For many farmers and other self-employed people, doing the books is a bit like going to a wake. You don’t want to face into either, but you’re always glad you made the effort when you do.
Wakes are solemn occasions. You shake hands with people you often only half know through a friend or relation. You make small talk with other sympathisers about the weather, the dead person (“he went quick in the end”) and the news of the day. You might get a cup of weak tea and a plain biscuit shoved into your hand, as you shift uneasily and look for a quiet corner where you can stand out of the way.
But then you’re out of there. Ten unpleasant minutes and you’ve done your duty. You’ve shown your face and won’t have to avoid the corpse’s family for the next 12 months like you would if you hadn’t been at the wake. You might even go for a quiet pint on the way home.
Doing the books is very similar. Most likely, it too is a solemn occasion. You go back over half-remembered receipts and try to make sense of what was happening when you bought something called MX05Velocity from the local co-op (it’s a water pipe fitting I think).
Tea and plain biscuits
You drink plenty of tea and ration yourself on plain biscuits.
Eventually, all outgoings and the odd slip of income has been accounted for and entered on to the ledger. If it’s been an OK year, there might not be too much red ink. You might even reach for a chocolate biscuit to reward yourself before sending everything to the accountant to get the formal side of things moving.
And then you’re done. An hour or two of unpleasantness and you’ve done your duty. You have a better handle on fixed and variable costs, as well as the timing of various sales and purchases. You can look to the year ahead and better plan cashflow and pick out where costs might be reduced.
All in all, you’re in a better position in terms of running the business when you wade through the figures.
The financial return might not be anything special, but at least you’re still above ground and not laid out on the slab with uncomfortable-looking people saying you went quick in the end to your relatives.
Kieran Sullivan and his brother farm part-time in Co Waterford. You can follow him on Twitter: @kieran_sullivan