Where profit leaks out
Most of the money a livestock business loses doesn't go in one big hit. It goes in lines nobody looks at closely: feed bought at the wrong time or wasted in the trough, freight and selling costs that crept up, repairs on gear that should have been replaced, contract work that costs more than doing it yourself, stock losses, and overdraft interest that comes from the timing of sales rather than the size of the business.
Farm Optimiser puts a dollar figure on each of them, so you can see which three or four matter and leave the rest.
The month, week by week
Week 1: the numbers come in. Three years of financial statements, your Xero file, loan statements and your herd or flock records.
Week 2: how the business runs. We go through feed buying and storage, selling and freight, labour, machinery and contractors with you by video, enterprise by enterprise.
Week 3: the analysis. Every expense line is checked against production, cost of production is worked out per kg, and the balance sheet and debt structure are reviewed. Where it helps, your results are compared with published benchmarks such as the NSW DPI gross margin budgets.
Week 4: recommendations and training. You get a written report with each recommendation, its estimated dollar effect and the assumptions behind it, then two training sessions.
Training for you and your team
The first session covers reading your own profit and loss and balance sheet, and working out cost of production per kg for each enterprise.
The second sets up a monthly routine: budget against actual, a rolling cashflow and the handful of numbers worth watching. You keep the notes and the spreadsheets, and our free calculators and templates fit straight into the routine.
Using finance to fix the balance sheet
Sometimes the problem isn't a cost line but how the debt is set up. Equipment paid for out of the overdraft, a term loan whose repayments fall in the wrong months, or several small facilities that could be combined. The report shows the numbers for each option so you can see the effect on cashflow and interest.
Farm CFO doesn't arrange loans. If you decide to refinance or finance equipment, Levelhead Business Advisors, run by the same company, can arrange it, with any lender commission disclosed in writing before you proceed. You're free to take the numbers to any lender.