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Author: Reba Liddy

Cash vs. Accrual

TL;DR: Most farmers use cash accounting for taxes because it’s simpler, but growing farms often use accrual to track true profitability. Here is how to decide which one makes sense for your farm business.    There are two main ways to track your farm’s income and expenses: Cash or Accrual. The most common method is cash filing, simply recording money as it hits or leaves your bank account. However, some farms choose accrual to see the bigger picture of their financial health.   This IRS breaks down the difference between the two. Here is our version specifically for farmers: What is Cash Filing? The cash method means you count transactions only when money actually changes hands. If you sell and get paid today –> today’s income If you buy seed and pay today  → that’s today’s expense It works just like your bank account: money in, money out. This is why most farmers use it—it is easier to manage and aligns well with the seasonality of farming (e.g., buying fertilizer in December to lower your tax bill for that year). What is Filing Accural? Accrual means you report income when you earn it and expenses when you incur them, regardless of when the cash actually moves. Let’s say you invoice a customer for seedlings but they pay you next month—accrual accounting counts for it today instead of next month.  If you sell a crop today, but get paid next month → accrual counts it today If you grab supplies now but pay later → accrual counts when you get the supplies Why do this? It helps farmers see the true profitability of their operation. For example, if you have a barn full of grain that you haven’t sold yet, cash accounting says you are “broke,” but accrual accounting shows you have valuable inventory assets. How Do I Known What’s Right for Me? Cash filing is default. If your farm is small or simple, cash is the most straightforward bucket. If your farm is growing, has significant inventory, accrual accounting might be necessary. You don’t have to figure this out yourself. We work with farmers to handle their bookkeeping and tax strategy, whether you file on cash or accrual.   Learn more about how we help farmers save time and money with our bookkeeping.

Farm Bookkeeping and Tax Tips Webinar Recording

Bookkeeping and taxes are two of the biggest stress points for farmers, especially heading into tax season. In this session, Good Agriculture CEO Alex Edquist explains how to read your financial statements, structure your chart of accounts using Schedule F, track revenue and expenses correctly, and understand depreciation.

Farm Bookkeeping and Tax Tips Webinar Recording

Watch the Advanced Farm Bookkeeping webinar recording to learn practical strategies for improving cash flow, budgeting effectively, and making data-driven financial decisions that strengthen your farm’s long-term profitability.

Advanced Farm Bookkeeping Webinar Recording

Watch the Advanced Farm Bookkeeping webinar recording to learn practical strategies for improving cash flow, budgeting effectively, and making data-driven financial decisions that strengthen your farm’s long-term profitability.

What is a Schedule F Form?

A clear guide to IRS Schedule F for farmers – what it is, who must file, and how to report farm income and expenses accurately for tax season.

The Business of Farming with ASAN

In this conversation with Rachel of the Alabama Sustainable Agriculture Network, Alex and Reba share practical insights on managing farm finances, planning ahead for tax season, and using business tools to help farm operations thrive.

Preparing Your Farm for Taxes Webinar Recording

In this webinar recording, the team focused on helping farmers understand what actually matters when it comes to taxes and how to prepare without scrambling at the last minute. Alex and Euna walked through the basics of farm taxes, including which forms farmers need to file, common deadlines, and how income and expenses flow through a farm business.

Watch The Business of Farming with ASAN Recording

In this conversation with Rachel of the Alabama Sustainable Agriculture Network, Alex and Reba share practical insights on managing farm finances, planning ahead for tax season, and using business tools to help farm operations thrive.

What is EQIP?

What is EQIP? Learn how the Environmental Quality Incentives Program (EQIP) helps farmers access funding for conservation practices, improve soil health, and strengthen long-term farm sustainability.

September 15th Tax Deadlines Are Coming!

The September 15th tax deadline is approaching. Learn what farmers need to file, how estimated payments work, and what steps you can take now to stay organized and avoid penalties.

Stay Ahead of 2025 EQIP Deadlines

EQIP funding can make a major difference for your farm—but only if you meet the deadlines. This guide breaks down 2025 EQIP deadlines, what farmers need to prepare, and how to stay organized so you don’t miss out on conservation funding opportunities.

Preparing for Tax Season Webinar Recording

Watch our tax season preparation webinar recording designed specifically for farmers. Learn how to organize your financial records, reduce stress at tax time, and make smarter decisions for your farm business.

Federal Funding Freeze – What Does This Mean for Farmers?

A federal funding freeze can create uncertainty for farmers relying on USDA grants, cost-share programs, or financial assistance. Learn what a funding freeze may mean for your operation, cash flow planning, and next steps to stay financially prepared.

Prepare for Tax Season with Us and a Tax Professional

Tax season doesn’t have to be stressful. Learn how proper farm bookkeeping and working with a qualified tax professional can help you stay organized, reduce surprises, and confidently prepare your farm business for filing season.

Advanced Farm Financial Management Webinar Recording

Watch the Advanced Farm Financial Management webinar recording to learn practical strategies for improving cash flow, budgeting effectively, and making data-driven financial decisions that strengthen your farm’s long-term profitability.

The Farmer’s Sense

It doesn’t get talked about often enough, but I honestly think that farmers have a superpower. I think farmers have a sixth sense. I call it “The Farmer’s Sense.”