Download Using the `Standards` in an Accounting Firm — Ben Romine

Using the Standards in an
Accounting Firm
Ben Romine, EA,
MBA
The Romine Group CPA Firm
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Firm started in 1983
Consists of 9 employees
65% of client base is Ag or Ag-related
Located in Columbia City, IN
Service Northeast Quarter of the state
Working with producer
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Enterprising
– Livestock/Grain
– Individual location
– Commodity
– Field
– Other ventures
Cost analysis
– Cost of production
– Cost per acre
– Historical comparison
Benchmarking projects
– Peer groups
– Supplier funded project
– No wide spread benchmarking available
Annual ratio analysis
Software setup/implementation
– Setup of Chart of Accounts/Profit Centers
– Currently using Centerpoint/AG Check/QuickBooks/Farm Works
What a difference a year makes!
Working with Lenders
• Preparation of Financial Statements under
Standards for Banks
• Education of non ag lenders on FFSC and
importance of utilizing them
• Preparation of Farm Credit Style Balance
Sheet to convert cash to accrual
Using them in Tax Compliance and Planning
• Historical trends
• Provides data for support in audit
– Recent audit of Livestock producer and Grain producer
• Calculation of Deferred Tax Liability
• Planning of exit strategy over time
Using the standards in long term planning
• On clients that don’t have complete accrual records
cash to accrual method provides a means to:
– Develop valuation for buy-sells
– Valuation for estate planning
– Calculate cost of liquidation
• Clients that have complete accrual records
– Valuations are easily updated annually from these
statement
– Assists with decisions on expansion/contraction
Using the Council
• Excellent reference guide
– For footnotes and presentation
– Examples of various scenarios/case studies
– For training staff
• The network
– Other members are resources to bounce ideas off
– Resources in areas of specialty that we may not have
– Opportunity to network with others
Changing times
Issues/Concerns
 Variation from GAAP Peer Review firms
don’t always understand them
 Not a standard application of standards
across lending institutions(Different
lenders want information in different
formats)
 Lack of 3rd party benchmarking
 Need for education for small-mid range
producers on how to apply standards,
and what they mean.
 Lack of ERP software/integration with
Data systems(JD Link, Trimble, Grain
Systems Software)
Suggestions
 Develop forum/discussion board for
members
 Develop benchmarking platform
 Cliffnotes guide for producers
 Farm Financials Standards
University(Maybe addressed by AgFate)
 Information similar to what was provided
on FFSC site regarding drought silage
Questions/Comments
Contact Info:
The Romine Group CPA Firm
662 Countryside Drive Ste 105
Columbia City, IN 46725
260-244-7120-Phone
260-244-4626-Fax
www.rominegroupcpas.com