FARM ACCOUNTING

Otago Daily Times, Issue 22205, 7 March 1934, Page 5

FARM ACCOUNTING

ANNUAL MEETING OF ASSOCIATION

The first annual meeting of the Farm Accounting Association of New Zealand (Inc.) was held in the Public Trust Board Room last evening, the chairman (Mr A. C. Leary, Evan's Flat) presiding. There was a good attendance of members.

CHAIRMAN'S REPORT. In moving the adoption of the balance sheet the chairman said that 15 months ago Mr A. C. Cameron and other speakers addressed a meeting of farmers and outlined a scheme for the development of a farm accounting association. Much enthusiasm was shown by all present, with the result that the association was inaugurated and a board of directors set up. Those present, at that initial meeting realised that the weak spot in farming operations in New Zealand was the business side of farming. They realised the urgent need for a farm accounting service for farmers —a service which they could get at minimum cost, and one which would have in its employ experts whose judgment could be relied upon. Fifteen months, he said, had now passed since the association was inaugurated. It was barely 12 months since their accountants actually commenced operations, and those present who had come in contact with their work would be able to bear out his statement when he said that they had done and were doing a remarkably fine work. During the past 12 months over 500 farmers in Southland, Otago, I and Canterbury had had their affairs 1 straightened out by this association. Tho demand had been so great that, had they had a larger staff of experienced men, they could nave extended operations considerably, but the directors realised that the ultimate success of the work depended entirely upon the calibre of the men employed, and they had preferred to " hasten slowly," and to tackle only such territory as could be handled efficiently by the three initial farm accountants appointed Mallbch, Struthers, and' Aifcken. Any solicitor or accountant was not necessarily an expert in farm accountancy, and in selecting the staff the directors had chosen men who had not only qualified by examination, but who bad had a wide experience in handling farmers' affairs. A further qualification (and posi sibly this was the most important qualification of all) was that the men selected * be definitely interested in their work, and had the right attitude of service for the farmer. Only men measuring up to this standard had been selected. " Letters received from our clients from various parts of the South Island," said Mr Leary, "show that the service.has been' appreciated, and the worth of the men employed recognised, and I have very little doubt indeed that 12 months hence your directors will be able to report to. you a very considerable development in the bum.nesa of the association, The average farmer looks Upon the compilation of the various returns required by the Government as a 'nightmare/ Before the service inaugurated by this association-was made,available, I know of many farmers who have worried a, good deal, as they have endeavoured to straighten out their affairs, and to these, this association is proving a boon and a blessing. .The average farmer is not in a position to make up his accounts on the- double entry principle and thus obtain the advantage of depreciation allowances on buildings, implements, etc. Few farmers know that they can carry forward losses for a period of three years as a deduction from future,income. The satisfaction of knowing exactly where he stands—the satisfaction of being.able to get sound advice when it is most needed •~4he satisfaction of knowing that the returns sent in are aceurate-r-must in itself be a good source of mental relief to the members of this association. I would say that I feel that the work already accomplished has more than justified the. association's existence, and the fact that our last year's clients are our best advocates speaks volumes for the nature of the service being rendered." ~■•. ■• ' ;•.":';' During the past year the general manager and accountants had frequently been asked for guidance as to What particular course they would recommend for young fellows intending to make farming their life-work. No satisfactory course, was available. Such accountancy or legal courses as existed were and were only useful for young fellows desiring to go into offices, Another important point was that the,cost of such courses was beyond the means of the average farmer's eon. ' ~ , ~_. „_+*„„ The directors considered, this matter, and decided to establish a correspondence course. Those who had seen the prospectus of the course would agree witn £im that it offered ample provision, for farmers to receive instruction on • pusiness'matters appertaining to farming. "As you are all aware, he said, tne. success of the association is largely due to the fact that it has been, as it.were, 'mothered' by the Otago Farmers'Union Mutual Fire ■"■ Insurance Association, through whose branches the Farm Accounting Association functions. We are, in some respects, a department of the, OtaS Farmers' tfnion Mutual Fire lnsurance Association. - This happy arrangement enables the Accounting Association to carry on without the burden * over-. head' which would otherwise be necessary, and has also enabled us to give a s&vfce at a very much lower rate than would have been possible had it not been . for this arrangement. We have every reason to believe a«ang e ment i 8 of mutual advantage to the Fire Insurance Association, and that »ts business has been materially, assisted by the service* we are rendering. Yj-"*„_ '' I have already referred," said the sneaker, "to the qualifications of tne members of the staff, and I now wish tp express appreciation of the ;s°d "° r r * of Mr Cameron and_his. .staff, Messrs D. M. Malloch, H.-;P.' Aitken A. B. Struthers, and C. F. Jones. It is largely due to their efforts, and! ability-that, the association has already established itself farmers, and I feel that. we. are fortunate S having men of their calibre our staff. The formation of the FannAc counting Association of New Zealand w . Snce 8 of the desire, of those prommen in Farmers' Union circles to be oi iur Iher service to .their f &«&«& In conclusion, I wish to say.that £«WS your association is providing auseful and iecessary service to farmers and one ot national importance.

