| Show WHAT FARM ACCOUNTING MEANT I Io o IN tea tear THE MANAGEMENT OF A FARM r Successful Farmer Tells How Pencil Helped Guide His Operations and Swell His Income s An Aid to Better Shows Credit Profits and Prevents L Losses THE HE owner and operator of one of the most successful dairy farms in Wisconsin prepared recently the Agricultural Commission of the American Bankers Association a first hand statement of the part farm accounting has played in the management of his enterprise This operator W. W T J. Dougan tells the following story When I started farming I began keeping a simple cash account but soon found that it was not sufficient accounting for I arn purposes Such a record did not take taka into consideration the vital factors fac fac- tors of improvements growth or of livestock live Uve stock or depreciation Since 1910 I have kept a complete account on the accrual basis The accounts however are no more than any farmer can easily keep The Tho outstanding outstanding out out- standing benefits from keeping such accounts might be listed as follows The Way It Works Works 1 Income tax r reports ports made easier J Accurate and dependable Income tax reports can be made from the yearly accounts By keeping them on file I Iam Iam am always ready to satisfy the tax Inspectors 2 Accounting makes possible a budget With the accumulated ed data or of the past years I can make out the bUdget for the coming year The Income being fairly stable the budget pr problem blem Is to adjust the ex ex- If one branch of the bus busl ness will need extraordinary expend expend- ture such as as new machinery there must be a cut In some other branch such as building or livestock pu purchased pur- pur chased or fencing 3 Accounting gives a true basis basla for Especially has accounting meant for me larger credit and happy relations with my banker With a complete financial statement before hIm the banker can Intelligently determine deter deter- mine what credit I should have With Witha a full knowledge knowledg of the farm profits In the past I know what credit I should accept No farmer or man should hould accept credit from hIs bank unless ho he Is able to put the tho money Into productive Investment and his margin of profit assures urea the ability to repay the loan wIthin a reasonable time For the farm thIs reasonable time Ume cannot be three or six months The farm turnover Is too slow for that A helpful and just period of farm credit for working capital must be from one oneto oneto to four years There Is another benefit from ao ac- the counting benefit of ot knowing whether one Is going up or down By extra sales one might be flush ot of money and buy heavily thinkIng he is fa coming out ahead but In reality he heIs I Is sacrificing the future On the other hand one might feel pinched and have little money to spend but In reality he Is laying up capital r The bankers Agricultural Commie slon sion has suggested the following form ot of farm credit Indicating the records necessary to kept be-kept SUGGESTED FARM CREDIT STATEMENT f Adapted from blank used by Federal Reserve Bank Chicago One One Of The First Important Factors In Farm Accounting ux Name Address T Business s' s Date Date of or Statement MutA U CAW cu 0 oN RAD UD AND AD IN IH tANK I IOn OYt Till nm Folio Bucu U mD STAm I nu i 1 OnEil ALI 1 r 11 N A ME RANI 11 CAIN hEM ArD AD PRODUCT haunt N IN Duo In lime tN Ii BELOW Nos TAnI Lo z DE M Mm YUJI Y ca Li l-b l II Nona to IT 1 r Dot DIYa ONt a. a r. r Cu CAi l Olf SN y LIA 1 1 Total Quick AWIL Ah Tot To FAbI D Too ruT l NN t y N Ac AD w Fuw FAbI WD LAND na IX REIDY 1 I N. N n N IY VAlno AT I. I AJol To t. t anUI DC d Y 1 0 07 AMEn ALII Un uD 1 I. I w H 1 a. a i. i J a. a 1 Total S. N. Ht hh Total Tot LIVE LIVESTOCK D I. I i. i Bor i. i Rm Ramt i. i i. i Ilora Milk h a Coo Co e Bed tco eow Y l rood Son I. I Ewes i. i Ir 1 1 ulna 1 W. hm t. t Cot CoIt i. i near Cora f P oc- oc S Lambe M 1 Crowing Crowine C. C Crop CaI Dd anet F. F Pro uan H. H c. c Con l. Acne ot od DI Bu Corp Ii au Oats Ote Wheat BI O. O I HalO ai a 0 u eo SCHEDULE SCHEDULE F REAL ESTATE Jm nd or No d rr-i rr AZ I 01 I JooL ro leti t CI Cin I 10 01 Unimproved o or Lou Lote Value tJ Du Da NN NA 0 NINN h. h y NI N N INs N w N. N N. L N. N foe r i. i I In nov iTa 2 or k I j. j ili Domsic iff i ii i i ii NI N t 1 N N L. L COUNTY KEY BANKERS BANKERS BANKERS' I Who are arc they County representatives fives tives of the agricultural commit tee ot of the state b bankers assocIation By whom appointed Preferably by bythe the agricultural committee In cooperation co- co cooperation operation wIth the President and Secretary of the State Bankers As sedation n and the Extension Director tor of the College of Agriculture What art are their duties 1 To get In touch with a h bank in their respective counties and get a line on what each Is do lug Ing agriculturally represent the agricultural I IJ J committee ot of the state j I tion In any county matters perl per i l' l taming to agriculture In whIch banks or the bankers I r tion are Interested i 3 To serve as the medium throng 1 which the assistance of banks of the county can be obtained to meet an emergency such as asa asa a sudden outbreak ot of disease or E Jn e t pest n I 4 To be responsible for interesting the banks ot of the county In one or more of the agricultural i projects approved jointly by bT the state committee and the i college of agriculture How can they thoy proceed 1 By BT correspondence i 2 Present projects or plans plane at county banker meetings i 8 Make personal visits to banks of P the county preferably In cornas corn com 1 D as Y with the county agent alent If tl Ken Kentucky's Purebred Sire Special sponsored by bT the Kentucky Bankers Association left Louisville recently t making morning noon and afternoon stops every day Besides exchanging a purebred sire aire for a scrub bun bull at every station registered heifers gilts sheep and pens of purebred poultry were to be given away and discussIons together with the preparatory work in fn whIch over people are engaged should i date tate raising the average production ot of Kentucky livestock according to i F. F O. O Dorsey of Louisville I of the Agricultural Commie I Ion atop American Bankers i U j |
