The Rathdrum tribune. (Rathdrum, Idaho) 1903-1963, 1921-12-23

"i'houl proper SyS-
TEN OF accounts is like ship without
a rudder-it may drift along and Fl.
ounoer ABOUT for time but will never
arrive at an objective point.
When we say that every business
should have proper accounting sys.
tenn we do not limit the word business
to mean the retail establishment. the
Jobber, or the manufacturer-but bu-
slness in it's broadcast sense which
covers every branch of commercial
transactions. The orchard. tbe-
the farm and the home are business
institutions, and systematic operations
or these institutions are just as es.
sential to success as are systematic
operations of the largest railroad
wholesale house, or factory.
The very foundation of your bust
ness-any business-is in knowing
what becomes of your dollar; what
you give for it and what you get for
the dollar you give. During the past
few years the big packing interests
have engaged in an extensive adyer-
Using campaign and one packing con-
Germ in particular has endeavored to
explain to the people through illus
tration what becomes of the packers
dollar
You should be able to tell from your
records at the end of each month or
at least at the end of each year, what |,
disposition has been made of the frac-
tional part of each copper cent which |
goes to make up your dollar. Let |
us take the dollar for our foundation
In the retail mercantile establishment |
there is a certain part OF that dollar |
used to pay the jobber for goods pur-
chased; there is a certain part of it |
used to pay for hired help; certain
part for rent, light and heat; cert
tain part for freight, drayage, and de-
livery; a certain part for insurance
and taxes; certain part for deprecia-
ton. But in every case in the distri-
button of that dollar there must be
certain fractional part of it come back
to the merchant, the farmer, or the or
chardist, in the shape of profits, for
otherwise the business could not for
long exist.
The dollar being apportioned among
the various channels of business, it is
of the utmost importance that a COM
plete record be kept of the distribu-
ton of each fractional part of that
dollar and the proper item of cost be
accordingly.
The incoming dollar must be like
wise properly distributed among the
channels of revenue and a
proper record kept of each dollar re-
ceived.
A simple accounting plan, it would !
then appear, would be one by which a
record is kept of all dollars received
and all dollars disbursed, ample pro-
vision of course being made for the
proper explanation as to he distribu-
lion of each incoming or outgoing dol I
ar. Such a plan would be called a +
record of receipts and disbursements j
and the difference between the money
received and money paid out would in {
iicate the profits of the business.
This plan may be looked upon by I
some as being all that is necessary
or an accounting record but assure 4
you that it is far from being complete 7
when a proper accounting system is I
eferred to. A complete system en- :
,odies more than a record of receipts :
md disbursements, for uncompleted :
must be accounted for. y
There may be monies receivable OF :
monies payable which must be con- D
idered There is overhead expense, :
and various other items >
which may enter into the various :
These items must be :
onsidered before a true statement :
f profits or losses can be obtained. .
ND