Contract Milking Monthly cashflow budget

NOTE:
This workbook contains (as per sheet tabs):
- Milk Income worksheet to enter monthly milksolids income Red triangles, in the corners of cells,
indicate further instructions. Hover
- Annual Cash Budget your mouse over the cell to reveal
- Sensitivity Table the tip.
- Forecast Budget worksheet for one season
- Monthly Actuals worksheet to record actual income & expenses against your budget This workbook has been locked, if
you want to unlock the cells use the
- Detailed Expense Sheet password 'budget' to unprotect the
- Graphs sheet

- Helpful Tips

Step 1 - Milk income

Ÿ Enter your monthly milksolids sold and your fixed $/kgMS as agreed in your contract with the Farm Owner, use the GST exclusive figure as the
template will add GST to your income in step 4. Remember that you get paid in the month following the production eg July milk gets paid in August.
Instructions on the worksheet.

Step 2 - Annual Cash Budget

Ÿ Cash budget for one season calculating a cash surplus or deficit
Ÿ Complete the Farm details at the top of the budget as well as your share of milk income
Ÿ These are cash budgets but to estimate tax you may need to consider depreciation if you have depreciating assets, see the formula for
estimating tax at the bottom of the Annual Cash Budget.

Step 3 - Sensitivity Table

Ÿ The sensitivity table automatically calculates changes to the cash surplus (or deficit) from the Annual Cash Budget.

Step 4 - Forecast Budget

Ÿ Monthly cashflow budget for one season
Ÿ As you fill in expenses and income across the season the "Check column" will show how many more dollars need to be allocated
Ÿ Formulas are in place to spread milk income across the season but these may be typed over
ŸŸ Remember to enter your opening bank balance in June and your overdraft interest rate.

Step 5 - Monthly Actuals

Ÿ When your forecast budget is complete, enter actual expenses and income in this workbook
Ÿ Each month (and year-to-date) has a variance column to see how close actual figures are to the budgeted ones

Detailed Expense Sheet

Ÿ You can use the this worksheet to calculate your expenses in greater detail. This worksheet does not automatically update the Annual Cash Budget
sheet. However you can link the sheets if you wish to.

Graphs Sheet
Ÿ This sheet contains three graphs for viewing:
- Pie graphs of farm working expenses
- Column graph of monthly farm working budget vs. actual expenses
- Line graph with closing bank balance

Helpful Tips
Ÿ Some additional help for getting the most out of the budgets and troubleshooting
Ÿ If you need further help contact 0800 4 DAIRYNZ
 Milksolids cashflow

INSTRUCTIONS: Fill in the yellow boxes. The total payments for each month (row 12) link to Step 4 - Forecast Budget.

Contractor Rate per kgMS (exclusive of GST)

Production Month June July August September October November December January February March April May Season Total

Milksolids sold -

Cumulative production 0 0 0 0 0 0 0 0 0 0 0 0

Your Total $ $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $0
Annual Cash Budget
Name: Budget Period to

Farm Details: 0 kgMS cows ha kgMS/cow kgMS/ha cows/ha

Income $ Total $/kgMS $/cow $/ha

Dairy Cash Income Contractor Rate per kgMS $0.00
Milksolids total 0 kgMS x $ #DIV/0! /kgMS $0
Other dairy income (incurring GST) e.g.colostrum, Calf Rearing Fee
Livestock income (sales less purchases)
Net Dairy Income $0 $0.00 $0 $0
Other tax paid income e.g. off-farm salaries or wages (no GST)
contracting
Other income
Total Income $0 $0.00 $0 $0

Use the Detailed Expense Worksheet if you prefer a greater level of detail, this will not update the expenses below
Expenses $ Total $/kgMs $/cow $/ha
Wages
Farm dairy
Electricity (farm dairy)
Vehicles and fuel
R&M (plant, machinery)
Protective Clothing
General farm expenses
Administration e.g. accountant, consultant, phone
Insurance
ACC
Other expenses
Other expenses
Other expenses
Total Farm Working Expenses $0 $0.00 $0 $0
Overdraft Interest $0
Hire Purchase Payments (motorbikes, vehicles)
Interest
Principal
Tax * Ask accountant or see estimate formula below
Drawings
Capital transactions (purchases less sales e.g. vehicles, machinery)
Total Expenses $0 $0.00 $0 $0
Click here to view a pie chart of Total Expenses
Cash Surplus / Deficit $0 $0.00 $0 $0

* Estimating Tax
Taxable profit / loss = Total Income - FWE - interest - depreciation
Estimated tax payment / refund = Taxable profit / loss x estimated tax rate
Ask your accountant as this is an estimate only. It does not allow for other adjustments e.g. livestock valuation.
Cash surplus / deficit sensitivity table

Production
-10% -5% 0 5% 10%

-10%
Farm working

#DIV/0! #DIV/0! 0 #DIV/0! #DIV/0!

expenses

-5%
#DIV/0! #DIV/0! 0 #DIV/0! #DIV/0!

