‘You can’t manage what you don’t measure’
YEOVAL graziers, Nigel and Kate Kerin, are something of a ‘teacher’s pet’ in the eyes of their bank manager and accountant.
Their adoption 10 years ago of Practical Systems’ business management software, Cashbook Platinum, has led to a high degree of understanding within their mixed farming business, based at “Karuga Park”.
“Without doubt, the strongest tool we have for planning our grazing business is Cashbook Platinum,” Nigel says.
“We use grazing charts, feed budgets, and re-hash financial budgets from Cashbook to insulate ourselves from the extreme effects of changing climatic conditions”.
“We’re able to sleep easier because our key performance indicators (KPIs) – which are generated through our Business Position Statement (BPS) – tell us that even though we’re in drought, we’re still in a very healthy state, and we have mapped out the road to where we want to go in that financial year.”
“We adopted Cashbook Platinum after learning that you can’t manage what you don’t measure”.
“My way of thinking was if you want to be a highly-leveraged business, you’ve got to have a high level of business management”.
“Cashbook Platinum provides this for us.”
Nigel and Kate were introduced to Cashbook Platinum as StrategicFocus clients of PrincipleFocus, where they now use the BPS as part of the reporting process to their business coach, Sean Martyn.
Across several properties at Yeoval, they run a 19-micron Merino breeding enterprise, composite sheep flock, sheep trading and some cropping, and Nigel was named 2008 NSW Farmer of the Year.
They recently established Kerin Poll Merino Stud, and will host their inaugural on-property ram sale on October 11.
Nigel says the Cashbook Platinum monthly BPS provides the gauges of the business.
“It shows us if and where we have a weak link to address,” he says.
“We are now able to make expansion decisions based on this document and the highly-accurate information it provides.
“Cashbook Platinum is highly-accurate and easy to use, giving us a high degree of faith in what we’re doing on the farm, and the support provided by Practical Systems is really helpful.”
Nigel says their bank manager has a good level of knowledge and respect for Cashbook Platinum.
“People who use Cashbook Platinum have really got their finger on the pulse because of the monthly Business Position Statements, which are regularly passed on to their bankers and accountants,” he says.
“The level of information we provide the bankers assists us in getting a lower lending margin because the budgets are so accurate..