Excerpt from Simple Farm Accounts: A Text Book and Guide

The average farm business is not large enough to justify the employment oi. A bookkeeper. Nevertheless, on account of the fact that farm business is more complicated than almost any other, the necessity for records is very great. Nearly every business maintains complete records of its transactions in order that the relation of various items of expense to the income may be studied and any leaks or unprofitable operations may be stopped. Certain enterprises within the business may show decided profits or excessive losses over a considerable period of time and therefore it may be desirable to increase or decrease such enterprises.

Again, the relation oi. The combination of enterprises of any business must be fully known for it frequently happens that one or more parts of the business may be unprofitable while at the same time if these were discontinued even a greater loss to the entire business would be sustained. This is illustrated in some farming communities where dairying is conducted. A cost account study of the dairy industry sometimes shows a loss while the entire farm is operated more profitably with dairying included in the business than when it is left out. This is often due to better use of labor over the whole year which is required whether dairying is conducted or not.

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