Book-keeping On The Farm
( Originally Published 1912 )
It is very essential to success that all live stock owners and farmers keep an accurate book account of all income and expenditures on the farm. but as time rolls on these detailed duties sometimes become burdensome and are apt to be neglected.
Right here the writer wishes to offer a suggestion, gathered from actual experience in conducting his own farm. Open a bank account with a sound and well established bank and deposit every dollar received from the farm with the bank. Pay all your bills and expenses by check on the bank, and at the close of the year you will have an accurate book account of every dollar received and every dollar paid out. From this record you can readily see the exact source of your income, and also see how much was paid out for improvements, and how much for the several items of expense. This will give you intelligent information as to what items of expense are too large, and where economy should be practised.
Another great advantage in paying bills by check is, that you always have the record before you and you run no danger of paying bills twice.
All of this book-keeping is done by your bank without any expense to you, and it puts the farm on a good business basis and enables you to determine your exact yearly income and expenses.
Should you as a farmer or live stock owner, desire to borrow money, you can usually do it to the best advantage from the bank where you keep your account. They will advise you as to the rate of interest they charge, and will keep you posted as to when the interest and principal falls due. This, also, saves you a certain amount of book-keeping.
Also should you have surplus funds, which you desire to loan, it is always best to consult your banker as he is well posted and will be glad to advise you as to what investments you should make. Surplus funds can be deposited with the bank and draw interest until a more permanent investment can be made.
To make a long story short, make your banker your book-keeper and financial advisor.
It would be more profitable to borrow money from your banker at 10 per cent to buy a pure bred sire to be placed at the head of your herd than to use a mongrel or grade bull at any price.
Remember that high-grade, well-marked heifer calves will bring considerably more money than will calves without any indication of good breeding. For this reason your additional profits in one season will pay for a good, pure-bred sire.