The Pioche record. [volume] (Pioche, Nev.) 1908-1925, 1920-01-16
prepared by the United States Depart
ment of Agriculture.)

Modern Accounting Methods 4
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-
Der 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 |
homeopathic enterprises.
1t is the desire of the bureau TO make |
the results of these investigations |
available to homeopathic enterpris- |
eS and not cOnfine it's 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
err 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. 1t shows the
effects of business transactions on the
assets liabilities, capital, surplus, and
revenue, anti also the expenses of the
business.
When the term "up-to-date methods"
is used it does not imply complicated
methods. Only two books are abso-
lutely necessary for complete syste
matte record of the financial transac-
tions-the journal and the ledger
though, Of course with the growth of
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 a cooperative con-
Germ must record history of each
members property from the time Of
delivery until payment 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 mus
be kept. In a wide margin on thu
left-hand side of each page of the min
ate book notations can be made whicl
in the future will greatly aid in locat
ing desired information. All person!
handling organization funds should b.
bonded. If this is an invariable prac
tice, insistence on bond will not b.
considered as being prompted by an,
personal consideration.
False Economy Costly.
Many organizations are tempted t
practice false economy in regard t
expenditures for an up-to-date account
ing system, competent help, and labor
saving devices The cost of an addin
machine or calculating machine ma
seem large, but it may save it's Origins
cost in the course of year, providin
the volume of business is sufficient
make its use economical. Columna
development, loose-leaf systems, car
systems, and the use Of carbon copie
have all leSSened the routine or tn
bookkeeper and made modern bool
keeping possible and economical.
The office, whether large or SINAI
should be provided with filing cabinet
equipped with guides for indexing pu
poses and folders to hold the corr
spOndence. The alphabetical filiI
system Is the simplest, and perhaI