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Occupations Qualified for Tip Deduction Released 

On September 2, 2025, the Treasury Department released a draft list of 68 occupations eligible for the new “no tax on tips” deduction. This deduction is part of the “One Big Beautiful Bill Act,” signed into law on July 4, 2025, and applies to federal income taxes for the 2025—2028 tax years.  The deduction is …

On September 2, 2025, the Treasury Department released a draft list of 68 occupations eligible for the new “no tax on tips” deduction. This deduction is part of the “One Big Beautiful Bill Act,” signed into law on July 4, 2025, and applies to federal income taxes for the 2025—2028 tax years.  

The deduction is available for a maximum of $25,000 in qualifying tips per person, per year. It is structured as a “below-the-line” deduction, meaning it is available to taxpayers who take the standard deduction, but is not used to compute adjusted gross income (AGI). 

Here is the Treasury’s draft list of occupations: 

Beverage & Food Service:  

  • Bartenders 
  • Wait staff 
  • Food servers, non-restaurant 
  • Dining room and cafeteria attendants and bartender helpers 
  • Chefs and cooks 
  • Food preparation workers 
  • Fast Food and Counter Workers 
  • Dishwashers 
  • Host staff, restaurant, lounge, and coffee shop 
  • Bakers  

 

Entertainment and Events:  

  • Gambling dealers 
  • Gambling change persons and booth cashiers 
  • Gambling cage workers 
  • Gambling and sports book writers and runners 
  • Dancers 
  • Musicians and singers 
  • Disc jockeys (except radio) 
  • Entertainers and performers 
  • Digital content creators 
  • Ushers, lobby attendants and ticket takers 
  • Locker room, coatroom and dressing room attendants  

 

Hospitality and Guest Services:  

  • Baggage porters and bellhops 
  • Concierges 
  • Hotel, motel and resort desk clerks 
  • Maids and housekeeping cleaners 

 

Home Services: 

  • Home maintenance and repair workers 
  • Home landscaping and groundskeeping workers 
  • Home electricians 
  • Home plumbers 
  • Home heating/air conditioning mechanics and installers 
  • Home appliance installers and repairers 
  • Home cleaning service workers 
  • Locksmiths 
  • Roadside assistance workers 

 

Personal Services: 

  • Personal care and service workers 
  • Private event planners 
  • Private event and portrait photographers 
  • Private event videographers 
  • Event officiants 
  • Pet caretakers 
  • Tutors 
  • Nannies and babysitters 

 

Personal Appearance and Wellness:

  • Skincare specialists 
  • Massage therapists 
  • Barbers, hairdressers, hairstylists and cosmetologists 
  • Shampooers 
  • Manicurists and pedicurists 
  • Eyebrow threading and waxing technicians 
  • Makeup artists 
  • Exercise trainers and group fitness instructors 
  • Tattoo artists and piercers 
  • Tailors 
  • Shoe and leather workers and repairers 

 

Recreation and Instruction: 

  • Golf caddies 
  • Self-enrichment teachers 
  • Recreational and tour pilots 
  • Tour guides and escorts 
  • Travel guides 
  • Sports and recreation instructors 

 

Transportation and Delivery:  

  • Parking and valet attendants 
  • Taxi and rideshare drivers and chauffeurs 
  • Shuttle drivers 
  • Goods delivery people 
  • Personal vehicle and equipment cleaners 
  • Private and charter bus drivers 
  • Water taxi operators and charter boat workers 
  • Rickshaw, pedicab, and carriage drivers 
  • Home movers  

 

The requirements for the OBBB tip exclusion are a set of temporary tax deductions for qualified tipped workers, available for tax years 2025 through 2028. The deduction is taken on an individual’s tax return and is subject to income limitations.  

 

Eligibility Requirements: To be eligible for the deduction, a worker must meet the following criteria:  

  • Be a qualified tipped worker: Must be an employee or independent contractor in an occupation that customarily and regularly received tips before 2025. See the draft list of qualifying occupations. 
  • Have qualified tips: The tips must be voluntarily paid by a customer. This includes tips received in cash, charged on a credit card, or from a tip-sharing arrangement. Mandatory service charges are not eligible. 
  • Properly report tips: The tips must be reported to the IRS on either a Form W-2 (for employees) or Form 1099 (for independent contractors). 
  • File jointly if married: If married, the couple must file a joint tax return to claim the deduction. 
  • Provide a Social Security Number (SSN):  Anyone claiming the deduction must include their SSN on their tax return.  

