For many families, handing over “the books” comes late in the journey. One generation keeps control until their 60s, and by the time the kids are finally brought in, it can feel like being thrown in the deep end. Worse still, along with the responsibility, the next generation often inherits years of habits, shortcuts, and mistakes that make the transition harder than it needs to be.
The good news? Families who’ve walked this path before have left a trail of lessons worth following. Here’s how to set up the next generation to succeed and what to avoid along the way.
1. Bring the next generation in earlier
Waiting too long to share the financial side of the farm is one of the most common regrets. Many parents think it’s easier to keep control or assume their kids aren’t ready, but the longer the delay, the steeper the learning curve.
When the books are kept in the hands of just one person for decades, everyone else is left in the dark. If that person suddenly steps back or becomes unavailable, the whole business can grind to a halt.
The lesson: Get your kids involved early, even in their 20s. Start small with coding expenses, helping with budgets, sitting in on financial meetings and build from there. That way, knowledge is shared gradually, not dumped all at once.
2. Don’t let taxes dictate the future
Tax planning is important, but when minimising tax becomes the only goal, it can create long-term headaches. Families often discover that decisions made years earlier to reduce taxes have tied up assets in complex structures that make succession messy and costly.
Similarly, some businesses treat the books purely as a way to keep the tax office happy. The result? Records that tick compliance boxes but offer little value for day-to-day decision-making.
The lesson: Think beyond compliance. Yes, manage tax efficiently, but also prepare budgets, forecasts, and reports that give a forward-looking view of the farm. Good financial systems should serve the business today and make succession easier tomorrow.
3. Put structure around money
Few things stir up family conflict like money. When everyone is simply dipping into the farm account as needed, expectations blur and resentment festers. Some feel they’re working harder than others. Others feel unsupported. Without structure, succession conversations can quickly turn personal.
On top of that, personal and business finances often end up mixed together. While it might seem harmless at the time, it creates confusion later and muddies both reporting and tax compliance.
The lesson: Pay family members a salary with a job description. Keep personal and business accounts separate. Treat farm roles with the same transparency and fairness as you would any other workplace. These systems may feel formal at first, but they keep family relationships healthier in the long run.
4. Use technology to support collaboration
Inheriting the books often means inheriting the way things were done in the past, spreadsheets passed around, files stored on one computer, or a single person holding the keys to the system.
That approach doesn’t just slow things down, it increases risk. If only one person knows how the finances are run, the farm becomes vulnerable.
The lesson: Build collaboration into your systems. Make sure more than one person can confidently access and manage the records. Use tools that allow structured access for co-workers, family, and advisors, so everyone who needs the information can get it without relying on one gatekeeper.
It's not just handing over the books
At its best, succession is not a single event but a gradual, thoughtful process. By involving the next generation early, creating clear structures, and avoiding common pitfalls, you can ensure the farm is not only passed on but set up to thrive.
Succession is never simple, but it doesn’t have to be stressful. With the right systems and mindset, the books you hand over can be a foundation for growth.
