is after they have their fi rst calf,” Bevers says. “While their nutrition and performance may dictate that they remain separated from the ma- ture females, they no longer need to be isolated from the inventory standpoint.” Keeping an accurate calf inven-
“At the end of the year, it is kind of like the ENQWFU RCTV CPF [QW ¿ PCNN[ JCXG UQOG IQQF numbers to work with,” Bevers says. “It’s at that RQKPV YJGP [QW IGV VQ VJG IQQF UVWHH CPF VJG analysis can happen.”
tory count can be diffi cult because they are always moving in and out of the inventory. However, tracking calf inventory is relatively simple by breaking calf numbers into a raised and purchased category. From a bull standpoint, it is even simpler. They also only need to be sorted by pur- chased and raised. “As to why this is important,” Bevers said, “these
numbers start to form the linkages between the inven- tories and the fi nancial records. Plus, well, it is just good business. It is important to keep these numbers in order to be the most effi cient ranch operation that you can.” After a rancher has a good idea of what is in the
pasture, it is time to turn to what is probably the more dreaded record — fi nancials. Bevers suggests taking a look at the fi nances fi rst, in terms of a balance sheet that incorporates those inventory numbers, along with a profi t-and-loss statement that includes sales and deposits. “There is a good possibility that it doesn’t match,”
Bevers says. “What you want is to have all of your as- sets, regardless if they are tax based or not, on a balance sheet. It should all fl ow into the fi nancial statements.” From there, incorporate some type of accounting
system to track fi nancials, like QuickBooks. Again, any program or system can be used. It just needs to work for the rancher. A rancher then needs to create or incorporate an all-encompassing chart of accounts for their given operation. “It is important to identify the enterprises they want
to try to keep track of,” Bevers says. “It may have a hay-producing component, wheat pasture component or wildlife component.” It will take time to fi gure out where each transac-
tion should go in order to keep accurate records. The hardest part, Bevers suggests, is getting started, but once you get a good system and set of rules in place, it’s not as diffi cult. “It is just due diligence,” Bevers says. “It’s having
that person there, what I would call the data entry per- son. A lot of times that’s a spouse or maybe yourself,
tscra.org #CattleRaisers
but whoever it is they need to be diligent and realize that they are an important part of the team.”
Year-end review At the end of the year, you should be able to re-
view fi nancials, where total revenue (money made) and expenses (money spent) can be easily identi- fi ed and completely accurate. From those 2 numbers alone, net income can be fi gured along with a slew of other fi gures. “At the end of the year, it is kind of like the clouds
part and you fi nally have some good numbers to work with,” Bevers says. “It’s at that point, when you get to the good stuff and the analysis can happen.” From this point, the 13 KPI’s Bevers developed can
now be used to identity production, fi nancial effi ciency and changes that need to be made. To further heighten the accuracy of your records, Bevers suggests preg- checking cattle. That way, the rancher knows from the beginning if the loss is during breeding, instead of assuming it is during calving or weaning. The 13 KPIs and other analysis processes serve much
as the warning lights on a pickup; when the lights start fl ashing, you know there is a problem. It could be a thousand things that need to be im-
proved, but analysis with the 13 KPIs can help identify exactly where those changes need to be made. How- ever, if you don’t start on Jan. 1 with keeping accurate inventories and records, you may never know where the problem lies. “I have ranches I’ve worked with for 10 to 12 years
and it is at that point that those guys are the most ef- fi cient,” Bevers says. “They know exactly where every dollar is going, but to get to that point there has to be a lot of patience and determination that you are going to do this over time.” Check the Ranching section of The Cattleman each
month to learn more about how your ranch can in- crease its bottom line using Bevers’ 13 KPIs. The fi rst KPI installment is on page 74 of this issue. ❚
January 2017 The Cattleman 91
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