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Tax Calendar... APRIL • Individuals file a 2018 income tax 15

return (Form 1040) and pay any tax due. If not able to file, file Form 4868 to request an automatic 6-month extension. If tax is due, it must be paid with the Form 4868. • F irst quarter estimate is due for 2019 for individuals that pay estimated taxes. •C  orporations file a 2018 calendar year tax return (Form 1120) and pay any tax due. If not able to file, file Form 7004 to request an automatic 6-month extension. • C  orporations deposit the first installment of estimated income tax for 2019.

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• Non-farm employers file Form 941 for the first quarter to report Social Security, Medicare, and withholding.

JUNE

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• S econd quarter estimate is due for 2019 for individuals that pay estimated taxes. • C  orporations deposit the second installment of estimated income tax for 2019.

JULY services to ensure the accounting job gets done correctly and consistently, while also offering management insight in annual business planning. “With the markets we’re in right now, you need to be a player — not a victim,” Zagar told producers, suggesting a financial team could help them more aggressively manage the farm’s finances. “If time is a limiting factor, focus on what you do well and focus on what you can control.”

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accrual-based accounting system. While cash-based accounting may help the operation pay the monthly bills and provide the necessary information for annual tax return preparation, accrualbased accounting provides the managerial insight needed to answer what-if scenarios and legitimate enterprise analysis.

Production output, for example, is something most producers do — and do well. On the “things you can control” list, operating costs, family living expenses and eliminating non-productive assets — including equipment and property — should all be on the table for discussion to lower break-even costs, Zagar advised.

In answering the what-if questions, Zagar said producers should create a best-case, worst-case and somewhere-in-between scenario, and the impact to break-even costs in each of the three scenarios. Doing so will help to have a contingency plan in place in the event of a major weatherrelated crop loss or a dramatic shift in market and asset values.

An outside financial services team can also address another short-fall on many farm operations — the implementation of an

Comparative balance sheets are done at the same time on an annual basis and can also help pinpoint areas of concern, according

•N  on-farm employers file Form 941 for the second quarter to report Social Security, Medicare, and withholding. • Form 5500 is due for all employers that maintain an employee benefit plan, such as a pension plan. • If not able to file, file Form 5588 to request an automatic 2.5 month extension. to Zagar, by looking at assets, liabilities and debt-to-asset trends and making adjustments before it’s too late. And in a worst-case scenario, Zagar said high-quality financial records can demonstrate to lenders and suppliers the steps you are taking to maximize your returns and remain profitable. “Being able to clearly explain your costs per unit of production and how you are making informed choices to minimize them can help attract the capital you need to fund your operation,” he said. ■ Partners — Spring 2019

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Profile for GreenStone Farm Credit Services

Partners Spring 2019  

Check out our 2019 spring edition of Partners. For more information, visit our website at www.greenstonefcs.com

Partners Spring 2019  

Check out our 2019 spring edition of Partners. For more information, visit our website at www.greenstonefcs.com