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Financial management is crucial for success in agribusiness. This guide explores why effective financial practices are necessary, including how they facilitate better decision-making and prioritization between needs and wants. Key aspects such as tax completion, maintaining accurate records, and budgeting are covered. We also discuss checking accounts: their benefits, like convenience and interest, as well as disadvantages such as potential fees and acceptance issues. Understanding these elements is essential for any agribusiness professional aiming for financial stability and growth.
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Understanding Money Management Intro to Agribusiness
Why Practice Financial Management? • Have needed information to make good decisions • Able to set priorities of needs & wants • Completing Taxes • Accurate records allow you to defend yourself in a tax audit. • Ability to accurately budget
Disadvantage of Financial Management • TIME • Time must be set aside monthly
Checking Accounts • 1. Alternative to cash • 2. Convenient & safe method to make payments by mail • 3. Acceptable form of payment at many businesses • 4. Provides listing of disbursements • 5. May receive interest on account
Checking Accounts • 6. Incentives to open checking accounts • 7. Types of checking accounts • No Fee checking • Interest earning accounts • Package accounts with many features
Disadvantages of Checking Accounts • Many businesses will not accept checks anymore • Monthly fees • Time to balance checkbook monthly • Lost/stolen checks can be used to withdraw funds from your account • Service charges on overdrafts
Reconciliation of Checking Accounts • Mark deposits & checks that have cleared • Add to the balance any checks that have not cleared • Subtract from balance deposits that have not cleared • Deduct service charges
