Importance of robust financial processes

The B+LNZ Sheep and Beef Farm Survey gives a detailed analysis of physical production with financial returns, providing valuable insights into the sector's trends. One critical aspect of this survey is stock reconciliation, which can highlight irregularities such as unexpected levels of deaths and missing animals. 

During a recent Farm Survey visit, Jenny McGimpsey, B+LNZ’s Lead Economic Service Manager discovered a farmer had not been paid for a line of lambs.  

“Thanks to the detailed questions asked during the survey, the farmer was able to follow up and received payment for the lambs 18 months after the transaction,” says McGimpsey. 

"Having robust processes in place is crucial, especially now when farmers are facing low returns. Keeping track of every dollar makes a difference." 

Especially at busy times, it can be useful for farmers to refer back to the following tools and practices to help maintain accurate records and ensure financial returns match physical production: 

• Animal Status Declaration (ASD) forms: These forms are vital for recording stock movements. They must be completed when moving animals between properties or sending them to slaughter. Maintaining copies of ASD forms ensures all movements are documented and can be used as a useful reconciliation tool 
• Loading notes from transport companies: These notes provide third-party verification of stock movements. Keeping and filing these notes can serve as evidence, ensuring transparency and accountability. 
• Regular reconciliation: Regularly reconciling physical movements (using ASD forms and loading notes) with funds received in the bank is crucial. This could be done monthly or at GST time to ensure all transactions are accounted for. 

Finding discrepancies, such as unpaid stock, is rare but can have significant financial implications. More commonly, errors occur with farm inputs being paid for twice. Ensuring that deductions, like shares from processing sheets, have the correct GST status and are recorded correctly in farm accounting software is essential. 

Including quantities or the number of head in farm accounting transactions can also help in maintaining accurate records. This level of detail ensures all transactions are traceable and verifiable. 

In addition to financial accuracy, managing livestock movements is crucial for biosecurity. The National Animal Identification and Tracing (NAIT) scheme enhances traceability for individual animals, helping New Zealand respond quickly to biosecurity threats. Compliance with NAIT regulations and accurate completion of ASD forms are legal requirements that support biosecurity efforts. 

"By linking stock and produce movements with fund receipts, farmers can maintain accurate records, ensuring they are paid for their hard work and contributing to the industry's overall integrity and sustainability,” adds McGimpsey. 

You can find out more about the B+LNZ Sheep and Beef Farm Survey here 

Additional resources

• Biosecurity resources 
• Biosecurity guidelines (PDF, 3.1MB)
• Livestock movement 
• KPI Measures for Red Meat Farming PDF, 1.876KB)

Learning modules

• Biosecurity planning
• Measuring progress – KPIs and benchmarking

Farm planning has stock reconciliations

• Stock reconciliation (learning module)
• Stock reconciliation (Excel, 20KB)