Jun 2025
Why Good Bookkeeping Matters for Your Farm Business
Purbaj Ranabhat
Jun 2025
Why Good Bookkeeping Matters for Your Farm Business

At Planfarm, we’ve walked alongside Western Australian farmers for over 50 years, and if there’s one thing we’ve learned, it’s this: solid bookkeeping is the backbone of every successful farm business. It’s not just about tracking expenses—it’s about understanding your business inside out so you can make confident, informed decisions for the future. Having a tidy, up-to-date cashbook also allows you to be ready to pounce when opportunities arise, putting you in front of your peers.

We know how busy life can be managing your business, team, family and off-farm life. Whether you’re seeding, harvesting, or chasing up contractors, the books can quickly fall to the bottom of the priority list. But here’s why putting a system in place can save you stress, time, and money in the long run.

Why Bookkeeping is More Than Just Record-Keeping

1. Make Smarter Decisions, Faster
Accurate financial records give you real-time insight into your cash flow and profitability. Whether you’re considering upgrading machinery, expanding your cropping program, or hiring more workers, good data helps you make the right call.
2. Keep Cash Flow in Check
It’s easy to lose track of money going in and out, especially during peak seasons. Proper bookkeeping helps you monitor payments, chase up overdue accounts, and helps you prepare for those dreaded cash flow crunches.
3. Take the Stress Out of Tax Time
Up-to-date books mean fewer headaches when lodging your BAS or end-of-year tax return. You’ll have everything you need at your fingertips, making it easier to claim deductions and stay compliant.
4. Stay on the Right Side of the Law
Accurate financial records help meet ATO and regulatory requirements, reducing the risk of penalties or issues .
5. Access to Funding When You Need It
Whether you’re applying for finance for machinery or farm purchases, clean books give banks confidence in your business’s viability and growth.
6. Track Performance Over Time
By comparing financial reports year on year, you can measure progress, set realistic goals, and spot trends—positive or otherwise—early.
7. Reduce Mistakes and Spot Fraud Early
A well-maintained system helps catch errors and unusual activity before they become big problems.
8. Save Time, Save Money
Avoid the cost of fixing errors later by staying on top of things now. Clean books are a time saver, not a time waster.

Top Tips for Better Bookkeeping
Here’s how to keep your records in order without losing your weekends to paperwork:

1. Stay Organised
Keep invoices, receipts, and bank statements in one place, whether using a shoebox or software like Agrimaster, Xero or MYOB . It makes reviews, audits, and decision-making easier.
2. Double-Check Accuracy
Reconcile your accounts regularly and make sure every transaction is categorised correctly. It keeps your records clean and your reports reliable.
3. Set Time Aside Each Month
A regular review—even 30 minutes—can help you spot issues early, adjust your budget, and plan confidently .
4. Separate Farm and Family Finances
Use different bank accounts for business and personal expenses. It simplifies your books and your accountant’s life at tax time.
5. Stay Informed on Tax Rules
The ATO’s regulations change often. Knowing the latest rules around deductions and deadlines can help you stay compliant and reduce tax stress.
6. Add Internal Safeguards
Especially in bigger farm businesses, set clear roles and access levels for anyone handling the books. A second set of eyes never hurts.
7. Know When to Get Help
If you find the books are taking time away from what matters, we’re here to help.

Introducing Planfarm Bookkeeping

That’s why we’ve launched our bookkeeping service specifically for WA farmers. It’s built on decades of farm business consulting and now delivered by our skilled team, including Purbaj, our specialist bookkeeper with experience in broadacre farming and financial accounting.

From payroll and BAS lodgement to bank reconciliation and data entry, we can handle the numbers so you can focus on what you do best—running a successful farm.

Let us take the weight of bookkeeping off your shoulders.

📞 Give us a call or speak to your Planfarm consultant today.

We’re here to help you farm smarter—with clarity, confidence, and the proper support behind you.

Author

Purbaj Ranabhat

Purbaj Ranabhat

Accountant

Author

Purbaj Ranabhat

Purbaj Ranabhat

Accountant

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