 

Deduction Limitations: The maximum deduction is limited and phases out for high-income earners:  

  • Maximum deduction: The maximum annual deduction is $25,000. 
  • Income phase-out: The deduction is gradually reduced for taxpayers with a modified adjusted gross income (MAGI) over a certain amount: 
  • Single filers: The deduction begins to phase out for MAGI over $150,000. 
  • Married filing jointly: The deduction begins to phase out for MAGI over $300,000.  

 

Other Considerations: 

  • Does not apply to payroll taxes: While tips are deductible from the worker’s income when figuring their federal income tax, they are still subject to Social Security and Medicare taxes or self-employment tax in the case of independent contractors. 
  • Temporary provision: The tip deduction is a temporary measure, scheduled to expire after December 31, 2028. 
  • Not tax-free: This is a deduction, not an exemption. So, the worker will still have to report all tip income, which will then be reduced by the deduction amount. 
  • State tax implications: The effect on state income taxes will depend on the worker’s state’s tax laws.  

 

In conclusion, understanding which occupations qualify for tip deductions is essential for both employees and employers seeking to maximize their tax benefits. By staying informed about the specific criteria that define qualified tips and knowing how different occupations fit into this framework, individuals can ensure compliance while optimizing their tax strategies. As tax laws continue to evolve, it remains crucial for stakeholders to stay updated on legislative changes and seek professional advice as needed to navigate the complexities of tip income and deductions effectively. 

Contact our office with questions and assistance. 

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  • 169

Understanding the Estate and Gift Tax Changes Under the One Big Beautiful Bill Act

The One Big Beautiful Bill Act (OBBBA) recently introduced substantial changes in the realm of estate and gift tax planning. These changes present new opportunities for taxpayers. The legislation modifies critical aspects of the estate tax exclusion, making long-term planning both more urgent and more strategic for affluent taxpayers. Basics of the Estate and Gift …

The One Big Beautiful Bill Act (OBBBA) recently introduced substantial changes in the realm of estate and gift tax planning. These changes present new opportunities for taxpayers. The legislation modifies critical aspects of the estate tax exclusion, making long-term planning both more urgent and more strategic for affluent taxpayers. 

Basics of the Estate and Gift Tax Exclusion: The estate and gift tax exclusion is the amount that can be excluded from federal estate tax. If the value of a decedent’s estate is less than the exclusion amount for the year of death ($13.99 million in 2025), no federal estate tax is owed and no estate tax return is required, but in some cases filing an estate tax return may still be prudent (see Benefits of the Portability Election below). 

If the value of gifts one individual gives to another person during a year is greater than that year’s annual gift tax exclusion ($19,000 for 2025), the individual making the gift must file a gift tax return (IRS Form 709), but often will owe no gift tax. This is because the gift giver can dip into their combined lifetime estate and gift tax exclusion and apply it to the excess gift amount. When the individual passes away, a reconciliation must be done to see if the combination of excess gifts and the value of the individual’s estate exceeds the lifetime estate and gift tax exclusion, which varies from year to year. This is done on IRS Form 706. 

Estate and Gift Tax Exclusions: Key Adjustments: The OBBBA has effectively “permanently” set the estate and gift tax exclusion at $15 million per individual starting in 2026, adjusted for inflation in the following years. This decision is a continuation of the trend initiated by the Tax Cuts and Jobs Act of 2017 (TCJA), which doubled the previous $5 million exclusion to $10 million, again indexed for inflation, but only through 2025. Prior to the OBBBA, the expectation was that this exclusion would drop significantly to about $7 million, essentially rolling back to the pre-TCJA levels, adjusted for inflation. However, with the OBBBA’s intervention, a more favorable scenario for high-net-worth individuals has been preserved. 

This adjustment helps taxpayers engage in more precise planning for their estates, allowing them to pass on more wealth without triggering tax obligations. It offers a level of stability and predictability that can be pivotal in both long-term estate planning and immediate asset management strategies. 

Impact on Generation-Skipping Transfers: In tandem with the estate and gift tax exclusions, the Generation-Skipping Transfer (GST) tax exclusion has also been aligned. The GST tax is a federal tax levied on transfers that skip a generation, such as from grandparents directly to grandchildren, bypassing the parents. Under OBBBA, the GST exclusion mirrors the estate and gift tax exclusion, set at $15 million from 2026 and indexed thereafter. This move curbs the potential tax-free transfer across generations, ensuring that wealth passed in such a manner is adequately taxed while still allowing for strategic planning opportunities to mitigate tax exposure. 

