With planting in the rearview mirror and fall harvest still a few months away, summer is the perfect time to take a hard look around your operation. A mid-year tune up can help tighten up your finances, uncover opportunities, and make adjustments that pay off by the year’s end.
As a certified public accountant who works with farmers and ranchers across the Midwest, I’ve seen firsthand how a few simple steps can make a big difference. This isn’t just about balancing books—it’s about running a stronger and more resilient business. Here’s a practical checklist to help you get started.
Mid-year checklist
- Add up the numbers. Start by reconciling your loan and checking-account balances to ensure they match your bank’s records. Compare your year-to-date revenues and expenses with your budget. Are you on track? Share any 2025 purchases of equipment, breeding stock, or land with your accountant so he or she can update your depreciation schedule. Also, prepare a list of your deferred grain contracts and assess your current inventory—livestock, seed, fertilizer, chemical, fuel, and unsold grain. Don’t forget that feed costs are tax-deductible.
- Evaluate what’s working. Once you have the numbers in front of you, look them over from a different angle, asking: What’s performing well? What’s not? Are there areas you’ve been overspending? Revisit your risk management plan to see where you could adjust for next year.
- Evaluate your loan position. Review your operating and vendor loans. Can you comfortably cover expenses through the rest of the year? If not, now’s the time to explore financing options or adjust your budget.
- Back up your data. Make sure your customer and vendor contacts are saved and secure. Download important reports or data files so you can continue to do business if a disaster should strike. It’s also a good idea to reorganize your paper and electronic files so you have back-ups that are readily accessible.
- Look for efficiencies. Improving efficiency doesn’t always require a big investment. Often it’s about working smarter. Many cost- and time-saving opportunities come from rethinking routings or streamlining existing processes. Question yourself if your answer is because “that’s how it’s always been done.” One example that can be low cost but high impact is accounting automation software.
- Remember your employees. Look over your employee benefits package, including any potential bonuses and 401(k) contributions. This will help you prepare for employee performance reviews at the end of the year. Further, cash bonuses, gift cards and can go a long way toward rewarding, motivating and retaining the people who help you keep the lights on.
- Talk to your tax adviser. The more your adviser knows, the better he or she can support you with proactive tax planning and financial strategy. Ask about ways to improve your working capital or restructure debt. Even small changes can lead to better flexibility later in the year.
- Bring in the team. Don’t go it alone. Involve your staff, family and adviser in this mid-year tuneup. With everyone on the same page, you’ll be better prepared for the months ahead—and you might enjoy a little more peace of mind this summer.
While I certainly hope you address each item on this list, completing even one or two of these tasks will get you to harvest with fewer surprises and more confidence.
Editor’s note: Maxson Irsik, a certified public accountant, advises owners of professionally managed agribusinesses and family-owned ranches on ways to achieve their goals. Whether an owner’s goal is to expand and grow the business, discover and leverage core competencies, or protect the current owners’ legacy through careful structuring and estate planning, Irsik applies his experience working on and running his own family’s farm to find innovative ways to make it a reality. Contact him at [email protected].
PHOTO: Combine harvester chart. Rising chart on field. (iStock │ #639390306 – rkankaro)
