By Paddy Terry, Partner Success Manager
Figured offers farming businesses the tools they need to give them a comprehensive overview of their finances
Agricultural businesses in the UK face many challenges, however, some of the most pressing are being exacerbated by changes in subsidy and market volatility.
Farmers are having to balance the day-to-day operations of running a profitable business with understanding the direction of travel, calculating the impact of changes in market dynamics and accessing finance when required. Having the best advisory team on hand to help, and being equipped with the best tools to assist in the process, has never been more important.
According to a recent survey by Defra (published in research from Savills), 23% of farmers plan to expand their businesses following the recent changes to subsidies in the UK. Many of these businesses will require an accurate assessment of their finances to understand the capacity for expansion, and lenders will need to understand how much finance is required and what terms are suitable for the parties involved.
Figured's cloud-based technology platform exists to help drive the business of farming, by giving farmers and their accountants and consultants the tools needed to drive meaningful insights into their businesses. All parties involved are able to benefit from the data flow between the farm financial management software Figured and leading accounting platform, Xero.
Landowners are able to have more detailed and valuable conversations with advisors and lenders by using real-time data on their finances and utilising Figured’s market-leading enterprise tracking, planning, budgeting and scenario modelling capabilities.
The financial impact of making changes to the farming business can be better understood and discussed by using these tools, leading to more informed decision making for all stakeholders. Examples of scenarios that can be modelled include planning diversification projects, purchasing of land, understanding the impact of changes in crop prices, or choosing to expand an existing dairy herd with more stock or better milking facilities.
Land agents and banks are also able to leverage the Figured Insights platform to understand the financial health of the farming businesses that they are supporting at the portfolio level, or are wanting to assess single businesses wanting to access finance.
This article originally appeared on cla.org.uk.
To find out more about how Figured can help you and your business, get in touch with us here.