FARM MANAGEMENT 301 



require detailed records of this sort. Every farmer, as mana- 

 ger of his own farm, should employ some system of account- 

 ing that will not only keep him informed as to his total profits 

 or losses for the year, but also as to such details as the cost 

 of, and the return on, various phases of his business, such as 

 individual crops, groups of farm animals, etc. It should tell 

 him whether or not his cows are paying for their board; 

 how much his horses are costing him ; and whether his wheat 

 is more profitable than some other crop, such as barley, 

 oats, etc. 



Requirements of a system of farm accounting. The 

 farmer must usually be his own bookkeeper. For this reason, 

 the system he is to use should be simple enough to require 

 but little of his time. At the same time it must be accurate 

 and complete enough to keep him informed in regard to the 

 essentials of his business. 



The following records will usually prove adequate for a 

 complete system of farm accounting: inventory; cash re- 

 ceived and paid out, in totals and classified; bills owed to 

 others or bills payable; bills others owe him or bills receiv- 

 able; labor records, including horses and men; feed records; 

 production records. The first two in this list are absolutely 

 essential to give him a correct interpretation of the farm 

 business. The others are useful in locating profitable and 

 unprofitable enterprises. 



Inventory. An inventory is simply a list, giving values 

 of everything connected with the farm business. It should 

 be taken at least once a year, usually just before the planting 

 season begins, in order to show how much has been made or 

 lost during the previous year. This refers only to the farm 

 as a whole. It does not tell what particular enterprise is 

 the most or least profitable. To secure this information 



