Our scenario planning tool, which provides a multi-year 3 way view (P&L, cash flow & balance sheet) of the farming operation, was announced at Xerocon South and has already received great feedback from attendees.
This feature will enable you to do “what if” scenarios to assess different opportunities quickly - from scratch or based on a farm’s existing financial position - and see how a business may look several years in the future based on a major financial proposition, variances in commodity prices or key performance figures without having to complete a full cash flow budget.
The tool will also have a cropping input that will allow you make decisions about what you plant, and to understand the bottom line impact of these cropping decisions.
We see this as a tool which will give accountants financial clarity around both small and large decisions, and therefore facilitate better conversations with clients. For banks, it will give them the ability to rapidly assess the validity of credit applications and push automatically into their credit risk systems.
The scenario tool was developed in conjunction with NAB's New Zealand subsidiary, BNZ, and is in Beta testing with a select group of their agri managers. The feature will be released to an extended pilot group over the coming weeks and we expect it to be incorporated into Financial Farmer shortly thereafter. Keep an eye on the blog for further scenario planning tool release updates.