Most farmers judge their accountant by one number: how little tax they paid. But is that the right measure? In Episode 14 of the Your Farm Business Podcast, host Tom Moir sits down with Mike Krause, founder and CEO of P2P Agri, to unpack the relationship between farmers and their accountants, and the assumptions that can quietly cost you.

Drawing on a consulting career spanning 200-plus farms, Mike explains what really motivates an accountant (protecting their ATO accreditation and minimising your tax, not necessarily growing your profit), and shares the moment that opened his eyes: a farmer who'd posted five straight years of losses, whose accountant never mentioned it because "that's not my role."

It's an honest look at where accountants add real value, where farmers expect too much, and why sometimes paying a bit more tax is the smartest decision you can make.

WHAT YOU'LL LEARN:

• The two things that actually motivate your accountant, and why they're conservative by design
• Why your tax numbers and your bank numbers are not the same (and the 1966 land value still on the balance sheet)
• The "$1.2M header trap": how chasing a tax deduction can leave you exposed in a drought
• Tax strategies farmers often overlook: FMDs, prepaying inputs, machinery timing, business structures
• Why more trusts and structures mean more tax returns, and more fees
• How to set up a chart of accounts that works for you, not just the ATO
• Why government incentives and depreciation write-offs shouldn't drive your decisions
• How to work with your accountant year-round, not just at tax time
• Where AI may take tax and accounting in the next five to ten years

CHAPTERS:

0:00 Welcome 
01:20 Mike as "a farmer's accountant" 
02:31 The accountant's perspective: two motivations 
07:19 Don't assume your accountant sees the whole picture 
08:25 Balancing tax minimisation with long-term growth 
10:58 Do farmers expect too much? (Accountants make mistakes too) 
13:22 Tax numbers vs bank numbers: why they differ 
16:09 The $1.2M header trap: when minimising tax backfires 
18:48 Tax strategies farmers often overlook 
22:26 Record keeping, technology & your chart of accounts 
25:54 Government incentives & changing tax laws 
28:43 How to work with your accountant year-round 
30:35 The big myth about farmers and accountants 
32:05 The future: AI and the accountant 
35:11 How the P2P Agri software fits with banks & accountants 
38:24 Closing thoughts

ABOUT THE GUEST:

Mike Krause is the CEO and founder of P2P Agri, an Australian software and training business that helps farmers analyse profitability, model "what-if" scenarios, plan succession and make confident long-term decisions. P2P Agri delivers training one-on-one and in partnership with TOCAL Ag College in NSW.

LINKS & RESOURCES:

• P2P Agri (free demo & Essentials tier): https://p2pagri.com.au
• Plan to Profit financial literacy course (search "plan to profit tocal")
• "Farming the Business" by Mike Krause (GRDC)

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Learn more about P2P Agri: https://p2pagri.com.au