The Beaver herald. [volume] (Beaver, O.T. [Okla.]) 1895-1923, 1920-01-22
prepared by the United States Depart
ment OF Agriculture)

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-operntive enterprises.
II is the desire Of the bureau TO make
the results of these investigations
available to nonco-operatlve enterpris-
es and not conilne its activities solely
TO assisting cooperative concerns.
However, due to the lnslstent demand
for assistance and advice from COOP
eratiye organizations, and the lack of
such demand from the nonco-operative
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.
poubIe-Entry Bookkeeping.
The double-entry system of book
keeping is the only one suitable for
use. as without IL there is no adequate
check on the accounts. II shows the
effects of business transactions on the
assets, liabilities, capital, surplus. and
revenue, ana also the expenses of the
business.
When the term "up-to-date methods"
Is used II does not imply complicated
methods. Only two books are abso-
intely necessary for complete syste-
matte record of the financial transac-
tions-the Journal and the ledger
though, OF course with the growth of
d concern, convenience may dictate
that the material recorded In these
two volumes be subdivlded 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-
cern must record a history of each |
members property from the time of |
delivery until payment is made. All |
this material should he 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 oe pooling,
which necessitates proratlny returns
on like grades OF fruit and oth.. prod
uce. Such records should he 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 ctIlcer should be
clearly defined, board meStiy,l should /,
be held regularly after due nUt,ce has
been given, and the laws require that I
complete records of the meetings must
he kept. In wide margin on the
Icft-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
organization funds should be
bonded. If this is an invariable prac-
tlce. lnsistcnce on bond will not he
as being prompted by any
consideration
False Economy Costly.
Many organizations are tempted to
practice false economy in regard TO
for an up-to-date account
ing system, competent help, and labor
saving devices. The cost of an adding
or n calculating machine may
seem large, but II 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
booklseeper and made modern book
keeping possible and economical.
The office, whether large or small,
should he provided with filing cabinets,
equipped with guides for indexing pur-
poses and folders TO hold the corre-
spoldence. The alphabetical filing
system Is the simplest. and perhaps