Farm Financial Tool: Profit and Loss Budget Fact Sheet

How do I know if my business is viable?

Maintaining a sound business management discipline of measuring business performance, using this information for planning and then learning from each year’s results, will ensure a healthy and sustainable business. Understanding your profit and loss budget is essential to this process.

Key Points

• Profit and loss is the the true measure needed to determine business long-term sustainability. 
• Profitability is not the same measure as cash flow. 
• Profitability is a key measure of farm efficiency.

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GRDC Project Code AES00006

Region National, North, South, West, Overseas

• 381.60 kb Farm Financial Tool: Profit and Loss Budget Fact Sheet How do I know if my business is viable? Maintaining a sound business management discipline of measuring business performance, using this information for planning and then learning from each year’s results, will ensure a healthy and sustainable business. Understanding your profit and loss budget is essential to this process.