FARM ACCOUNTS.

New Zealand Herald, Volume LXVIII, Issue 20922, 11 July 1931, Page 16

FARM ACCOUNTS.

AID IN COMPILATION.

CO-OPERATIVE EFFORT. SUGGESTED ASSOCIATION. The formation of Farm Accounting Associations, promoted on a basis of cooperation between farmers and public: accountants, is advocated by the, Canterbury Chamber of Commerce in the latest bulletin issued in conjunction with the Canterbury Agricultural College, Lincoln. The suggestion follows the recent completion by the college authorities of a farm account book, complete with both instruction and example, designed to facilitate the adequate keeping of business records by the busy farmer.

Since the book provides a suitable system of keeping farm accounts, and since it is published at cost price, the New Zealand Farmers' Union, many newspapers and several banks, stock and station agents, solicitors, dairy companies and accountants, have freely recommended its purchase. The first impression has already been sold out and a second one is being printed, a fact which shows that the time w;ts ripe for an increase of farm accounting, and that farmers generally are more interested in the keeping of farm accounts

Co-operation of Accountants. Although the instructions and examples in the account book have licen made as complete as possible it is recognised thatvarious unexplained difficulties will still arise and that many farmers unaccus tomed to account work will experience u little difficulty in making a start. Several banks, stock- and station agents, and others, have agreed to assist the farmer in making his first entries free of charge, but even then, farmers vwho are out forking all day will be, at some stage or other, unable to keep their account work up to date. Consequently, it is suggested the co-operation of public accountants is advisable. Instructions by which those farmers who desire to do so can cooperate with accountants in the simplest possible and most inexpensive way have accordingly been included in the account book. The chamber considers the simplest method would be for the farmer to. • (1) Compile an opening list of assets and liabilities in the blank pages of the account, book, on the same lines as shown in the instructions and example given; (2) place his business matter in tho illca provided as directed ill the account book, (3) periodically each three months, at dates and times prearranged with the acqouutant, bring to him tho files of accounts paid, cheque butts, deposit slips, account sales, bank pass-book or stock agent's monthly-statement, and the account book, where possible, filled m correctly and up to elate, Securing Gheap Service.

At the end of the book-keeping year the farmer would fill in the closing list pf assets and liabilities, and tho accountant would finally check over the year 8 accounts. To have these services rendered cheaply and to obtain the greatest possible benefit from the accounts, it is necessary for a number of farmers to agree to keep their accounts with the one accountant, hence the suggestion for the formation of accounting associations. Farm accounting has shu\vn remarkable development in other countries during recent years. In the Netherlands every province has its central co-opera-tive ftil'm accounting association. Each association keeps the accountancy books of its members, compiles statistics in accordance with the results obtained, fills in the income tax and land tax assessment forms, and prepares all objee* tions whenever the payment of the tax is fixed bv the collectors at too high a rate. In Switzerland the development was probably earlier and the organisation has expanded considerably,

Assistance by College. In England and Scotland likewise much attention is being devoted to w extension of farm accounting. The work ot the Institute of Farm Economics, at Oxford, and of Professor Huston, at Leeds University, has become widely known. In many of these places the annual accounting charge to association members does not exceed £1 per farmer. To assist in development on these lines in New Zealand, it is considered that the co-operation of public accountants i» each district should be secured and associations formed. Where a farmer is a member of a farm accounting association and keeps hia accounts systematically and methodically, the association's charge for supervision, checking of the accounts and filling in of any necessary forms, would be small, In order to secure the lowest possible charge, an association of a sufficient number of formers would be necessary. If sufficient applications to join an association from any one district are forwarded to Canterbury Agricultural College, tho necessary assistance will be given to set Up a committee of subscribers to form a>« association.