0
#DIV/0! #DIV/0! 0 #DIV/0! #DIV/0!

5%
#DIV/0! #DIV/0! 0 #DIV/0! #DIV/0!

10%
#DIV/0! #DIV/0! 0 #DIV/0! #DIV/0!

Based on Annual Cash Budget changes to FWEs and production. Table displays Cash surplus or deficit
scenarios. Tax is not taken into account and will vary.
 Monthly Cashflow Budget
Name: 0 Budget period 30/12/1899 to 30/12/1899

Farm details: 0 kgMS 0 cows 0.0 ha kgMS/cow kgMS/ha cows/ha

Annual Total $ June July August September October November December January February March April May
Income Check
Budget column Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget

Dairy Cash Income Contractor Rate per kgMS $0.00

Milksolids total 0 kgMS x $ #DIV/0! /kgMS $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Other dairy income (incurring GST) e.g.colostrum, Calf Rearing Fee $0 $0

Livestock income (sales less purchases) $0

Net Dairy Cash Income $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Other tax paid income e.g. off-farm salaries or wages $0 $0

contracting $0 $0

Other income $0 $0

GST on income 15% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total Income $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Expenses

Wages $0 $0

Farm dairy $0 $0

Electricity (farm dairy) $0 $0

Vehicles and fuel $0 $0

R&M (plant, machinery) $0 $0

Protective Clothing $0 $0

General farm expenses $0 $0

Administration e.g. accountant, consultant, phone $0 $0

Insurance $0 $0

ACC $0 $0

Other expenses $0 $0

Other expenses $0 $0

Other expenses $0 $0

Total Farm Working Expenses $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Overdraft Interest $0 $0 - - - - - - - - - - -

Hire Purchase Payments (motorbikes, vehicles) $0 $0

Interest $0 $0

Principal $0 $0

Tax * Ask accountant or see estimate formula below $0 $0

Drawings $0 $0

Capital transactions with GST (e.g. machinery) $0 $0

GST on expenses $0 - - - - - - - - - - - -

GST payment / (refund) $0 - - - - -

Total Expenses $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Cash Surplus/Deficit $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Opening bank balance $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Closing bank balance $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

* Estimating Tax
Taxable profit / loss = Total Income - FWE - other expenses - rent - interest - depreciation
Estimated tax payment / refund = Taxable profit / loss x estimated tax rate
Ask your accountant as this is an estimate only. It does not allow for other adjustments e.g. livestock valuation.
 Monthly Cashflow Budget
Name: 0 Budget period 30/12/1899 to 30/12/1899

Farm details: 0 kgMS 0 cows 0.0 ha kgMS/cow kgMS/ha cows/ha

Annual Total $ June July August September October

Income
Budget Actual Variance Budget Actual Variance Budget Actual Variance Budget Actual Variance Budget Actual Variance Budget Actual

Dairy Cash Income

Milksolids total 0 kgMS x $ #DIV/0! /kgMS $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Other dairy income (incurring GST) e.g.colostrum, calf rearing fee $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Livestock income (sales less purchases) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Net Dairy Cash Income $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Other tax paid income e.g. off-farm salaries or wages $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

contracting $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Other income $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

GST on income 15% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total Income $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Expenses

Wages $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Farm dairy $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Electricity (farm dairy) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Vehicles and fuel $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

R&M (plant, machinery) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Protective Clothing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

General farm expenses $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Administration e.g. accountant, consultant, phone $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Insurance $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

ACC $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Other expenses $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Other expenses $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Other expenses $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total Farm Working Expenses $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Overdraft Interest $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Hire Purchase Payments (motorbikes, vehicles) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Interest $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Principal $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Tax * Ask accountant or see estimate formula below $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Drawings $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Capital transactions with GST (e.g. machinery) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

GST on expenses $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

GST payment / (refund) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total Expenses $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Click here to view a column graph of Monthly Total Budget vs. Actual Expenses

