BUSINESS PEACTICE AISTD ACCOUNTS FOR COOPERATIVE STORES. 55 



in a busy store it is indispensable. Only the listing machine is really 

 serviceable. The smaller types, however, answer quite as well as the 

 larger ones. 



A typewriter is a great convenience. DupHcates of correspondence, 

 orders, invoices, and other papers should be retained for reference, 

 and this can be done best by means of the typewriter. 



SUMMARY. 



1. An adequate set of records is indispensable to any business. 



2. The records must be comprehensive enough to analyze every 

 important phase of the business; must be accurate and capable of 

 proof, and must be kept up at all times. 



3. An unsatisfactory system properly kept up is often more satis- 

 factory than a perfect system improperly kept. 



4. Records of like businesses should be standardized so that one 

 business may profit by the experience of the others. 



5. A system of accounts once adopted should not be changed with- 

 out authority from the auditor and board of directors, 



6. The financial statement is the foundation of any system of 

 accounts. 



7. Great care should be taken to decide on a correct classification 

 of accounts before the system is adopted. 



8. Sales, expenses, salaries, and other important facts should be 

 reduced to percentages and studied closely by the management. 



9. The cash should be checked daily from the cash register by the 

 bookeeper and monthly by the auditors. 



10. Credit accounts, both for purchases and sales, should be avoided 

 whenever possible. 



11. All bills should be discounted, even if it becomes necessary to 

 borrow money. 



12. All cash receipts should be deposited. 



13. All except petty payments should be made by check.. 



14. A good filing system is indispensable. 



15. All time sales should be recorded on triplicating sales slips. 



16. Dividends should be paid on cash busines's or accounts settled 

 within 30 days either in cash or produce. 



17. The president, manager, and auditor should each be required 

 to submit an annual written report. 



18. The audit should be regular, comprehensive, and thorough. 



19. The auditor should refuse to enter upon the audit until the 

 balance sheet is submitted by the bookkeeper. 



20. Special diligence should be exercised by the auditor to discover 

 resources and liabihties not properly included in the statement. 



21. Whenever possible a certified public .accountant should be 

 secured to make the annual audit. 



