Yeo & Yeo is pleased to announce that Eric J. Sowatsky, CPA, CGMA, has completed the Mark-to-Market Grain Accounting course administered by White Commercial Corporation. The specialty course concentrates on proper accounting procedures for grain elevators, with an emphasis on mark-to-market valuations of cash grain and futures contracts.
Sowatsky has a high-level understanding of how basis trading activities flow through a grain elevator’s financial statement, from both the merchandising perspective and the accounting perspective. Mark-to-market valuations on cash grain positions can be made in different ways, and each has a different effect on an elevator’s financial statement.
“Grain elevators use their financial statements to effectively report, manage and strengthen the financial health of the business, so it is important to be able to present the company’s financials clearly and confidently to a lender, board members and other interested parties,” says Sowatsky.
Sowatsky consults with grain elevators about basis trading, spreads and market values, as well as how to accurately value and report grain inventory and forward contracts. He emphasizes the importance of compiling financial statements on a monthly basis with proper mark-to-market entries, so clients understand not only what the numbers are, but what they mean.
Sowatsky is the leader of Yeo & Yeo’s Agribusiness Services Team, and a member of the State and Local Tax Team and healthcare Reform Team. He serves on the Michigan Agribusiness Association’s Grain Committee. His areas of expertise include collateral audit exams for lending institutions, internal control reviews, business consulting, financial reporting and tax planning issues, with an emphasis in agribusiness.
Sowatsky has more than 12 years of public accounting experience and is a senior manager in the firm’s Saginaw office. He is past president of the Great Lakes Bay Economic Club and past treasurer of Rotary Club – Saginaw Sunrise.