

COOPERATIVE MILK-DISTRIBUTING PLANTS. 29 
which quickly enables the various phases of the business to be ana- 
lyzed and comparisons to be made, thus giving the best opportunities 
for policies to be formulated for the greater success of the business. 
NECESSITY FOR ADEQUATE ACCOUNTING SYSTEM. 
Among the important causes of many business failures in recent 
years, according to our large commercial reporting agencies, has been 
a lack of accurate and detailed information concerning the business. 
Inasmuch as the only reliable source of information concerning busi- 
hess operations is the records kept of them, it would seem that the 
importance of proper records as an aid to successful management is 
deserving of more consideration than is ordinarily given the subject. 
The importance is further emphasized by the statement of a certain 
national trade association that 85 per cent of the failures in business 
are due to inadequate bookkeeping. It is the unanimous opinion of 
those who have made a study of the subject that a very decided im- 
provement must be made in bookkeeping methods before any appre- 
ciable decrease can be expected in the present heavy business mor- 
tality rate. . 
In cooperative organizations it is just as essential that adequate 
and proper accounting records be kept as it is in private and cor- 
porate enterprises. Aside from the question of success or failure 
there are other benefits which may be derived from adequate account- 
ing. Uniformity in the manner in which financial and operating re- 
ports are compiled is of great importance. The true progress of a 
business can be judged only by comparing the results of one year with 
those of preceding years. Therefore, if it is desired to know the 
progress that, has been made, the reports must be comparable. The 
reports are not comparable and can not be made so unless the records 
have been kept on the same bases year by year and all the facts have 
been recorded. Unless the system is truly adequate, some of these 
tacts are sure to be omitted and thus the entire report rendered worth- 
less. 
The preparation of proper income-tax reports, cost statements as 
a basis for selling prices, wage scales, and the whole operation of the 
business depend upon information which can be secured only by the 
use of an adequate system of accounting. 
But first it should be determined for a certainty that the system 
is really adequate. A small number of forms, requiring little work 
to keep them and purchased at a small initial cost, by no means con- 
stitutes an adequate system of accounting. Any system is worthless 
if it does not supply the information needed to conduct the business 
properly. 