Benefits of the Portability Election: An often-overlooked strategy for married couples in estate planning involves the portability election, which can be particularly beneficial upon the death of the first spouse. This election allows the surviving spouse to utilize any unused portion of the deceased spouse’s estate and gift tax exclusion. By leveraging this mechanism, couples can effectively maximize the tax exclusions available to them. 

For example, if the estate of a spouse who dies in 2026 does not use their full $15 million exclusion, the remainder can transfer to the surviving spouse’s exclusion, potentially doubling the couple’s tax-free transfer capability. This process can significantly alleviate the financial burden on the surviving spouse and provide more flexibility and security in managing and distributing their estate as desired. It is an essential tool in a comprehensive estate planning strategy, particularly under the current tax environment shaped by the OBBBA. 

To take advantage of this election, the executor of the estate of the first spouse to die must file a timely Form 706, even if there is no estate tax owed. 

Strategic Implications for Wealth Management:The changes introduced by the OBBBA necessitate a fresh look at existing estate plans. Taxpayers who had previously braced themselves for a reversion to lower exclusion thresholds now have the opportunity to further leverage the increased exclusions in their planning strategies. This means reevaluating current plans to make the most of the permanent $15 million exclusion cap, aligning it with long-term financial goals and family wealth aspirations. 

For estate planning professionals, the OBBBA offers both a challenge and an opportunity. The permanence of these provisions requires planners to incorporate them into dynamic and flexible estate plans that can withstand the test of inflation, economic fluctuations, and potential future legislative changes. Deploying gifts, trusts, and other tools efficiently will be critical in optimizing these tax benefits. 

Conclusion: The estate and gift tax landscape, shaped by the One Big Beautiful Bill Act, presents complex but rewarding planning opportunities. With increased exclusions, aligned GST provisions, and the beneficial portability election, taxpayers and estate planners can navigate these waters effectively to ensure wealth preservation across generations. As such, now is an ideal time for affluent individuals to consult with their tax advisors and estate planners to reassess and optimize their strategies. 

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Uncertainty Is the New Normal: How Small Businesses Can Stay Steady 

The Economy Feels Mixed — and That’s Okay If you’ve read the headlines lately, you know the signals are…confusing. GDP is strong. Interest rates may be heading lower. Inflation is easing, but not “gone.” Tariffs are making imports more expensive. So is the economy strong? Slowing? Recovering? The truth is—it depends on who you ask. And for small business owners, …

The Economy Feels Mixed — and That’s Okay 

If you’ve read the headlines lately, you know the signals are…confusing. 

  • GDP is strong. 
  • Interest rates may be heading lower. 
  • Inflation is easing, but not “gone.” 
  • Tariffs are making imports more expensive. 

So is the economy strong? Slowing? Recovering? The truth is—it depends on who you ask. And for small business owners, that fog of uncertainty is the hardest part. 

Uncertainty isn’t just an economic headline. It’s what keeps you up at night, wondering: Do I hire? Do I wait? Do I raise prices or hold steady? 

Why Uncertainty Hurts More Than “Bad News” 

When the outlook is unpredictable, planning becomes a guessing game. You can’t control the headlines, but you can control how your business responds. That’s where steady cash flow management, flexible budgets, and advisory support change everything.  

How Small Businesses Can Adapt in Uncertain Times 

1. Get a Grip on Cash Flow 

Cash flow is your oxygen. Monitor it weekly, not quarterly. Use forecasting tools or dashboards that flag red zones before they become crises. 

2. Build Flexible Budgets 

Rigid budgets snap in unpredictable markets. Scenario planning—“what if tariffs rise another 10%?”—lets you prepare before costs hit. 

3. Diversify Where You Can 

From suppliers to revenue streams, diversification lowers risk. Even small shifts—like adding a second vendor—protect your business against shocks. 

4. Tier Your Spending Controls 

Not every dollar deserves equal treatment: 

  • Must control tightly: payroll, rent, core services. 
  • Flexible: marketing, equipment, travel. 
  • Growth bets: new hires, product launches. 

This gives you a clear plan for what to trim (and what to protect) if the ground shifts. 

Opportunity Inside the Fog 

Uncertainty doesn’t only create risk—it opens doors. When competitors freeze, you can: 

  • Negotiate better supplier terms. 
  • Attract talent that others are too hesitant to hire. 
  • Double down on client loyalty while others cut service. 

Strong planning plus calm execution turns uncertainty into opportunity. 

The Big Picture: SMB Resilience Wins 

  • Lower rates and moderating inflation could spark growth. 
  • Small business optimism remains cautiously strong. 
  • With smart financial controls, you’ll be positioned to adapt faster than competitors. 

