Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
THE MUSIC TRADE
REVIEW
SEPTEMBER 14,
1918
A Music Dealer's Accounting System
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, Over-
head, 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 year just closed, 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 faqts. Keen competition, ris-
ing 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 mer-
chant 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 infor-
mation 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 num-
bered 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 depart-
ments; pianos in department A; talking ma-
chines in department 1>; records in depart-
ment C; sheet music in department D, etc.
\ o w , 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-
D a i l y Record of S a l e s By Departments, Month of
Date
Day
Cash
Descrip-
tion
Credit
Dep't
A
Dep't
B
Dep't
C
Dep't
D
Mon
Tue
Wed
' Thu
Fri
Sat
Total
f o r Week
This Form Shows What Sales Each Department Is Producing
vided for that department, then total the total that day in the second column. Add the amount
sales for the store and enter this amount in of deposits to the balance for the day before
the total sales column as provided on this form. and subtract the amount withdrawn and you
This form keeps you posted on what is being have the balance of money in the bank at the
done in each department every day of the year. close of the day. This amount is entered in
The second form is the "Daily Record of Cash, the third column under this heading and keeps
Accounts, Profit and Kxpenses." This form, like you posted on the condition of your bank ac-
the preceding one, provides for the recording count from day to day.
of this information daily. In starting in with
Now under the heading "Accounts Payable"
this form you will need to take an inventory of you will enter the amount of goods purchased
the amount of cash on hand, the amount of that day, or rather the total of the invoices for
your bank balance, the amount of your accounts goods purchased which you received that day
payable and accounts receivable; these amounts in the Iirst column and in the second column
R E G I S T B R
Piano8
Stock Make
Humbr.
Sales By Departments
Total Sales
STOCK
Date of
Entry
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 received that day
to the balance on hand the day before and sub-
tract 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 "Hanking Account" you
enter the amount of money deposited that day
in the iirst column and the amount withdrawn
Talking Machines
Cost
Selling
Price
Date
Sold
Date of
Entry
Stook
Nurabr.
Extend same rulings
for talking machines
as are shown for pianos,
and continue same for
records, r o l l s , or
other items necessary
to r e g i s t e r 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 book- are to be centered in their respective columns as you will enter the total amount paid upon these
keeper take the sales of each article off of the provided on this form on the line which reads accounts payable plus the discount and any
sales slips as they come in. But if you divide "Amount Brought Forward." At the end of allowances. Adding your amount of accounts
your store into departments then the salesman each day you will enter under the heading "Cash payable for the day to the balance for the pre-
will make out separate sales slips for articles on Hand" the amount of all cash received, in- ceding day and subtracting the amount paid you
sold from the different departments. For in- cluding money received on accounts receivable, have the amount of all accounts payable for at