34 THE AGRICULTURAL CLUB. 



All the circumstances are altered. Farming has not escaped 

 the rapid flux and change which has been observable for a 

 number of years, and has been accelerated during the last five. 

 The increasing cost of all farming expenses ; the pressure of 

 Income Tax Assessments ; increasing competition ; the develop- 

 ment of transport, tending to bring town and country together 

 all of these combine to force the question of farm book-keeping 

 to the front. 



When speaking of farm accounts, I am not referring to the 

 farmer's Bank Pass Book. If he is relying on that to know his 

 financial position from tune to time, he is unwise. The position 

 disclosed by the Pass Book is too indefinite. Private transac- 

 tions may be mixed up with those of the farm, obscuring the 

 results ; amounts owing to and by the farm are not taken 

 into account, nor differences in the amount of the valuation at 

 the beginning and end of the year. 



Most of the above objections apply equally if the kind of 

 account relied on is one of cash receipts and payments only, 

 without a valuation and without regard to the amounts owing. 



A simple method of book-keeping for small or medium-sized 

 farms is to use a cash book with several analysis columns on 

 either side, and a farm diary. This method will enable the 

 farmer to keep the private transactions separate, to account 

 for all the monies he receives, and to verify the correctness 

 of his cash book with the Bank Pass Book. At the end of the 

 year the totals of the various analysis columns of the cash book 

 are the foundation of his annual statement of account, in which 

 will be entered the amounts owing to and by the farm at the 

 end of the year, and the amount of the Inventory and Valuation. 

 This plan is the simplest that will give efficient results, and in 

 some cases, including the larger farms, more books will be 

 necessary. 



In all cases accounts are a valuable source of information, 

 and hi most cases they save money. One of the main objects 

 in keeping accounts is that the fanner may know at regular 

 intervals how he stands, and to what extent his farm is paying. 

 Knowledge of the facts is the first step towards economy, and 

 the proper control of expenses and of the whole financial side 

 of the farm business. 



The expenses of the farm can be divided into as many headings 

 as is desired and a watch kept on each expense with a view to 

 economy. The various sources of income can be similarly classi- 

 fied, and useful comparisons made from year to year. 



Proper accounts will prevent the possibility of an account 

 being paid twice ; will save trouble with disputed accounts ; 

 and enable track to be kept of troublesome things such as sacks, 

 over which a lot of money is lost every year. Further, if the 



