Integrated Farm Financial Statements (IFFS) Software

1. Integrated Farm Financial Statements (IFFS) Software Damona Doye OSU Extension Economist

2. IFFS applications and links • Planning and analysis tool • IFMAPS • Case study development for workshops and courses • Farm management courses and labs • Other educators • Lenders • Producers • Enterprise budget software will create IFFS budgets • Quicken data can be imported into IFFS

3. IFFS Additional Information Crop and Livestock Budgets Cash flow statement Debt worksheet Income statement, financial ratios, stress test Balance sheet

4. IFFS data collection • Worksheets that are useful to complete for the farm before beginning software use: • Trend worksheet • Cash operating expense allocation worksheet • Worksheets summarizing production and, if possible, monthly expense allocation • Asset inventory • Debt worksheet • Other income worksheets • Family living expenses worksheet • Worksheets at http://www.agecon.okstate.edu/iffs/

5. Developing a whole farm/ranch plan • Collect farm financial and production information • Develop enterprise budgets (CLBUD) • Complete Additional Information worksheet (AI) • Record asset and liability information (MULTSTAT) • Load budgets (enterprise budgets and additional information) into MULTSTAT • Review financial statements and summary

6. Measuring financial performance and position • Liquidity • Solvency • Profitability • Financial efficiency • Repayment capacity

7. Evaluating options for change • Control costs, withdrawals • Increase returns • Insurance protection • Change enterprise mix • Change asset ownership • Supplemental income • Debt restructuring or rescheduling

8. Steps in developing alternative financial plans • Outline changes to be made • Modify budgets • Add, remove budgets • Revise balance sheet • Modify debt worksheet • Save new plan

9. Keys to successfully using financial plans and measures • Develop plans, measures annually • Be consistent in how they are developed • Note reasons for “unusual” measures • Use information to deal with potential problems before they get out of hand

10. Getting Quicken data to IFFS • Map Quicken categories to names in IFFS reports, for example: • FeedPurch in Quicken to Feed Purchased in IFFS • Fert and Lime in Quicken to Fert, Lime, Chem in IFFS • Chemicals in Quicken to Fert, Lime, Chem in IFFS • Import Quicken data into IFFS

11. Getting Quicken data to IFFS

12. References • Osuextra.com for fact sheets and current reports • IFFS: http://www.agecon.okstate.edu/IFFS/ • IFMAPS: http://www.agecon.okstate.edu/IFMAPS/ • Center for Farm Financial Management, U of Minnesota: http://www.cffm.umn.edu • Farm Financial Standards Council:http://www.ffsc.org • Farm.doc: http://www.farmdoc.uiuc.edu/finance/business.html • Iowa State U: http://isufarmeconomyteam.org • Montana State U: http://www.montana.edu/extensionecon/index.html • National Ag Risk Library, University of Minnesota: http://www.agrisk.umn.edu/ • Purdue U Ag Econ Department: http://www.agecon.purdue.edu/extension/ • QuickBooks and SPA Texas A&M Extension Economics: agrisk.tamu.edu • U of Tennessee: http://www.utextension.utk.edu • Virginia Tech Cooperative Extension (Timely Topics newsletter – farm business management): http://www.ext.vt.edu/cgi-bin/WebObjects/Docs.woa/wa/getnews?cat=tt-news-fmu