Uncertainty isn’t going away. But with the right systems in place, it doesn’t have to run your business. 

Next Steps

Talk to our firm about building cash flow cushions, forecasting tools, and financial controls tailored to your business. With a plan in place, you’ll feel calmer, more confident, and better prepared for whatever comes next. 

Because clarity—even in uncertain times—is a competitive advantage.

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Transitioning from Traditional to Digital Accounting Systems on the Farm 

The agricultural industry is evolving, and farms are increasingly adopting digital technologies to improve efficiency, accuracy, and decision-making. One of the most significant changes many farms face is transitioning from traditional, manual accounting methods to modern digital accounting systems. This shift can transform how financial information is managed, reported, and utilized to drive business …

The agricultural industry is evolving, and farms are increasingly adopting digital technologies to improve efficiency, accuracy, and decision-making. One of the most significant changes many farms face is transitioning from traditional, manual accounting methods to modern digital accounting systems. This shift can transform how financial information is managed, reported, and utilized to drive business growth. 

 

Why Make the Switch to Digital Accounting? 

Traditional accounting often involves paper-based records, spreadsheets, and manual data entry, which can be time-consuming, error-prone, and difficult to scale. Digital accounting systems offer several advantages: 

  • Increased accuracy through automated calculations and data entry 
  • Real-time financial visibility for faster, informed decision-making 
  • Streamlined processes that save time on bookkeeping and reporting 
  • Improved compliance with tax regulations and recordkeeping requirements 
  • Better integration with other farm management tools and financial institutions 

 

Steps to a Successful Transition 

  1. Assess Your Current Processes
    Identify pain points in your current accounting system. Are you struggling with data accuracy, reporting delays, or time-consuming manual tasks? Understanding these challenges will help you select the right digital solution.
  2. Choose the Right Software
    There are numerous accounting software options tailored to agriculture, including QuickBooks, Xero, and specialized farm management platforms. Look for systems that:
    • Support your farm’s specific financial and operational needs 
    • Integrate with payroll, inventory, and tax reporting 
    • Are user-friendly for you and your staff 
  1. Plan for Data Migration
    Moving from paper or spreadsheets to digital systems requires careful data transfer. Clean and organize your existing records to avoid transferring errors. Consider professional help to ensure a smooth migration.
  2. Train Your Team
    Ensure that all users understand the new system’s features and workflows. Training reduces errors and maximizes the benefits of digital tools.
  3. Establish New Internal Controls
    Digital systems can enhance internal controls by automating approvals, audit trails, and segregation of duties. Update your policies accordingly.

 

Overcoming Common Challenges 

Transitioning to digital accounting is not without challenges: 

  • Resistance to change: Some farm staff may be hesitant. Emphasize benefits and provide support. 
  • Initial costs and setup time: Investing time and resources upfront pays off in efficiency gains. 
  • Data security concerns: Choose reputable software with strong security measures and backup capabilities. 

 

The Impact on Farm Management 

Digital accounting provides more than just improved bookkeeping. It enables farmers to: 

  • Monitor cash flow and profitability in real time 
  • Generate timely financial reports and key performance indicators 
  • Simplify tax preparation and compliance 
  • Identify cost-saving opportunities 
  • Support succession planning and long-term growth strategies 

 

How De Boer, Baumann & Company Can Support Your Transition 

De Boer, Baumann & Company helps farms navigate the complexities of moving to digital accounting. From selecting the right software and managing data migration to training your team and optimizing financial processes, our experts provide tailored support designed for agricultural operations. Partner with us to modernize your accounting system and empower your farm with better financial insight and control. 

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Compliance Considerations for Government Grants in Agriculture 

Government grants have become an important resource for agricultural producers looking to invest in equipment, technology, conservation efforts, and sustainable practices. These grants can provide critical funding that helps farms innovate and grow without incurring debt. However, receiving government grants also comes with a set of compliance requirements that must be carefully managed to …

Government grants have become an important resource for agricultural producers looking to invest in equipment, technology, conservation efforts, and sustainable practices. These grants can provide critical funding that helps farms innovate and grow without incurring debt. However, receiving government grants also comes with a set of compliance requirements that must be carefully managed to avoid penalties, repayments, or loss of future funding. 

Understanding these compliance obligations is essential for any farm or agribusiness leveraging government grant programs. 

