FARM ACCOUNTING.

Franklin Times, Volume XXI, Issue 69, 15 June 1931, Page 3

FARM ACCOUNTING.

SIMPLIFYING THE METHOD. CANTERBURY COI.LEGE SCHEME. A farm account book containing instructions. a sample farm account illustrating the instructions, blank account pages in which the farmer can write up his own accounts, and files in which to place his business records, is now available on application to Canterbury Agricultural College. A small charge is made for each account book, with instructions and files complete. to cover cost of printing and distribution.

•The instructions for keeping accounts are along the lines of bulletin No. 8 on “Farm Accounts,” issued by the Canterbury Chamber of Commerce. The a.ccount entries are so arranged that in the simplest possible manner, and with the least writing, the farmer can enter his accounts in a form most convenient for any analysis made by himself, and at the same time include all details required for legal and taxation purposes. The plan is based on that actually used by some farmers, and the time taken need be only one hour per month, or two or three hours every second or third month.

The files are labelled No. 1, “Accounts to Pay”: No. 2. “Accounts Paid”: No. d, “Bank”: No. 4, “Correspondence Received”: and No. 5. “Correspondence Dcalth With,” and and are issued so that the farmer can keep his accounts in a convenient manner either for referenc or for later entrance in the account book. The accounts for each branch of the farm, such as sheep, cattle, dairycrops, etc., are kept on separate pages, so that any analysis of-the of the accounts or budget of next season’s income and expenditure can be easilymade along the lines of bulletin No. 21. “Farm Budgeting,” issued by the Canterbury Chamber of Commerce.

Farm accounting has shown remarkable development in other countries during recent years. For example, in the Netherlands “every province has its central co-operative farm accounting association. Each association keeps the accountancy books of its members, compiles statistics in accordance with the results obtained, fdls in the income tax and land assessment forms, and prepares all the claims whenever the payment of the lax is fixed by the collectors at too high a rate.”

Apt to Neglect Accounts. In spite of the best resolutions, New Zealand farmers, who arc unaccustomed to account work, and are out working all day, will be apt to neglect their accounts at some stage or other. Moreover, the checking of the accounts. and the filling in of taxation forms, with full claims for exemption and filing of objections where taxation is levied at too high a rate, can he much more efficiently done by a qualified accountant. Hence all farmers are advised to make use of these services. In the instructions in the account hook it is pointed out that groups of farmers could, by 7 tilling and keeping accounts on'the lines indicated, make arrangements with accountants in New Zealand, similar to those being made in Europe. Each farmer could every 7 three months, at dates and times pre-arranged by the accountant, bring him the bank and accounts paid fdes and the account book. Where the accounts were correctlyfilled in these periodical visits would still be necessary in order to make sure the accounts were not neglected, and to keep in touch with the accountant. Where the accounts were not filled in, or incorrectly filled in, the accountant could quickly rectify the position. The price charged, dependent on the time involved and Ihe number of farms dealt with, could he fixed at a very low rale per farmer. There are 80,000 holdings in New Zealand of which only 1000 comprise holdings above 5000 acres. It is probable that less than 10.000 farmers keep accounts, and that a number approaching 50,000 do not bother to do so. An attempt has been made by the issue of this account hook at a low price to provide a simple, uniform method, involving the least time and the least writing, by which farmers who do not now keep accounts maybe encouraged to do so. The. advantage of having an exact record of the year’s operations, showing, as these accounts do, how much the farmer has improved his financial position for the year, where the receipts have come from, and where the money has gone, is obvious at anytime, but more important than usual at this time when it is so difficult tor farmers to keep expenditure within income. -11181 im liord-tesliiig iois Stimulated and assisted her management, this farm-testing could stmiulale and assisl farm mnnagenienl.