Annual Farm Financial Review Checklist

• financial review
• records
• planning

When should I do an annual farm financial review?

Pick a quiet window after harvest or sales and before the tax filing rush or spring inputs. Many farms like the weeks right after year-end, when numbers are fresh and the operating loan renewal is coming. Block time on the calendar and invite your spouse, partners or the family members who help run the business.

A review does not need to take a week. A focused half day with organized records covers the essentials. The value comes from doing it every year.

Many farms find that the review goes faster when someone other than the main bookkeeper looks over the numbers. A spouse, partner or advisor will often spot an entry that does not make sense.

Which financial statements should I update?

Three documents do most of the work: a balance sheet showing assets and debts at a point in time, an income statement showing profit over the year, and a cash flow statement showing money in and out. Land-grant farm management programs, including the University of Minnesota's FINPACK tools and Iowa State's worksheets, explain how to build and read them.

Compare each to last year. Did working capital grow or shrink? Did debt rise faster than assets? Are expenses growing faster than sales?

Store the finished review where the family can find it. Next year, you can compare line by line instead of starting from scratch, and a lender or successor can see how the business has changed over time.

• Balance sheet with market values and cost values
• Income statement on an accrual basis if possible
• Cash flow, actual versus projected
• Debt schedule with rates and due dates

What should I check on debt and credit?

Update your debt schedule and look at what is due in the coming year. Review rates and terms with your lender, and note any covenants or reporting requirements. Check that every loan is recorded correctly and that you know which assets secure what.

Lenders look at repayment capacity, working capital, collateral and character, among other things, so a clean, current set of statements helps your next meeting go more smoothly. Check your personal and business credit reports for errors.

What about insurance, risk and records?

Review property, liability, equipment, crop and livestock coverage with your agents each year. Replacement values change, and farm operations change too. Confirm that the right people are named, and that you understand deadlines for any coverage that must be selected ahead of the season.

Also confirm that records are organized: acreage reports, leases, payment documents, equipment titles and loan papers. FSA and RMA programs may ask for them.

How do taxes and succession fit in?

Meet with your CPA before year-end if you can, so decisions can still be made. IRS Publication 225 is the farmer's tax guide and the IRS farmers and ranchers page links related resources. Ask about recordkeeping, entity structure and anything that changed this year.

If your plans include passing the farm on, add an annual check on wills, beneficiaries and entity documents. Estate topics need an attorney, and starting early is easier on families.

How do I turn the review into goals?

Finish with three to five written goals for the year, each with a number and a date. For example, build working capital to a target you set with your lender, reduce a cost per unit, or finish a specific repair or purchase. Assign who is responsible.

Schedule a quick check-in each quarter to compare plan to actual. A short, regular rhythm catches problems while they are still small.

What should I bring to the lender or advisor meeting?

Bring the updated statements, a projected cash flow for the coming year, your debt schedule, insurance summaries, and a short list of questions. Add notes about changes you expect, such as new rented land, a retirement, or a planned purchase.

Ask what the lender looks at most closely, and where your numbers look strongest and weakest. Ask what documents they will want next year so you can collect them as you go instead of all at once.

If you work with an accountant or extension farm business advisor, share the same package with them. Different advisors catch different things, and having one set of numbers keeps everyone talking about the same facts.

Last reviewed: November 12, 2026. Written by the Farm Money & Grants Editorial Team. Educational only, not tax, legal or financial advice. See our editorial policy.