The Assets & Liabilities screen which is located under the Planning tab, and the Statement of Position, located under the Accounting tab are similar but have different functions and intended uses.
Assets & Liabilities
Primary Purpose: Tax value tracking and operational management
Key Features & Use Cases:
Tax value based: Records assets and liabilities at their tax book value, making this the go-to tool for compliance and tax reporting
Forecasting capability: Integrates directly with the Planning Grid, allowing you to forecast depreciation, loan repayments, and asset purchases/disposals throughout the financial year
Operational tracking: Ideal for day-to-day management of farm operations - tracking livestock numbers, crop inventory, machinery, vehicles, and equipment at their depreciable values
Compliance focus: Provides the foundation for tax returns and statutory reporting requirements
Historical accuracy: Maintains the depreciation schedule and tax-adjusted values that accountants need for compliance work
Statement of Position
Primary Purpose: Market value reporting and true net worth analysis
Key Features & Use Cases:
Market value based: Records all assets at their current market value, providing a true picture of farm wealth and equity
Bank reporting: Essential for loan applications, refinancing discussions, and ongoing banking covenant reporting where lenders need to see realistic security positions
Strategic decision-making: Helps farmers understand their true financial position when considering expansion, succession planning, or exit strategies
No forecasting: This is a point-in-time snapshot tool - it doesn't flow into the Planning Grid, making it purely for reporting rather than operational planning
Property & land focus: Particularly valuable for capturing the significant gap between book value and market value on farmland, which is often the largest asset on a farming balance sheet
Equity visibility: Shows true equity position for ownership transitions, partnership discussions, or generational succession planning
Which tool should I use?
Choose Assets & Liabilities when:
Client conversations focus on operational management and cashflow
You're building cashflow forecasts or scenario planning
Tax compliance and depreciation tracking are priorities
Choose Statement of Position when:
Client needs bank reporting or is approaching lenders
Discussing succession, partnership changes, or sale scenarios
True net worth and equity position are critical to the conversation
The client is growth-focused and needs to understand their capital position
Use both tools when:
You're moving a client from compliance to advisory (show them the difference between tax value and market value)
Building comprehensive advisory relationships that cover both operational forecasting and strategic positioning
Preparing for Farm Manager subscriptions where farmer visibility of true equity enhances engagement