CHAPTER 72 



Farm Records and Accounts 



In every farm community may be found a certain percentage of the 

 farmers who are successful, but who are often unable to tell upon what their 

 success is based. This lack of knowledge on the part of the farmer is due 

 chiefly to his not keeping farm records and accounts, and, therefore, not 

 attempting to carefully analyze his business. Investigations along this 

 line have done much not only to show the labor income of farmers in differ- 

 ent districts, but also to give rather definite information on the duty of farm 

 machines and the average amount of work that should be expected from 

 the farm laborer. 



Those farmers who keep good farm records and accounts are not 

 willing to do without them. The study of such accounts adds much to the 

 interest of farm management. Farm accounts should not only show the 

 profit or loss of the farm as a whole, but should show on which crops or 

 animals the best profits are made. Such accounts do not make necessary 

 a course in bookkeeping. Cost accounting is quite different from book- 

 keeping. Attempts to apply bookkeeping to farm cost accounting usually 

 fails. The first essential to cost accounting is good judgment and a 

 thorough knowledge of the farm business. 



Object of Keeping Accounts. — The chief object of farm accounts is to 

 learn how to improve the business of farming and make it more profitable. 

 Another object is to have a record of everything bought or sold on time. 

 This enables the farmer to know what he owes and what is due him. Hav- 

 ing a record of the payment of a bill may prevent its payment a second time. 

 Most of the disputes relative to debts are the result of forgetfulness rather 

 than of dishonesty. When accounts are not kept, bills creep up in an aston- 

 ishing way, and one is apt to buy more than one's resources warrant. 



Many of the industries employ efficiency experts to study their 

 business plants with a view of increasing their efficiency. This may result 

 in a saving in the cost of production or increasing the output without 

 increasing the investment. Such experts emphasize the importance of 

 keeping accurate records of costs. This enables them to ascertain just 

 where losses occur and where to apply the remedy. It is just as essential 

 that farmers keep records that will enable them to know where the gains 

 and losses occur. Such records would surprise many farmers. 



Essential Records. — There are many kinds of farm records that are 

 desirable. Those most useful will be determined by the kind of farming. 

 Animal records, egg records and records of milk production are important 

 where any of these enterprises are conducted on the farm. Weather 



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