Evening Republican, Volume 19, Number 272, Rensselaer, Jasper County, 16 November 1915 — Bookkeeping for Co-Operative Organizations. [ARTICLE]

Bookkeeping for Co-Operative Organizations.

Double entry bookkeeping Is urged upon all farmers' co-operative societies in a recent publication of the United States Department of Agriculture Bulletin No. 178, ’‘Cooperative Organisation Business Methods." The Very life of a co-operative organisation, says the bulletin, depends upon the confidence its members posses in it, and such confidence is impossible unless the records are unmistakably accurate. The double entry system is the only one which affords a complete check and should therefore be adopted in all cases. Since the co-operative organization acts as the agent of the grower in marketing his product, the books of the organization must not only contain the usual records of any business enterprise, but must also show a clear record of eacn grower’s shipments. The system must be sufficiently elastic to take care of the maximum SAume of business at the busy seasons and at the same time be economical. The six essential requirements for such a system are stated in the bulletin as follows: (a) A complete set of financial records showing the business transactions and the results thereof. (b) A record of each member's transactions with the organization. (c) Capability of taking care of a maximum amount of business during the shipping season. (d) Capability of returning to the members the proceeds from their products within a reasonable time. (e) Clear pooling records when kept, so that any discrimination can be shown quickly. (f) Auxiliary records which will give statistics and valuable information for the conduct of the business. These records must be accurate. The necsslty for providing a regular system for safeguarding the cash Is also emphasized In this bulletin, and inner precautions are given which it is said should be adhered to strictly. (1) All entries of cash should be er pllcit and items supporting such es tries should be filed so that they are> accessable for reference and verification. (2) No entries shonL recorded in the cashbook which do not relate to cash. (3) The full of each day should be deposited In the bank. (4) All canceled checks should be filed In numerical order. (5) Duplicate checks should always be covered by Indemnity bonds. (6) Reconciliation should be made each month between cash or check register and bank passbook balances. (7) Permanent record of these reconciliations should be made. (8) Checks, sales slips, receipts, etc., should be numbered with a numbering machine. Any which are spoiled should be marked void and left In the book. ;9) A regular system should be used for the acknowledgement of all cash sales, or miscellaneous cash Items received. The auditing of accounts also should receive more attention than Is frequently the case. At least once a year an expert accountant should go over the books of the organization. To minimize the cost of this small associations or circles can be formed by the organizations within a certain radius and a competent auditor can be engaged to do the auditing for all.