2 BULLETIN 985, U. 8. DEPARTMENT OF AGRICULTURE. 
To do this, one must carefully read the bulletin before starting any 
actual work. That portion beginning on page 14, under the heading 
“How the system works,’’ and the sample entries on the forms at 
the back, will be especially helpful. In the day-to-day work of 
keeping the records, the Appendix and the sample entries will answer 
practically every question which will ever occur to the user, and the 
Bureau of Markets is at all times ready and willing to answer questions. 
There is no short cut to adequate information relating to the 
operation of any business. The only way is to install a good set of 
records, open the proper ledger accounts, and keep them correctly. 
Then the results must be studied. The information in this bulletin 
will enable a business man of average intelligence to do these things. 
RESULTS OF USING THE SYSTEM. 
A large number of business men look upon their bookkeeping as a 
sort of necessary evil, from which they can get no return. The 
information which a properly kept set of records and accounts can 
furnish, however, is the guidepost along the highway to business 
success. If one would succeed in his business probably no other tool 
will help more than a system of bookkeeping which will give the 
results herein described. 
The final test of the adequacy of any system of accounting lies in 
the question whether or not it will furnish the information neces- 
sary for the intelligent conduct of the business. This information 
should consist of a statement of the financial standing (Balance sheet, 
see page 4), a statement showing the loss or gain as a whole (Income 
and expense statement, see page 6), prepared in such detail that the 
relation of the various items of income and expense may be readily 
seen, and any other information that may be of assistance to the 
management. It should also make it possible to prepare income tax 
reports with comparatively little work. 
An illustration of each of the reports essential to a ginnery follows, 
with a few comments concerning each report. _ 
To obtain the very best benefits possible from an adequate account- 
ing system, nothing can take the place of an independent audit by a 
reputable firm of public accountants. Some of the advantages to be 
derived from such an audit may be summarized as follows: 
(1) An impartial and disinterested opinion of the general policy 
and administration of the business is obtained. 
(2) The financial records are carefully examined, and repens pre- 
sented in the best possible form. 
(3) Opinion is rendered as to whether the methods in use could be 
improved and whether or not adequate reserves are being accumu- 
lated to care for depreciation, bad accounts, etc. 
