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Using the Standards in an Accounting Firm

The Romine Group CPA Firm, established in 1983 and located in Columbia City, IN, offers accounting services to agricultural and ag-related businesses. With a focus on utilizing standards and providing financial expertise, the firm assists clients in tax compliance and planning, long-term planning, and working with lenders. The firm also highlights the importance of benchmarking and provides resources for education and networking.

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Using the Standards in an Accounting Firm

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

  2. 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

  3. 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

  4. What a difference a year makes!

  5. 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

  6. 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

  7. 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

  8. 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

  9. Changing times

  10. 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 3rd 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)

  11. 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

  12. Questions/Comments Contact Info: The Romine Group CPA Firm 662 Countryside Drive Ste 105 Columbia City, IN 46725 260-244-7120-Phone 260-244-4626-Fax www.rominegroupcpas.com

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