 

Key Compliance Requirements in Agricultural Grants 

  1. Proper Use of Funds
    Grant funds must be used strictly for the purposes outlined in the grant agreement. Diverting funds to unauthorized expenses can result in grant termination and legal consequences. Farmers should establish clear budgets and track expenditures diligently.
  2. Documentation and Recordkeeping
    Comprehensive documentation is critical to demonstrate how grant funds were spent. This includes invoices, receipts, payroll records, timesheets, and progress reports. Proper recordkeeping supports audits and can be required for several years after the grant period ends.
  3. Reporting Obligations
    Most grants require periodic reporting on project progress, financial status, and outcomes. These reports must be accurate, complete, and submitted on time. Failure to comply can jeopardize current and future funding.
  4. Compliance with Federal, State, and Local Regulations
    Grant recipients must adhere to all applicable regulations, including environmental, labor, and procurement laws. For example, projects involving construction may require adherence to environmental impact assessments or local zoning laws.
  5. Audits and Monitoring
    Grant programs may include audits or site visits by grant administrators or independent auditors. Being prepared with well-maintained records and internal controls can ease the audit process and demonstrate compliance.

 

Challenges for Agricultural Grant Recipients 

  • Complexity of Requirements: Agricultural grants often come with layered compliance rules from multiple government agencies, which can be difficult to navigate. 
  • Resource Constraints: Smaller farms may lack dedicated staff to manage compliance, increasing risk. 
  • Changing Regulations: Grant requirements and regulations can evolve, requiring ongoing monitoring and adaptation. 

 

Best Practices to Maintain Compliance 

  • Develop Internal Controls: Implement controls around spending, approvals, and documentation specific to grant-funded projects. 
  • Train Staff: Ensure that employees understand grant requirements and their role in compliance. 
  • Maintain Clear Communication: Stay in contact with grant administrators and seek clarification on requirements when needed. 
  • Plan for Reporting: Set internal deadlines for data collection and reporting ahead of grant due dates. 
  • Seek Expert Assistance: Partner with accountants or advisors familiar with agricultural grants to help manage compliance. 

 

How De Boer, Baumann & Company Can Help 

De Boer, Baumann & Company offers specialized support to agricultural clients navigating the complexities of government grants. Our team assists with establishing compliant accounting practices, preparing for audits, managing reporting obligations, and advising on regulatory requirements. With a deep understanding of agricultural operations and grant compliance, we help ensure that your investment in sustainability and growth remains secure and successful. 

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Succession Planning for Multi-Generational Farms 

Running a family farm across multiple generations is both a proud tradition and a complex challenge. Succession planning—the process of preparing the farm for a smooth transition of ownership and management—is essential to ensure that the farm’s legacy endures while maintaining financial stability and operational efficiency. Whether you are in the early stages of passing …

Running a family farm across multiple generations is both a proud tradition and a complex challenge. Succession planning—the process of preparing the farm for a smooth transition of ownership and management—is essential to ensure that the farm’s legacy endures while maintaining financial stability and operational efficiency. 

Whether you are in the early stages of passing the reins or are deep in the transition process, a well-structured succession plan can help prevent family disputes, minimize tax burdens, and position the farm for long-term success. 

 

Why Succession Planning Matters 

Farms differ from many other family businesses due to their unique mix of assets, emotional ties, and regulatory complexities. Succession planning allows farm families to: 

  • Maintain business continuity despite generational change 
  • Protect family relationships by clarifying roles and expectations 
  • Manage tax liabilities related to estate, gift, and income taxes 
  • Prepare the next generation with the skills and knowledge needed to run the farm 
  • Incorporate new business models or diversify operations as needed 

Without a plan, transitions can lead to costly delays, litigation, or even the forced sale of farm assets. 

 

Key Components of a Succession Plan 

A successful succession plan typically involves the following elements: 

  1. Communication and Family Governance
    Open, honest conversations among family members lay the foundation. Establishing regular meetings and a family governance structure can help align goals and resolve conflicts early.
  2. Business Valuation and Financial Planning
    Accurate valuation of farm assets, including land, equipment, livestock, and business goodwill, is critical for equitable division and tax planning.
  3. Estate and Tax Strategies
    Working with legal and tax professionals to develop strategies that minimize estate taxes, such as gifting, trusts, or buy-sell agreements, can preserve farm assets across generations.
  4. Management and Ownership Transition
    Determining when and how ownership transfers will occur—whether gradually through gifting or via sale—is key to ensuring financial viability and operational control.
  5. Education and Mentorship
    Preparing the successor with hands-on experience, training, and leadership opportunities helps build confidence and competence.

