The talking machine world (July-Dec 1918)

30 THE TALKING MACHINE WORLD October 15, 1918 A Real Accounting System for Retail Dealers A Practical System of Accounting for the Use of Music Dealers, Which Can be Adapted to Fit the Needs of Any Business, Large or Small, and Which Will Enable the Dealer to Have Accurate Knowledge of His Stock, Overhead, Resources, Sales and Profits — Devised by Walter Engard, of London, Ohio It is conservatively estimated that fully 90 per cent, of the business concerns of this country do not know how much money they have made during the current year, nor do they know what it has cost them to do business. The most of them have some kind of a record of receipts and expenditures, and now and then they strike a balance. But it is absolutely necessary for business men to install some accounting method whereby they shall know and not merely guess at such important facts. Keen competition, rising costs and decreasing profits, together with the rapid increase in the business death rate among retail stores, are making it necessary for the retail merchant who wishes to attain success to provide his business with an accurate system of accounting. This system should be simple, yet accurate and easy to operate. It should be convenient and economical. It should also afford the merchant protection and give all the information necessary to the successful management of his business. The best system for any business is one that will give to the merchant all the information necessary with the least efforts. I am having reproduced here three ruled forms which go to make up one of the most complete systems of accounting that can be installed, taking care of your business records in the smallest amount of space and requiring but little time.' This system is complete in every detail, showing you at the close of each day just how your business stands, also your actual profit for the day. The first form of this system is known as the "Daily Record of Sales by Departments." This form accommodates the record of the sales in every department of your store, whether it be one or a dozen, by days. At the top of the form on the right space is provided for entering the month for which the record is being kept. On the extreme left it is provided with columns for entering the day of the month and the day of the week. The days of the week, however, are printed right on the form at the time of printing. If the month comes in on Wednesday you start with the first Wednesday that appears on the form and number down the form as 1, 2, 3, 4, etc., skipping the 5th, as this date will be Sunday and every seventh number until you have numbered as many lines as there are working days in the month. If you wish to keep the sale of every article separate then you must provide a space upon this form for as many articles as stance, you divide your store into six departments; pianos in department A; talking machines in department B; records in department C; sheet music in department D, etc. Now, if a clerk makes a sale of several sheets of music and some records then he will make out two sales slips, one for the music and one for the records, marking the slips for the music department D and the slip for the records department C. The same is true if you should prefer to number your departments in place of lettering them. At the end of the day the bookkeeper will add up the sales of each department and enter in the column pro in the first column; in the second column you will enter all money paid out, including the amount of your bank deposits. You will then add the total amount of cash rlceived that day to the balance on hand the day before and subtract the amount paid out and this gives you the amount of cash on hand at the close of the day. This amount is entered in the third column and is the amount of money you have on hand with which to start your business the following day. Under the heading "Banking Account" you enter the amount of money deposited that day in the first column and the amount withdrawn Daily Record of Sales By Departments, Month of Date Day Total Sales Sales By Departments Cash Credit Dep't A Dep't B Dep't C Dep't D Mon Tue Wea Thu Fri Sat Total for Week This Form Shows What Sales vided for that department, then total the total sales for the store and enter this amount in the total sales column as provided on this form. This form keeps you posted on what is being done in each department every day of the year. The second form is the "Daily Record of Cash, Accounts, Profit and Expenses." This form, like the preceding one, provides for the recording of this information daily. In starting in with this form you will need to take an inventory of the amount of cash on hand, the amount of your bank balance, the amount of your accounts payable and accounts receivable; these amounts Each Department Is Producing that day in the second column. Add the amount of deposits to the balance for the day before and subtract the amount withdrawn and you have the balance of money in the bank at the close of the day. This amount is entered in the third column under this heading and keeps you posted on the condition of your bank account from day to day. Now under the heading "Accounts Payable" you will enter the amount of goods purchased that day, or rather the total of the invoices for goods purchased which you received that day in the first column and in the second column S T 0 C K E 1 G I S T E R Pianos Talking Machines Date of Entry Stock Numb r. Make Description Cost Selling Price Date Sold Date of Entry Stook Numbr . Extend same rulings for talking machines as are shown for pianos, and continue same for records, rolls, or other items necessary to register for complete inventory A Simple Form of Stock Register, Which Will Furnish an Accurate and Always Up-to-Date Inventory you carry in stock, and you will have your bookkeeper take the sales of each article off of the sales slips as they come in. But if you divide your store into departments then the salesman will make out separate sales slips for articles sold from the different departments. For in are to be centered in their respective columns as provided on this form on the line which reads "Amount Brought Forward." At the end of each day you will enter under the heading "Cash on Hand" the amount of all cash received, including money received on accounts receivable, you will enter the total amount paid upon these accounts payable plus the discount and any allowances. Adding your amount of accounts payable for the day to the balance for the preceding day and subtracting the amount paid you have the amount of all accounts payable for at