The public ledger. [volume] (Maysville, Ky.) 1913-1968, 1918-09-28
SOME REASONS WHY EVERY RE-
TAN MERCHANT SHOULD
KEEP BOOK ACCOUNTS


A general letter addressed to retail
merchants by the Commissioner of In
ternal Revenue pointing out the ne
cessity for keeping accounts follows
The Revenue Act now pending in
Congress is expected to produce 49,
900 100000 This means a tax on the
average of more than $76 for every
man, woman and child in America,
The average per family is nearly $940.
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 exact record of its receipts
and expenses in other words, shall
keep accurate accounts. Because of
the amount to be collected, the Blu
reau of Internal Revenue will be COM
PEELED to check the income tax returns
by taxpayers more closely than here
tofore. The retail merchant records
showing exactly how he arrived at
this statement of net income Will
greatly facilitate the Governments
task of collecting the war revenues
and save himself annoyance and ex-
pense.
No special system of accounts is
prescribed by the Internal Revenue
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 it that
his accounts are kept in manner
that will enable him to determine his
net income for taxation purposes.
Aside from the necessity of keeping
systematic accounts in order to COM
ply with the Governments require
ments, every progressive merchant
should adopt an approved accounting
system for the good of his own bust
ness. The merchants who has a good
accounting system is able to elimi-
nate waste and unnecessary expense
and can so control his purchases and
his credits as to greatly lessen the
chance of failure The inventory,
which cannot be taken without some
form of accounts, is the compass of
business. Without it the direction in
which the business is heading either
for success or failure cannot be de-
termined.
In the complexities 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 prof
it. This is impossible without books
of accounts.
The profits of a business or the
losses of a 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 of the Nation which
runs into large figures annually is
due in a large measure to inexper-
fence and inability. If merchants
would keep even the simplest books
of accounts the bad debt wastage
would be reduced materially, for in
ability and inexperience are usually
marked by the absence of an account
ing system.
Owing to the withdrawal of man
power from industry it is essential
that every business man be more fru-
gtl and exert himself more effective
ly to conduct his business efficiently.
Extra effort put forth in carrying on