The Bemidji daily pioneer., 1919-12-19

Modern Accounting Methods
prepared by the United States Depart
ment Of Agriculture)
One Of the outstanding weaknesses
Of marketing organizations is the al
most entire lack Of up-to-date business
methods. According to the bureau Of
markets, United States department of
agriculture, which has made an extens-
i've study Of the subject, large num-
ber of failures in the cooperative field
have been traced directly or indirectly
to lack Of proper accounting systems.
Other investigations indicate that this
difficulty exists to no less an extent in
nonco-operative enterprises.
It Is the desire Of the bureau to make
the results of these investigations
available to nonco-operative enterpris-
es and not confine its activities solely
to assisting cooperative concerns.
However, due to the insistent demand
for assistance and advice from COOP
erative organizations, and the lack of
such demand from the homeopathic
field, large portion Of the work has
of necessity been confined to the FORM
er class Of organization.
An essential Of cooperative business
effort is that every participant obtain
an equitable share Of profits. With
out proper accounting there is no guar
anty that this object is attained. With
up-to-date bookkeeping none can point
the finger Of suspicion or doubt. Good
accounting promotes economy and
breeds confidence.
DoubIe.Entry Bookkeeping.
The double-entry system Of book
keeping is the only one suitable for
use, as without it there is no adequate
check on the accounts. It shows the
effects Of business transactions on the
assets, liabilities, capital, surplus, and
revenue, and also the expenses of the
business.
When the term "up-to-date methods"
ls used it does not imply complicated
methods. Only two books are abso-
lutely necessary for complete syste-
matte record of the financial transac-
dons-the journal and the ledger
though, Of course, with the growth Of
q concern, convenience may dictate
that the material recorded in these
two volumes be subdivided and en-
tered in other volumes. The journal
shows the business transactions in the
order that they occur, while the ledger
shows them classified according to the
respective accounts.
The records Of cooperative con-
Germ must record :. i. story Of each
members property re. the time Of
delivery until payn:on1 is made. All
this material should be so arranged
that the maximum volume Of business
can be cared for without confusion,
and at the same time the various de-
tails should be easily accessible.
Many cooperative organizations
have adopted the system Of pooling.
which necessitates prorating returns
on like grades of fruit and other prod
uce. Such records should be clear
as to the time of shipments, average
prices received, and awarded items.
The form Of business organization
should be as simple as possible, but
the duties Of each officer should be
clearly defined, board meetings should
be held regularly after due notice has
been given, and the laws require that
complete records Of the meetings must
be kept. In a wide margin on the
left-hand side of each page of the min
ute book notations can be made which
in the future will greatly aid in locat-
ing desired information. All persons
handling organization funds should be
bonded. If this is an invariable prac-
tice, insistence on q bond will not be
considered as being prompted by any
personal consideration.
False Economy Costly.
Many organizations are tempted to
practice false economy in regard to
expenditures for an up-to-date account
ing system, competent help, and labor
saving devices. The cost Of an adding
machine Or calculating machine may
seem large, but it may save its original
cost IN the course of year, providing
the volume of business is sufficient to
make its use economical. Columnar
development, loose-leaf systems, card
systems, and the use of carbon copies
have all lessened the routine Of the
bOOkkeeDer and made mo- en book.
Keeping possible and econooical.
The Office, whether large or small,
should be provided with filing cabinets.
equipped with guides for indexing pur-
poses and folders to hold the CORE.
spondence. The alphabetical filing
system is the simplest, and perhaps