 

Challenges to Anticipate 

  • Complex Family Dynamics: Differing visions and expectations can cause tension. Facilitated mediation or family business advisors may be needed. 
  • Changing Agricultural Markets: New market demands and technology require adaptability in the succession plan. 
  • Legal and Tax Complexity: State and federal laws evolve, making it essential to revisit and update plans regularly. 

 

The Role of Professional Advisors 

Succession planning is not a one-time event but an ongoing process. It requires coordination among accountants, attorneys, financial planners, and family members. Expert advisors help interpret laws, optimize tax outcomes, and create customized plans that reflect the family’s values and goals. 

 

How De Boer, Baumann & Company Supports Multi-Generational Farms 

De Boer, Baumann & Company brings decades of experience working with agricultural families navigating succession. Our professionals understand the unique financial, tax, and operational challenges farms face. We collaborate with your trusted legal and financial advisors to develop and update succession plans that protect your legacy while positioning your farm for future growth. 

If your farm is preparing for the next generation, reach out to learn how we can help guide your transition with confidence and clarity. 

 

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Mitigating Financial Risk in Agriculture Through Robust Internal Controls  

Agriculture is an industry marked by unique financial risks—ranging from fluctuating commodity prices to seasonal labor challenges and complex inventory management. For farmers and agribusinesses, mitigating these risks is critical to maintaining profitability and sustainability. One of the most effective ways to manage financial risk is through robust internal controls.  What Are Internal Controls? Internal controls …

Agriculture is an industry marked by unique financial risks—ranging from fluctuating commodity prices to seasonal labor challenges and complex inventory management. For farmers and agribusinesses, mitigating these risks is critical to maintaining profitability and sustainability. One of the most effective ways to manage financial risk is through robust internal controls. 

 

What Are Internal Controls? 

Internal controls are the policies, procedures, and practices designed to safeguard assets, ensure accurate financial reporting, and promote operational efficiency. They provide a framework that helps farms prevent errors, fraud, and financial mismanagement. 

 

Why Agriculture Needs Strong Internal Controls 

Farms face specific challenges that can increase financial vulnerability: 

  • Multiple revenue streams and inventory types (crops, livestock, equipment) complicate tracking. 
  • Seasonal and temporary labor can lead to inconsistent adherence to procedures. 
  • Family-run operations often have overlapping roles, reducing segregation of duties. 
  • Cash transactions at farm stands or markets may lack formal controls. 

Without effective controls, farms risk asset loss, inaccurate financial records, and regulatory noncompliance. 

 

Key Internal Controls to Consider for Your Farm 

  1. Segregation of Duties 
    Separate responsibilities so no single individual controls all aspects of a financial transaction. For example, the person authorizing payments should not reconcile bank statements. 
  2. Inventory Controls 
    Implement systems to track inventory accurately, from planting through harvest or from livestock birth to sale, reducing loss and theft. 
  3. Cash Handling Procedures 
    Establish clear policies for managing cash transactions, including issuing receipts and depositing funds promptly, especially for farm stand sales. 
  4. Bank Reconciliations 
    Perform regular reconciliations of bank statements with accounting records to detect discrepancies quickly. 
  5. Use of Technology and Cybersecurity 
    Utilize accounting software with strong security features, including password protection, two-factor authentication, and regular backups. 
  6. Documented Policies and Training 
    Maintain written procedures for financial tasks and provide training to all employees, including seasonal workers, to ensure consistent compliance. 
  7. Succession Planning Controls 
    Create clear structures for financial responsibilities during ownership transitions to maintain continuity and control. 

 

The Benefits of Strong Internal Controls 

Implementing these controls helps farms: 

  • Reduce risk of fraud and theft 
  • Ensure accurate and timely financial information 
  • Improve operational efficiency 
  • Build trust with lenders and investors 
  • Support regulatory compliance 

 

How De Boer, Baumann & Company Can Help 

De Boer, Baumann & Company has extensive experience supporting agricultural clients in developing and strengthening internal controls tailored to their operations. We work with you to identify vulnerabilities, design practical controls, and implement processes that protect your farm’s financial health and support sustainable growth. 

If you want to safeguard your farm’s finances and reduce risk, our team is here to help you build a robust internal control framework. 

