2 BULLETIlsr ll8j U. S. DEPARTMENT OF AGEICULTURE. 



forms of these organizations. In the others it is i)lanned to deal 

 with the business requirements of specific classes, such as produce, 

 deciduous-fruit, citrus-fruit, elevator, creamery, and various other 

 organizations, and to present sj^stems of accounts and information of 

 special value to the type of organization for which they are written. 



SYSTEMS OF ACCOUNTS. 



ACCOUNTING RECORDS NECESSARY. 



Accurate records and accounts are essential in the management of 

 every business enterprise, great or small. The failure of many co- 

 operative organizations for marketing farm products has been 

 traced either directly or indirectly to the lack of proper accounting 

 systems. 



The very life of a cooperative organization depends on the confi- 

 dence reposed in it by its members and on their knowledge that the 

 affairs of the organization are conducted in a businesslike manner 

 and that each transaction is recorded clearly and accurately in books 

 of account. Such records will tend greatly to increase confidence. 

 The organizations which keep accurate records will also be in a 

 better position to command the necessary financial assistance from 

 bankers and credit men, when such help is needed, than associations 

 having lax systems of "accounting records. 



When markets are bad or the quality of the product inferior, 

 causing low prices, the faith of even the most loyal members is often 

 slightly shaken. In such cases assurance can be reestablished quickly 

 by having the records of all transactions in such shape that the mem- 

 bers can trace their deliveries through the books from the time they 

 are received by the association to the date of settlement. 



WHAT IS SYSTEM? 



The fact must be kept in mind that business systems do not con- 

 sist entirely of forms. The most perfect set of forms ever drawn is 

 worthless without the organized effort to use them properly. 



System is organized effort, and every business must be conducted 

 under some sort of prearranged plan, so that there is unity of effort, 

 making each pound of effort expended further the objects of the or- 

 ganization's existence. Care should be taken in choosing a system 

 for a cooperative organization to see that it hangs together, each 

 part being in complete accord with every other. 



BOOKKEEPING. 



Bookkeeping may be defined as the systematic and chronological 

 recording of financial transactions. It is the medium through which 

 accounting results are obtained. There are two methods of book- 

 keeping, single entry and double entry. 



