South Bend news-times. (South Bend, Ind.) 1913-1938, 1922-07-03

slcians. In view OF the fact that
L. NJ. Hurley in his report as chair
man OF the federal trade commission
for the year 1916 made the state
ment that 90 per cent OF the bust
ness failures were due 10 the lack
OF proper information relative 10
their business Ga lack of account
ing. or improper Accounting bust
ness men are now beginning 70
realize that they should give some
attention TO the securing or proper
facts relative 70 their business, for
knowledge IS power.
At the present time there IS
national association called the Amer
lean Institute OF Accountants who
have been endeavoring 10 hold up
the high standard Of the profession
and 10 encourage legislation for the
betterment Of business in general
This national association has been
holding examinations twice a year
in practically every state in the un-
ion for the G. 2. \. degree. Many
Of the 1000 public accounting firms
who are practicing in the United
States are not certified and many OF
those who are certified were certi-
fed when the c. =. A. laws or the
various states were passed, securing
their degree by the Waiver act-that
is. the fling of an affidavit OF char
acter, and the statement that they
have been an accountant for a Ger
tain period OF time.
on January first Of this year there
we're three hundred and eighty-one
c. p A. certificates issued in the
state of Indiana. one hundred and
twenty-one Of these being issued as
She result Of written examinations.
However since the various states
have now in effect c. p. A laws and
the fact that it is now Impossible 10
secure the degree Of G. p. 4. except
by written examination such exam
nations being held i'm the majority
of the states by the national asso-
citation, the standard OF those who
will practice in the future will nat
/ urally be somewhat higher than
many OF those who have been prac-
ticing under the degree issued by
the various state boards when the
! c. p. A. laws was first enacted.
I In the early days an accountant
was spoken of sarcastically as a
.bookkeeper out Of a job Unfor-
tunately even today there are so
| called accountants who deserve
this characterization Under the
present status OF the laws. there =
nothing 10 prevent a person, with
out a shadow Of knowledge Of either
bookkeeping or accounting. from
setting up an Office and calling HIM
self a public accountant" or an
auditor" We have often met with
the statement from new client.
that he hasn't much use for audi
tons" later developments proving
that he has had the misfortune 20
! become entangIed with one OF these
"quacks" Of the accounting profes-
sion All that can be said IN such
| cases is that the client has not YET
dealt with a real accountant.
\ real accountant does more than
prepare balance sheets and pront
and loss statements. He ascertains
/ the reasons for the ups ana
/ downs in business and acts as Il
business diagnost.clan. on the other
! hand. II you would suggest 20 bust
ness man who has employed a real
accountant that he make a change.
J YOU would bring forth an emphate
refusal 20 even discuss the subject
The objects OF accounting science
are the accurate determination OF
! the exact condition OF the business
AZ a stated time. the determination
. OF the true earnings for a given per
| iod. the devising OF ways and inca rs
10 increase the profits, the discovery
and stoppage % leaks and wastaEe.
and the creation Of better methods
! in production. marketing and g.
! nance. The accountant must have
the analytical faculty highly deve,-
oped. must be able 20 concentrate
on the complex problems that crop
up In his practice. distinguish be-
tween relatively important and IN
important items. and set out each
part OF the business under examine
| ton in its proper relation 20 the
| whole. He must have a natura
aptitude for mathematics and 4
thorough knowledge OF economics.
The accountant must be selected
as the dentist and the doctor are
selected-for his personal service.
| The business - certainly worth the
! same consideration that Is accorded
the person. A business policies are
based on the accountants report
ard business secrets are open 20
( him. ne must be selected with care
The true ideal is the ANALYSIS and
| judgment OF each business by IRE
| real accountant himself gathering
the figures in person in the client. e
! Office. assisted only in the minor de-
tails by a qualified assistant working
| under his direct supervision.
The employing or an accOuntan ~
means the protection OF capital the
! insuTing OF greater confidence be-
| tween t1e stockholder and manage
/ ment, and the stabilization or the
morale % the ONCE force. and the
/ pointing out 20 tho management The
/ weaknesses so that they may So
| cure bsst control over production
/ costs and profits.
The income tax law has made
many business men appreciate good
accounting that would not have done
50 otherwise This "a illustrated by
| the low rate or mortality exlstIne
now ss compared 10 1915.