FarmSMART
December 2014
In This Issue
E-Filing 1099s
Method B Accounting
FBS Users In the News
Boot Camp Reboots
Trade Show Schedule
December Free Webinars
Q&A--Bulk Scanning
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Dear (Contact First Name), 


Merry Christmas from the "real world" of farm software in the heart of Silt-Loam Valley.

In the December issue of FarmSmart: 
  • E-Filing 1099s.
  • Accounting Method ABC.
  • FBS Users in the news.
  • Boot Camp reboots.
  • Trade show schedule.
  • January free webinar schedule.
  • Link to recorded webinars.
  • Reversing journal entries.                                                  

     

 And the shepherds returned, glorifying and praising God for all they had heard and seen, as it had been told them.


Luke 2:20
 
                                                                                                                 

                                                                                  Soli Deo Gloria

Utilizing Your Upgrade:
E-File 1099s




 


 

We're pleased to announce that FBS Systems now provides complete electronic filing of your 1099 forms directly from your TransAction Plus software.


 

The new e-file functionality makes year end reporting simple. Just a few clicks can eliminate the need for printing paper forms and stuffing envelopes and save you valuable time.

  • Federal E-Filing- Your data is sent from your software directly to the IRS through the NELCO secure portal. You don't have to download or upload any data to multiple government websites.
     
  • State E-Filing- Your software provider will send your 1099 data directly to the states in whatever format is required by that state. You don't have to keep up-to-date with various state filing requirements.
     
  • Recipient Print & Mail Fulfillment- All completed filings can be automatically printed and mailed directly to recipients. You don't have to manually print and mail forms to recipients.
     
  • Online Retrieval- Included with Recipient Print/Mail fulfillment, recipients can retrieve their 1099 forms electronically, and skip waiting for the mail.
This function is available for all current version (8.15 / 10.4) TransAction Plus users.  Just select the Nelco File option when generating a 1099 Miscellaneous or Interest form (see below).



You'll be directed to a secure web portal to complete the upload process.

Click here to view the E-Filing webinar conducted by Technical Services Manager Sarah Dixon.

Special January Offer for FBS Users

Be sure to enter the promotion code AY7 to receive a 10% discount on the filing cost.

If you haven't received your 8.15/10.4 upgrade yet call FBS at 800.437.7638 / Extension 2.

Accounting Method ABC:  "Mountaintop Managerial Experience"

In prior installments in this series, we covered the two key questions in the Growth Path Accounting Decision Tree.  This month we continue tracing the accounting results from these decisions.

So far we've identified three accounting implementations:  Method C (cash only reports), Method A (stand-alone accrual accounting) and Method B (a"hybrid" of cash accounting and integrated production records).


This month we look at a fourth option designed for managers who find all the other methods falling short of their requirements.  You're a candidate for accounting Method ABC if:


Your accounting staff is already preparing real-time accrual financial statements and are looking for an automated way to update those statements from internal business activities.

 

Or...


You want to move beyond simple enterprise analysis to tighter reporting and control of you major business segments (farms, fields, animal groups, and support centers like equipment, facilities and activities).

 

  


What Does Method ABC look like?

1. Integration with production information.  If you're tracking field or livestock performance records, the direct and indirect costs will come through your accounting records.  

2. Cash and/or accrual accounting.  You can continue reporting taxes on a cash basis but also produce accrual financial statements.


3. Real-time cost-basis inventories.  Both accounting and production events will drive inventories.  Inputs like seed, chemicals, fertilizer and feed and growing/harvested crops and growing animals will be valued at actual cost. 

 

4. Tight accounting tie-out between physical activities and financial statements.  All raw material, work in process and finished goods inventories flow through the balance sheet and income statement without losing management detail, permitting "slice and dice" analysis at any level and any point in time.

 

What are the benefits of Method ABC?

 

1. Accounting control of your business at the same level as you manage:  by commodity, production year, farm, field, group or support activity.  Other alternatives may "plug" costs into livestock closeouts or field reports but performance doesn't feed back into accounting and accounting doesn't drive all costs down to the field or group.

 

2. Provides controllers, auditors and lenders an interlocking detailed audit trail that emulates accounting principles followed by the manufacturing world and the Farm Financial Standards Council

 

3. Can continue to record most accounting transactions as expenses or revenues with the accrual inventory and expense adjustments occurring automatically"behind the scenes."

 

4. Doesn't require that production employees allocate costs or accounting employees perform manual work-in-process adjustments.

 

What are the downsides of Method ABC?

While a "mountain top accounting experience," Method ABC is definitely not for everyone.