 

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Streamlining Inventory and Crop Costing with Client Accounting & Advisory Services 

For agricultural producers, inventory and crop costing are two of the most essential, and often most complex, aspects of financial management. Between fluctuating input prices, unpredictable weather, and seasonal labor demands, it can be challenging to maintain accurate records and a clear understanding of profitability. That’s where client accounting and advisory services (CAAS) can …

For agricultural producers, inventory and crop costing are two of the most essential, and often most complex, aspects of financial management. Between fluctuating input prices, unpredictable weather, and seasonal labor demands, it can be challenging to maintain accurate records and a clear understanding of profitability. That’s where client accounting and advisory services (CAAS) can make a meaningful difference. 

Why Crop Costing Matters 

Crop costing is more than just tracking expenses. It’s about understanding the true cost of producing each crop or product — from seed and fertilizer to fuel, labor, equipment, and land use. When costs are accurately assigned and tracked, farm owners can evaluate profit margins, identify inefficiencies, and make informed pricing and operational decisions. 

Accurate crop costing also plays a critical role in tax planning, budgeting, and long-term strategic growth. For farms with multiple crops or income streams, a clear picture of cost per acre or per unit can highlight which areas of the operation are thriving — and which may need reevaluation. 

Challenges in Tracking Agricultural Inventory 

Unlike traditional retail or manufacturing businesses, farms deal with unique inventory challenges. Perishable products, seasonal harvests, and variable input usage can complicate inventory tracking. Inaccurate inventory data can lead to poor decision-making, cash flow issues, and compliance problems with sales tax or reporting obligations. 

Having a system in place that allows for real-time monitoring of inventory levels, input usage, and crop yields can transform how an operation is managed. With cloud-based accounting platforms and integrated tools, farms can automate many of these processes, saving time while improving accuracy. 

How Client Accounting & Advisory Services Help 

Client accounting and advisory services are designed to support businesses with day-to-day financial functions, giving owners more time to focus on operations while gaining deeper insight into financial performance. For farms, CAAS can assist with: 

  • Designing and maintaining inventory tracking systems 
  • Setting up cost centers by crop or field 
  • Preparing detailed financial reports and performance dashboards 
  • Managing payroll and subcontractor filings 
  • Reconciling financial accounts and maintaining depreciation schedules 
  • Providing software support and training for systems like QuickBooks or ag-specific platforms 

With accurate data and consistent reporting, agricultural entrepreneurs can better understand their cost structures, plan for the future, and improve profitability. 

Partnering for Success 

For farms looking to streamline operations, improve accuracy, and gain financial clarity, working with a dedicated accounting partner can be a game changer. At De Boer, Baumann & Company, our Client Accounting & Advisory Services team helps agricultural businesses establish smart systems, simplify inventory and crop costing, and make informed decisions for long-term success. 

 

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Wealth Management Considerations for Agricultural Entrepreneurs 

Running a farm is more than a business—it’s a way of life. For agricultural entrepreneurs, building wealth often means managing both personal and business finances in tandem, with much of that wealth tied up in land, equipment, and inventory. Long-term financial success requires careful planning, smart investments, and strategies tailored to the unique realities …

Running a farm is more than a business—it’s a way of life. For agricultural entrepreneurs, building wealth often means managing both personal and business finances in tandem, with much of that wealth tied up in land, equipment, and inventory. Long-term financial success requires careful planning, smart investments, and strategies tailored to the unique realities of farming. 

Here are several key wealth management considerations to help agricultural entrepreneurs preserve and grow their assets over time. 

 

Separate Business and Personal Finances 

While your farm and your livelihood may be closely linked, separating business and personal finances is essential. Not only does this make accounting and tax filing more efficient, but it also helps you better understand profitability, make informed decisions, and protect personal assets. 

  • Maintain separate bank accounts and financial records 
  • Pay yourself a consistent salary or draw 
  • Track farm income and personal expenses independently 

 

Diversify Your Investment Portfolio 

Much of a farmer’s wealth is concentrated in fixed, illiquid assets like land, equipment, or livestock. While these are valuable, they’re not easily turned into cash. To reduce risk and improve liquidity: 

  • Consider investing in off-farm assets, such as stocks, bonds, or real estate 
  • Establish retirement accounts to build long-term savings 
  • Work with an advisor to find balance between farm investments and personal financial goals 

 

Plan for Succession and Estate Transfer 

Wealth management for farmers often involves planning for the next generation. With high-value assets and complex ownership structures, it’s critical to have a clear succession plan: 

  • Decide early who will inherit or take over the business 
  • Use legal tools such as wills, trusts, and buy-sell agreements 
  • Evaluate estate tax exposure and explore strategies for minimizing liabilities 

Proper planning ensures a smoother transition and helps protect your legacy. 

