Simplified Decision Making Starts with the Books: How Managerial Accounting Helps Ranchers

Simplified Decision Making Starts with the Books: How Managerial Accounting Helps Ranchers

Knowing ranch numbers is a critical component of turning profits. But knowing the numbers is more than following the rules for tax season and keeping the IRS happy. It’s practicing managerial accounting too.

“What I like to focus on, especially at Ambrook, is managerial accounting,” says Shannon Emley. “And when you're getting to that side of things, the rules are still important, but really it's clarity for decision making for your business.”

Shannon Emley grew up around agriculture in western New York. Today he works at Ambrook and helps producers better understand how to use financial information to make short and long-term decisions.

Managerial accounting starts with timely tracking of all transactions and which enterprises they belong to.

Emley says, “I know that can be a big barrier, but having that straight is really the foundation for being able to make some of those more advanced decisions.”

He encourages ranchers to reduce the overwhelm of starting this process by investing in software that works for them and automatically brings all transactions from bank accounts and credit cards into one place.

Once transactions are tagged and categorized, ranchers can begin to see a real-time picture of finances as well as which enterprises need to be changed, grown or dropped.....



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