Perth Amboy evening news., 1918-09-14
Advises Merchants to Keep
Business Book Accounts

Daniel C. Roper, Commissioner of
Internal Revenue is sending a letter
7 TO commercial organizations, ad-
4, dressed to the Retail Merchants In
general, pointing out to them the ne
cessity for keeping book accounts.
The letter follows:
To Retail Merchants:
The Revenue ACT now pending in
Congress is expected to produce
$4,000, 900, 900. This means a tax on
the average of more than $T6 for
| every man, and child In
America. The average per family is
! nearly $340.
In many businesses taxes will be
one of the largest items of expense.
IT Is of the utmost Importance, there
fore, that every concern in business,
large or small. whether corporation.
partnership or individual. shall MAIN
tain an a record of it's receipts
and expenses. in other words. keep ac-
curate accounts. Taxes should be con-
sidered as an expense of the year for
which they are assessed rather has
FOR the year in which they are actu-
ally paid and the necessary reserves
should be provided for at once.
Because of the large amounts to
be collected, the Bureau of Internal
Revenue will be compelled to check
/ liz lilCOillt ldA FCluTDS HitQ DY YAK
payers more closely than heretofore.
The retail merchant who Is able to
place before the Internal Revenue In
spector book records showing exactly
how he arrived at his statement of
net income will greatly facilitate the
governments task Of collecting the
war revenues and save himself annoy
ance and expense.
! No special system of accounts is
| nEaaarfhAA bxs ~ $780,
Bureau but the books should show in
detail inventories. purchases. sales,
capital Investments. depreciation and
similar items required in making up
the income tax return. Every mer-
chant should study the income tax
law and regulations and see to 1t that
his accounts are kept in a manner
that will enable him TO determine his
net income for taxation
Aside from the necessity of keeping
systematic accounts In order to COM
ply with the Governments require
ments, every progressive merchant
I should adopt an apprsyed accounting
system for the good of his own bust
ness. In no other way can he further
his financial interest more effectively.
1t has been proven time and time
i again that accurate accounts are alb
~so4utely essential to success in busi-
ness. The merchant who has a good
accounting system Is able TO eliminate
waste and unnecessary expense and
can 50 control his purchases and his
credits as to greatly lessen the chance
of failure The inventory. which can
not be taken without some form Of
accounts. Is the compass of a bust
ness.
without it tho direction I'm which
the business Is heading either for sue
Cess or failure cannot be determined.
In the comlexities OF modern bust
ness costs must be calculated with
certainty in order to determine what
the selling price of an article should
be In order to yield a reasonable
profit. This Is impossible withou
books of account.
The profits Of a business or the loss
es of n business cannot be deter
mined without book records; and now
that the Nation requires every citizen
TO contribute to the war budget with
In his means and income the returns
required by the government under the
revenue laws cannot be made with
any degree of accuracy without books
OF account and annual inventories.
The bad debt loss of h Nation.
which runs into large figures annu-
ally is a tin large measure to mex
perience and inability. II merchants
would keep even the simplest books
" 61NouhA INC OdQ ucHI NdSlAEe
would pc reduced materially, for ina
bility and inexperience are usually
marked by the absence OF an account
ing system.
Owing 20 withdrawal of nan power
power fro industry IL Ia essential that
every business man be more frugal
and exert himself more effectively 20
conduct his business efficiently. Ex-
ira effort to put forth in carrying on
the business so as TO Increase volume
at less expense will decrease the
chance of failure. increase the earn
tngs OF h merchant rs a reward for
his effort. and enable him TO share
from industry II is essential that
nancial program made necessary for
the success prosecution OF the wal
The man who knows the exact con-
|dttfon of his business from day to day
has an immeasurabie advantage over
the individual who had no records
upon which 70 base his operations. II
Is the duty OF every citizen especially
In these war times 10 keep in such
close touch with hts business through
records keeping and otherwise as 70
maintain the greatest efficiency and
render to his government every cent
due In taxes
DANIEL G. ROPER.
Commissioner OF Internal Revenue.