 

Manage Tax Liability Strategically 

Tax planning plays a major role in wealth preservation. Agricultural entrepreneurs have access to a variety of deductions and credits, but timing and structure matter: 

  • Take advantage of Section 179 and bonus depreciation on equipment purchases 
  • Use income averaging to stabilize tax obligations 
  • Explore entity structuring (e.g., LLC, S Corp) to optimize tax treatment 
  • Work with a CPA to stay ahead of changes in farm tax law 

 

Protect What You’ve Built 

Unexpected events—like market swings, weather disasters, or health issues—can disrupt even the strongest farm operations. A good wealth management plan includes risk mitigation through: 

  • Crop and revenue insurance 
  • Adequate liability and property coverage 
  • Disability and life insurance for key individuals 
  • Long-term care and health insurance planning 

 

Partner with the Right Advisors 

Managing agricultural wealth is a long-term process that benefits from professional insight. CPAs, financial planners, and estate attorneys with experience in farming operations can help you: 

  • Create customized investment and savings plans 
  • Evaluate your full financial picture 
  • Plan for major purchases, retirement, and generational wealth transfer 

 

Supporting Your Financial Future 

At De Boer, Baumann & Company, we understand the financial landscape agricultural entrepreneurs face—from volatile cash flow to complex succession needs. Our experienced advisors help you plan strategically so you can protect your farm, your family, and your future. 

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Managing Seasonal Cash Flow Fluctuations in Farming 

Farming is a business of cycles. With planting, growing, harvesting, and selling seasons spread across the year, cash flow often fluctuates dramatically. Managing these ups and downs is critical to keeping your operation running smoothly and ensuring you have the resources to cover expenses year-round. Understanding how to plan for and manage seasonal cash flow …

Farming is a business of cycles. With planting, growing, harvesting, and selling seasons spread across the year, cash flow often fluctuates dramatically. Managing these ups and downs is critical to keeping your operation running smoothly and ensuring you have the resources to cover expenses year-round. 

Understanding how to plan for and manage seasonal cash flow fluctuations can make the difference between thriving and struggling through the year. 

 

Why Cash Flow Fluctuations Are Common in Farming 

Unlike many businesses with steady monthly revenue, farms often experience: 

  • Periods of high expenses before any income is generated (e.g., purchasing seed, fertilizer, or livestock feed) 
  • Large income spikes after harvest or livestock sales 
  • Variable market prices affecting income timing and amounts 
  • Seasonal labor costs tied to planting and harvesting cycles 

Without careful planning, these fluctuations can create cash shortages, missed payments, and financial stress. 

 

Strategies to Manage Seasonal Cash Flow in Farming 

  1. Develop a Year-Round Cash Flow Budget

    Create a detailed monthly cash flow projection, estimating all income and expenses throughout the year. This helps identify months when cash shortages may occur and allows you to plan accordingly.

  2. Build and Maintain a Cash Reserve

    Aim to set aside funds during peak income months to cover expenses during lean periods. A cash reserve can provide a financial cushion and reduce reliance on credit.

  3. Manage Accounts Payable and Receivable

    Negotiate payment terms with suppliers and customers to better align cash inflows and outflows. For example, extending payables while encouraging timely receivables can ease short-term pressure.

  4. Use Short-Term Financing Wisely

    Lines of credit or seasonal loans can help bridge cash gaps, but use them carefully to avoid high-interest costs. Plan repayments during high-income months.

  5. Monitor Inventory and Input Costs

    Track how much you spend on inputs and avoid over-purchasing early in the season. Efficient inventory management reduces tied-up cash and waste.

  6. Explore Alternative Revenue Streams

    Diversifying income sources—such as agritourism, direct sales, or value-added products—can help smooth cash flow throughout the year.

 

The Importance of Regular Financial Review 

Cash flow management is not a one-time task. Regularly reviewing your cash flow projections and actual results allows you to adjust your plans, identify issues early, and seize opportunities. 

Working with a trusted advisor can bring fresh insights and help you optimize your finances in line with your farm’s unique rhythms. 

 

How DBC Helps Farms Navigate Cash Flow Challenges 

At De Boer, Baumann & Company, we specialize in helping agricultural clients manage the complexities of seasonal cash flow. From budgeting to financing strategies, our team provides tailored advice that supports your farm’s stability and growth. 

 

 

About us

De Boer, Baumann & Company provides professional accounting, tax, and business advisory services to individuals and businesses in West Michigan and the surrounding areas. With expertise in a variety of industries, DBC specializes in comprehensive and innovative solutions to help clients achieve their financial goals.