Cash Surplus/Deficit $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Opening bank balance $0 $0 $0 $0 $0 $0 $0

0

Closing bank balance $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Click here to view a line graph of the Closing Bank Balance (Budget vs. Actual)
* Estimating Tax
Taxable profit / loss = Total Income - FWE - other expenses - rent - interest - depreciation
Estimated tax payment / refund = Taxable profit / loss x estimated tax rate
Ask your accountant as this is an estimate only. It does not allow for other adjustments e.g. livestock valuation .
October November December January February March April May
Variance Budget Actual Variance Budget Actual Variance Budget Actual Variance Budget Actual Variance Budget Actual Variance Budget Actual Variance Budget Actual Variance

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
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$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
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$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

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$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Detail Expense Worksheet
NOTE: These figures won't transfer to the Annual Cash Budget.
Expenses Calculations
$ Total Comments
Wages Weekly rate $ x no. Weeks
Fulltime $0
Relief milker $0
Casual worker $0
0 $0
$0
Farm Dairy Enter item x quantity or totals
Rubberware $0
Detergents $0
$0
$0
$0
Vehicles & fuel Enter item x quantity or totals
Bike maintenance $0
Ute maintenance $0
Petrol $0
WOFs, regos and Road User Charges $0
$0
R&M (plant, machinery) Enter item x quantity or totals
Milk plant maintenance $0
General plant repairs $0
Tools $0
Temporary fencing gear $0
$0
$0
General farm expenses Enter item x quantity or totals
Consumables eg coffee, tea for cowshed $0
Dog and horse feed $0
$0
$0
$0
$0
Administration Enter item x quantity or totals
Accountant $0
Farm consultant $0
Phone / communication $0
Lawyer $0
Postage $0
Newspapers / stationery $0
Training Fees $0
HR $0
Bank Charges $0
$0
$0
Graphs Worksheet

Total working expenses

Budgeted % of total expenses

Monthly Total Budget vs. Actual Expenses

Total Expenses

Budget Actual
$1
$1
$1
$1
$1
$1
$0
$0
$0
$0
$0

$0

$0

$0

$0

$0

$0
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$0
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Closing Bank Balance

Budget Actual
$1
$1
$1
$1
$1
$1
$0
$0
$0
$0
$0
June July August September October November December January February March April May
Tips & Tricks

Hints for the Forecast budget

Ÿ The password for the workbook is "budget". You may change names or add rows. Warning: adding lines may affect calculations!

Types of Income
Ÿ Dairy Income and Other types of income are split in the budget so the Dairy Operation may be analysed on its own.
Ÿ See your accountant if you need to clarify a type of income and whether tax has been paid or needs to be accounted for.
Ÿ If you have stock income such as calf sales, stock lease income, add it in here. Deduct any stock purchases off the total income
Ÿ "Other Dairy Income incurring GST" will have GST calculated in the forecast budget (Step 4).E.g. Colostrum, Calf Rearing Fee.
Ÿ "Other tax paid Income" is excluded from GST calculations in the forecast budget. E.g. off-farm salaries & wages, inheritance, income equalisation
Ÿ "Other Income " allows you to add in further income sources, these will have GST calculated in the forecast budget. E.g. Contracting

Forecast Budget
Ÿ Put an Overdraft interest rate in yellow box in the expenses section of the cashflow page. The total will appear in the annual column.
Ÿ Remember to put your opening bank balance into the forecast budget for June
Ÿ The program is for 2 monthly GST reporting. If you are on six monthly, it can be changed. Please contact DairyNZ
Ÿ April/May GST is paid (or refunded) in June. An estimate of this figure needs to be recorded manually in June as directed
Ÿ This template is a simple way to develop a budget, if you have other software (e.g. Cashmanager Rural) it will help you track easily during the season.

Capital Transactions
Ÿ Some capital transactions require GST and others, such as shares, do not. Check with your accountant.
Ÿ Capital transactions entered in the Annual Budget page will go into GST transactions in the forecast budget (Step 4) and have 15% GST added

Monthly Actuals
Ÿ If you are using Cashmanager Rural, Xero or Banklink consider entering your forecast budget into these programmes for monthly tracking.

Extra tips
Ÿ Copy any of the budget sheets by right-clicking on the tab and selecting move or copy, click copy and move to the end of the workbook
Ÿ If you want to test scenarios or budget for more seasons try saving the spreadsheet with a different name so you don’t lose the figures in this one