OCR Text |
Show DUCHISNI ' I 5PAN1SH fORK f FROM FARM-RANCH -PAYSON THROUGH THE COMMERCIAL BANK OF UTAH NtPHI DELTA f BY WES DICKERSON AGRICULTURAL CONSULTANT I Farming, like banking or any other business, calls for a certain cer-tain amount of both outside and inside bookkeeping. Although it is important for a farmer to have a written record rec-ord of what he buys and sells, records and accounts which show what happens inside his farm business are probably of more value than just the record of what he owes others and what others owe him, or of sales and Durchases. ; There are three important financial fi-nancial records or accounts that every farmer should keep. Besides Be-sides these three, many farmers have found it worthwhile to keep other records and accounts, but in my opinion these three accounts are the njost important ones. And here they are: First, an inventory; then a cash account ac-count or a record of money taken tak-en in or money paid out; and the third one is a check book record-. i A farm inventory is, of course, just a list of what a farmer owns. It is a picture of a farmer's business and personal financial affairs at some one particular time. But an inventory inven-tory is not a moving picture. It does not show what has happened hap-pened or how a business or person got to where he is. A series of inventories, taken a year apart are, however, like the series of pictures in a movie film. Looking at a series of inventories shows vou the changes that have taken place in the financial situation. Probably' most of you have taken a farm inventory and are familier with this farm account book put out by your State College Col-lege of Agriculture and which are available for that purpose. For the time spent, an annual inventory will show more about a farm business than any other financial record a person can keep. So, if a person is going to have just one record or account, ac-count, I would say that it 'ought to be an annual inventory. That second kind of a farm financial record which I think is highly important is a farm cash account, or a record of money taken in and money paid out. Probably more people keep some kind of a record of cash receipts and expenditures than any other financial record. If a person has been keeping a farm cash account, it may save him from paying considerable unnecessary federal income tax because a written record is a lot better than memory. Sometimes, if the only financial finan-cial record a farmer has is just his inventory, and this shows a small net worth, it might not appear to a bank that it is warranted war-ranted to make him a loan. On the other hand, if the borrower has a summary of his receipts and expenses from a cash account, ac-count, this may show that he has a profitable enough business to warrant the loan. The third form of account or financial record every farmer should keep is a check book rec ord. If a person does not wish to use a big check book, he can take any ordinary pocket check book and numK and stubs h& chf, the stubs and thi RLavi" t$ bered means that r 1 must be accoun)LeVery ' . WhenlL?Sl Sif farmer should ?L K I M tory, keep a cash La i keep a good check I C0H L. some of you m bot4 ri' enough. WeC nght in some X doubt besides an cash account, and a ueiN , record, some of y . keeping dairy rP "e i' , records, cost account' & ' .vidual crops, or even0n Plete set of cost acC0Un(a S the crop and HvS?i prises on your farrT ,,ck V congratulations, and 1S0'U' er to you 0 mte |