A VALUABLE SERVICE.Seconding the motion Mr E, H. Murney (Tapanui) said that the association m its initial year had enjoyed a most successful chapter. Had it not been for the Government's thirst for taxation revenue the association might, never have come into being. Therefore, they owed their association to the Government. Increased taxation made correct and detailed accounts necessary. As time went on tiie association would become more and more valuable, not alone from the point ot view of taxation, but also m the solution and proper understanding of various knotty problems which were always arising. The course for young farmers would be found equally useful, and should be made the fullest use of. The older farmers had not needed the association a*> badly as young farmers, and by that he did not mean that they were not as brainy as the new generation. On the contrary, if the association and its courses could make younger farmers as successful as the older generation it would have more than served its purpose.— (Applause.) , ~ „ ' , Mr Colin M'lntosh (president of the North Canterbury branch of the Farmers Union), speaking as a director of the association, said he had come in contact with the highly necessary and useful work of the association in Canterbury, and had been greatly impressed not only by the value of the service but also by the performance of the association's field staff. Had farmers had the benefit of such an association before the slump they would not have fallen before the advance of the depression so early in the game. The speaker stressed the %vide variety of ways in which the association could, assist the farmer and save him time and worry. His personal experience was that if the fee had been 10 guineas he would gladly have paid it, considering how excellent the work had been done for him by the association. Farmers generally were deeply indebted to the Otago Farmers' Mutual Fire Insurance Association for this latest extension of its activities. That body had saved them a great deal in fire premiums and was now saving them both time and money. ■ Mr G. Hamilton (a Southland director) said the association was a growing concern in Southland, but the association had reason to be proud of the work that was being done in its name in the south. The motion was adopted. ■ ...

NEED FOR THE SERVICE. ' The general manager (Ht, £•' C. Cameron), speaking of. the need for such a service,-said that anyone coming in don-, tact with farmers could not but be impressed by the glaring weaknesses which existed in farmers' affairs with respect to the keeping of proper accounts; flu experience in a stock and station firm had convinced him of the great need that existed for such a service. Jt was * good thing for the Insurance Association to supply the Service for it .made their inspectors welcome:, visitors instead of nuisances., ? The service meant the expansion of business and 'the establishment of new contracts. The' experi-. been' more '.than .justified. The; demand for the service was assured before the service was provided, and at the moment they had not enough men to cope "with the 'increasing demand. During tjie coming year an endeavour wouldbe made to deal with all the applications which were "being received from all districts in Canter bttry, Otago, and Southland. They had received many complimentary letters and resolutions expressing gratitude for what had already been done. Requests have been received from' Nelson for "an extension of the service to that locality. Even from Hawera and the Wairarapa had come letters requesting the assistance of the association. The correspondence, service was a new depar-ture,-but it Was proving most ful. Both the accountancy and legal aspects of the course had been weighed in the balances and found to be far from wanting. The staff was doing excellent work, and devoting-a lot. of time and energy to making the service a success. Their work was the best advertising medium the association could and they were relying entirely o» satisfied members to make the work of the association known. •.••'».' ■'«. "';,' Mr Majloch; • one of the field staff, said ,the work was pioneering work, and the accountants were keenly interested and enthusiastic about it. He would like to stress the confidential character of the work. Nothing that was disclosed to the staff would ever be divulged elsewhere. One of the foundations of the association . was the faithfulness of, the organisation. Unless they could foster those feelings of confidence among the farmers the association could not be successful. ELECTION OF DIRECTORS.

The three retiring directors—Messrs E. H. Murney, A. Craig,, and D. M. Malloch—were re-elected. LECTURE BY DR WESTON. At the conclusion of the annual meeting Dr I. W. Weston (farm economist at Lincoln College) delivered an interesting and instructive address on farm management surveys.