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Sarah Antrobus from Sum it up Book Keeping has been working with farmers for over 20 years.
Here, she shares some useful top tips….
Farming has never been an easy way to make a living, but in recent years the financial pressure has intensified. Rising feed costs, volatile commodity prices, changes to subsidies, labour shortages and increasing compliance demands mean margins are tighter than ever. In this environment, many farmers are scrutinising every spend – labour, fuel, fertiliser, feed, machinery – yet one area often overlooked is financial management.
For many farms, bookkeeping is still treated as a necessary chore rather than a strategic tool. Often it’s done late at night, at year end, or handed over to an accountant once a year with a carrier bag of invoices. But a good bookkeeper, particularly one who understands farming, can play a crucial role in saving money, improving cash flow and reducing stress.
This isn’t about fancy spreadsheets, it’s about practical, hands-on support that helps farmers make smart decisions, have accurate information at their finger tips and prevents unnecessary cost to their business.
At its most basic, bookkeeping is about recording income and expenses. But good bookkeeping goes much further than data entry. In practice, good bookkeeping gives farmers visibility. Instead of guessing how the business is performing, they can see it clearly.
When records are kept up to date throughout the year, problems show up early. Costs that are creeping up can be spotted before they spiral. Income gaps become visible rather than coming as a nasty surprise months later. Decisions are made with facts rather than assumptions, and the business feels more controlled as a result.
A bookkeeper with farming experience also understands the rhythms of the year. They know that cash flow looks very different in February than it does at harvest, and they work with that reality rather than against it.
VAT is one of the biggest opportunities for savings — and one of the biggest risks — for farm businesses. The rules are complicated, and agriculture sits in a world of zero-rated produce, standard-rated contracting, mixed enterprises and diversified income streams.
It’s not unusual for farms to miss legitimate VAT reclaims simply because no one is keeping track closely enough. Equally, small mistakes can trigger HMRC queries that take time and energy to resolve.
A good bookkeeper ensures VAT is reclaimed fully and correctly, returns are submitted on time, and capital purchases such as machinery or building projects are treated properly. They also keep an eye on diversification and mixed income, flagging potential partial exemption issues before they become expensive problems.
A bookkeeper who understands farming VAT can often pay for themselves through VAT savings alone.
Profit is important, but cash flow keeps the farm running day to day. Even profitable businesses can struggle if money comes in at the wrong time of year or goes out faster than expected.
Regular bookkeeping gives farmers a clearer picture of where the pressure points are likely to fall. Instead of reacting to cash shortages, they can plan for them. VAT payments can be anticipated, large bills scheduled more sensibly, and conversations with the bank approached with confidence rather than urgency.
Over time, better cash flow management can reduce reliance on overdrafts and short-term borrowing, cutting interest costs and easing stress.
Many farms only engage financially with their business once a year, when the accountant prepares the accounts. If the records are incomplete or disorganised, the accountant has to spend time sorting them – and that time is billed.
A good bookkeeper keeps records clean and reconciled throughout the year. Transactions are coded properly, paperwork is organised, and year-end information is ready when needed. This allows the accountant to focus on what they do best: tax planning, compliance and advice.
The result is often a lower accountancy bill, faster turnaround at year end and fewer unpleasant surprises.
Most farmers know how hard they work, but fewer know which parts of the business are truly making money.
Is contracting paying its way once fuel, repairs and labour are included? Are livestock enterprises profitable on their own merits, or supported by arable margins? Is diversification actually contributing, or just adding workload?
Good bookkeeping allows the figures to be broken down in a meaningful way. When farmers can see which enterprises are pulling their weight and which are not, they can make better decisions about where to focus time, money and effort.
Is contracting paying its way once fuel, repairs and labour are included? Are livestock enterprises profitable on their own merits, or supported by arable margins? Is diversification actually contributing, or just adding workload?
Good bookkeeping allows the figures to be broken down in a meaningful way. When farmers can see which enterprises are pulling their weight and which are not, they can make better decisions about where to focus time, money and effort.
Farming decisions are often made under pressure — weather windows, machinery breakdowns and market movements don’t wait for year-end accounts. Having accurate, up-to-date figures makes those decisions less risky.
With good bookkeeping in place, farmers can properly assess major purchases, understand the true cost of labour, plan investment sensibly and evaluate new opportunities with open eyes. Decisions are still practical and pragmatic, but they are supported by solid information.
One of the biggest benefits of a good bookkeeper is rarely measured in pounds and pence. Many farmers spend evenings and weekends worrying about paperwork, tax bills or whether they’ve missed something important.
Handing bookkeeping to a trusted professional frees up time and mental energy. Problems are dealt with early, finances feel under control, and the business becomes less of a constant worry. In an industry where stress levels are high, that peace of mind matters.
Not all bookkeepers are the same. Farming is a specialist sector, and experience matters.
When choosing a bookkeeper, look for someone who:
· Has experience with agricultural businesses
· Understands farming VAT
· Uses modern accounting software
· Communicates clearly, without jargon
· Works collaboratively with your accountant
· Is proactive, not just reactive
The cheapest option is rarely the best. A good bookkeeper is an investment, not a cost.
Bookkeepers rarely get much attention. They’re not driving tractors, feeding livestock or drilling crops. But behind many successful farms is someone quietly keeping the finances organised, compliant and working efficiently.
In a sector where margins are slim and uncertainty is high, having clear, timely financial information is no longer optional. A good bookkeeper can help farms keep more of what they earn, avoid unnecessary costs and make better decisions for the future.
In today’s farming climate, that support isn’t a luxury – it’s a competitive advantage.
There are currently two job vacancies for book keepers at Sum It Up Bookkeeping. If you’re interested in joining the team, you can details about these at: https://farmartmedia.co.uk/job/sumitup-bookkeeping-north-cheshire-part-time-rural-bookkeeper/
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