Using the Standards in an Accounting Firm Ben Romine, EA, MBA

The Romine Group CPA Firm Firm started in 1983 Consists of 9 employees 65% of client base is Ag or Ag-related Located in Columbia City, IN Service Northeast Quarter of the state

Working with producer Enterprising –Livestock/Grain –Individual location –Commodity –Field –Other ventures Cost analysis –Cost of production –Cost per acre –Historical comparison Benchmarking projects –Peer groups –Supplier funded project –No wide spread benchmarking available Annual ratio analysis Software setup/implementation –Setup of Chart of Accounts/Profit Centers –Currently using Centerpoint/AG Check/QuickBooks/Farm Works

What a difference a year makes!

Working with Lenders Preparation of Financial Statements under Standards for Banks Education of non ag lenders on FFSC and importance of utilizing them Preparation of Farm Credit Style Balance Sheet to convert cash to accrual

Using them in Tax Compliance and Planning Historical trends Provides data for support in audit –Recent audit of Livestock producer and Grain producer Calculation of Deferred Tax Liability Planning of exit strategy over time

Using the standards in long term planning On clients that don’t have complete accrual records cash to accrual method provides a means to: –Develop valuation for buy-sells –Valuation for estate planning –Calculate cost of liquidation Clients that have complete accrual records –Valuations are easily updated annually from these statement –Assists with decisions on expansion/contraction

Using the Council Excellent reference guide –For footnotes and presentation –Examples of various scenarios/case studies –For training staff The network –Other members are resources to bounce ideas off –Resources in areas of specialty that we may not have –Opportunity to network with others

Changing times

Issues/Concerns  Variation from GAAP Peer Review firms don’t always understand them  Not a standard application of standards across lending institutions(Different lenders want information in different formats)  Lack of 3 rd party benchmarking  Need for education for small-mid range producers on how to apply standards, and what they mean.  Lack of ERP software/integration with Data systems(JD Link, Trimble, Grain Systems Software)

Suggestions  Develop forum/discussion board for members  Develop benchmarking platform  Cliffnotes guide for producers  Farm Financials Standards University(Maybe addressed by AgFate)  Information similar to what was provided on FFSC site regarding drought silage

Questions/Comments Contact Info: The Romine Group CPA Firm 662 Countryside Drive Ste 105 Columbia City, IN Phone Fax