The mirror. (Stillwater, Minn.) 1894-1925, 1917-08-09

QudUc uloouOO VI kocpluS tuo DOOkS
A great many failures could have
been turned into successes had the
proprietors known the exact condi-
tions in time SO as to have been
able to follow the course which
would have averted disaster. The
proprietor must know what to ac-
complish and what he possesses
with which to gain his end in Or
der that he may plan sagaciously.
No business man can know what
the condition of his business is
without means of ascertaining it.
The only means by which an au-
thentic statement of the business
can be had is the systematic, un-
derstandable record of it's activity.
Many systems fall short of their
purpose for the reason that too
much unnecessary labor must be
performed in order to obtain the
desired results. Others fail be-
cause they are not all-inclusive.
They do not permit the considera-
tion of all the details of the busi-
ness and so the final results OBJ
tanned through their use are not
complete. Now an incorrect state
ment of the condition of a business
can not be described as worthless.
1t is worse than worthless. Per-
nicious begins to describe it. An
incorrect statement is bound to
lead the man astray who bases bis
actions upon the results shown
Unknowingly he will not act right
if he follows plan based upon a
false report. Believing the report
to be correct his plans are not the
same as they would be if he knew
it was wrong.
Obviously then, the system OF
accounting to be employed must be
the one embodying certain essen
tials. First, it must be so con-
structed as to reduce the possibility
of fraud to the minimum and yet
so as to be easily checked to detect
fraud. Second, it must be so con-
structed that the liability of error
is reduced to the smallest possible
amount and to be easily checked
for the discovery Of such errors as
may slip in. Third, it must be sc
arranged that ALL the details of the
business may be included with the
expenditure of the LEAST amount
of effort on the part of the book
keeper. Fourth, it must be sc
constructed as to bridge the gull
between costs and sales with de.
tailed information covering all the
items that make up overhead ex.
pense; for without knowing what
items of expenditure are purely
overhead expense and the tota.
amount of each item covering 6
certain period the proprietor car
never be sure that he is adding the
right percentage to the cost of biz
wares to insure safety. He may
be adding too little and therefore
suffering loss; or he may be add
ing too much and is therefore no
able to compete. In short, tn.
system of accounting employed
must be such as will unreservedly
inform the proprietor of his exac
business status at whatever tim,
he wants to know, which should b,
always.
In evolving a system of account
ing then, there are many things t,
be considered. The systematizel
must of course consider the class O
business. It can be readily under
stood that the system best adapted
to a manufacturer of furniture can
not be used by the retail grocer
even though the same principle un
derlies both, because of the differ
ence in the conduct of business
So after considering the busines
of the particular grocer or manu-
facturer or any business persol