1. System cost.  There's an up-front cost to knowing your costs.  Specialized vertical market software always costs more than generic accounting software.   

2. Learning curve.  If your current practice is do-it-yourself Method C or accountant-generated Method A, adopting Method ABC will require a more structured view of your business.  FBS provides training and consulting in this field following the Farm Financial Standards Council Management Accounting Guidelines.


 

3. Staff and professional involvement. You don't have to have a full-time controller to take advantage of Method ABC but you may need to collaborate with trusted professionals like the ones you'll find on the Partners page of our website. 


4. Requires a company culture that values and uses information.  If you're an accounting "lumper" rather than a "splitter," are having trouble collecting data from employees or view accounting as nothing more than a "necessary evil" for the banker or IRS, then you're not ready for Method ABC.

For a free webinar explaining how Method ABC works, contact FBS at sales@fbssystems.com or 800.437.7638 /Ext 2.

FBS Users In the News

Nebraska corn, soybean and milo grower Scott Richert appeared in the "Relieve Pest Pressure" section of the September 2014 Farm Journal.  Scott grows commercial corn and food-grade white corn as well as white and yellow seed corn for Pioneer so his pest control program can be challenging and complex.
Boot Camp Reboots in 2015

 

2015 may be a tough year for agriculture. That's why it's so important to do everything you can to boost your financial skills as margins tighten. If you need a refresher course on Ag finance, join Farm Futures and instructors from the Farm Financial Standards Council for the 2015 Ag Finance Boot Camp on Jan. 6 at the Hilton St. Louis at the Ballpark hotel.

 

This one-day program is designed specifically for farmers, bookkeepers and business managers who understand the basics of financial record-keeping, but want more information on how to use financial records to make sound management and production decisions. Topics include:

  • how accrual transactions affect income statements and balance sheets.
  • how to measure business performance by using ratio analysis.
  • how to find and use financial resources that can help your farm perform better.
  • how to get what you want when working with lenders and accountants.

This workshop will help you uncover your strengths and weaknesses in record-keeping. You'll learn to make better decisions that lead to greater financial stability.


 

The Boot Camp is guided by a team of Ag finance experts at the Farm Financial Standards Council. Attendees can split into two groups based on their level of education and experience. The groups come together for afternoon sessions to discuss big-picture topics and interact with panel discussions.

 

Click here to register. 

2015 Trade Show Schedule
Catch up with the latest developments in FBS Software at these upcoming trade shows:

Show
Date
Location 
Booth #
Minnesota Pork CongressJan. 21-22Minneapolis Convention Center
121
Iowa Pork CongressJan. 28-29Iowa Events Center     Des Moines
207
Illinois Pork ConferenceFeb. 3-4Peoria Civic Centers
TBD
National Farm Machinery ShowFeb. 11-14Kentucky Exposition Center, Louisville
620A
Commodity ClassicFeb. 26-28Phoenix Convention Center
2700
World Pork ExpoJune 3-5Iowa State Fairgrounds Des Moines
131

January Free Webinars

Jan.  5:  Starting the New Year 
Jan. 12:  Planning for the 2015 Crop Year
Jan. 19:  Attendees Choice
Jan. 26:  LifeCycle Budget

All webinars run between 1:00 pm and 2:00 pm CST.   

To register, e-mail support@fbssystems.com by 12:00 pm CDT on the day of the webinar.

NEW:  Catch up on the webinars you've missed by watching them on the Webinar page of our website.

Q&A of the Month:  How to Create a Reversing Entry
Sarah Dixon
Sarah Dixon, FBS Technical Services Manager.

 

Q.

 
 I checked the the Reversing Entry box in a Journal Entry but nothing happened.


 

A.  Auto-reversing journal entries are very handy for making temporary adjustments that you want to clear out in the next accounting period.  Keep in mind that the Reversing Entry check box only works with new journal entries.


 


 

FBS auto-reversing journal entries are normally created one day after the original entry so you'd make them on the last day of the month or year.  However, the latest update to FBS versions 8.15 and 10.4 will allow you to make them any day of the month.  (This is especially handy for adjusting inventories that run negative most of the month.)

 

To activate this new option go to Utilities > Set Preferences and find the line TA+ Reverse Entry Date.

 

 

 

Enter a 1 in the Value column to represent the day of the next month you wish the reversing entry to be posted.  (The most common choice is the first day of the month.

 

You'll now be able to record the original entry on any day of the month and the reversing entry will not be created until the first day of the next month. 

Sincerely,

FBS Systems