPoint Accounting for Agriculture to its fullest capacity. Maybe it’s not luck after all!

“CenterPoint is a great improvement on the software we used previously,” says Eugene, “It works faster and does some things automatically that our prior system did not. “ Eugene breaks everything down by crop: irrigated corn, dry land corn, etc. He also keeps each farm separate. This way he can always tell which farms and crops are most profitable. “One helpful thing about CenterPoint is that when we need to borrow money, we can easily provide accurate cash flows to our bank, which they really appreciate. We can also see live, up to the minute financial information.”

“I have really appreciated the recurring transaction features in CenterPoint. We split out our expenses by different enterprises, by percentage. (For example, a percentage goes to the office, a percentage to the farm, etc.) Our prior system had recurring invoice function, but it didn’t allow us to split it up by percentage. It has been a huge time saver for us.”

“No matter how perfect a software program is, there will always be some problems or issues along the way. The people at Red Wing Software are really great. I don’t know where they find these people, but they are just so patient and helpful. I think each one of them has helped me at some point. If you want a software product that will provide you service after you purchase it, you want Red Wing Software and CenterPoint. For the return on investment, CenterPoint is better than most investments!”

If you want to improve your farm's profitability in 2012, reading this blog post is a step in the right direction!

http://www.agweb.com/blog/ask_a_margins_expert/determine_the_profit_centers_on_your_farm/

Using ratio analysis can make a big difference for your farm. Incorporating a ratio module within your accounting system, can help you pinpoint areas of strength, and weakness, to help you increase profits and reverse negative trends. Here's how.

Track Financial Condition

Ratio analysis allows you to see the data behind the indicators, and trend information can be shown in meaningful ways, such as a graph or chart for any number of years available. This helps you see your financial condition in a way that is meaningful to you, so you can start making improvements where necessary, or have the confidence to continue with your efforts as they are.

Compare Your Farm to Your Competition

Looking at the trends of your competitors can be of great value to your farm. Ratio calculations allow you to view industry standards and illustrate financial trends, so you understand where your farm stands against your competition. The success, progress, or shortfalls of your farm, can be understood and addressed, so proper action can be taken. By knowing where you stand against your competitors, you know where to improve, giving you a competitive advantage.

Compare Various Time Frames

Understanding your current situation is crucial. And yet it may be even more important to compare data from two different time frames. Perhaps the past year wasn′t profitable and you want to turn it around. Or maybe you want to understand why you were struggling so much last month. Use ratio analysis as a high-level tool to see trends over longer periods of time, so you can achieve long-term financial growth.

By using Ratio analysis, you can access information and trends that you may not have noticed, so you can make changes accordingly, which will benefit your farm!

This worksheet can be used as a guide to help your organization find the best farm software application for you. Consider each field of information and fill in the appropriate answer for your needs. Send this check list to accounting software vendors you are interested in, or simply use it as a guideline when talking to vendors.

https://www.redwingsoftware.com/home/file-2124

Using accounting software to help manage your farm and its finances is a wise decision. Software can help you become more organized and profitable, and can also provide tools to manage taxes, write checks, enter payables and receivables, manage your general ledger, and so much more. But how does a farmer know when to switch from a basic accounting program to an agricultural-based program? Use this article to help you decide if it’s time to replace your general accounting software with agricultural-based accounting software. Here are signs it’s time to make the switch.

1. You are unsure of your farm’s financial future.

   Entering data into a software system is beneficial because all of your financial information is organized in one place, and is easily accessible. A true agricultural accounting system can do more for you than just organize data. It can help you project future sales and create ‘what if’ scenarios for your farm, which can help you accurately plan for future business strategies. Some systems even include ratio analysis, which helps you calculate standard agricultural-specific ratios, and also understand trends. Knowing where your farming operation stands with ratios can help you address issues and become more profitable.

2. You don’t know your true crop and livestock costs.

   Knowing the overall profitability of your farm is extremely helpful, but which of your enterprises are generating the most profits? The key to increasing profits is knowing where to focus, and an agricultural-based accounting system can help with this. Production analysis is a tool that provides detailed crop and livestock information on a cost per unit basis. With that information, you can see where changes need to be made, and make intelligent decisions on how to increase your profits. Another helpful tool is the ability to distribute complex transactions across multiple accounts and production units, rather than simply attributing the transactions to a single account. Multiple account distribution, which most basic software programs do not offer, can provide a more accurate financial picture for your farming operation.

3. People are requesting crucial information you cannot provide.

   As your operation grows, it may become necessary to provide more detailed financial information about your farm to third parties such as bankers, landlords, managers, consultants, and others. Having the ability to track detailed information about each aspect of your farm, allows you to pull that information when you need it, making it easy to provide third parties the detailed information they require. A good agricultural-based system provides in-depth financial analysis with the ability to structure and segment entire operations, profit centers, accounts, and inventories to track data, combine entities, and receive relevant farm reporting

If any of the above signs ring true for you, it may be time to find agricultural-specific accounting software for your farm.