1. The Exchange Officer can spend but a small portion of his time in the Exchange, and yet he must have accurate knowledge of what the business is doing. It is therefore essential that our records shall show accurately and concisely all the data that are necessary to a full understanding of the condition and operations of the business.
2. It is not enough to have a system which will enable us to render a clear statement at the end of the month, we should be able to close our books at any time and get out our financial statement in the minimum time.
3. Our system should be such as to minimize the possibilities of peculation. It is often said that there is no system which cannot be beaten, but there are systems which cannot be defeated for any great length of time. Therefore, our system must reduce to a minimum the time during which graft or theft can work undisturbed.
4. The system must be so simple that it will not require exceptional ability at any point in order that its provisions may properly be carried out. This makes it easy to break in new clerks, and enables them to perform their duties in a more satisfactory manner.
5. The system must not be so cumbersome that it will delay the making of sales. This is highly important. Every reader of this will undoubtedly have vivid recollections of his experiences in department stores, “waiting for change.” It is better to lose a dollar than to disgust our customers and drive them elsewhere.
The above requirements cannot but cause our system to be somewhat more expensive than that used in a “one-man store”. In the latter instance, as a proprietor will not cheat himself, the third requirement has, in general, no effect. The other requirements, however, will still hold, and even gain in importance. How many merchants have we seen who thought they knew all about their business, but who in reality knew very little. They did not even realize that slipshod methods curtail credit and beget losses of various sorts.
In describing this system we shall take up the various features in the order in which they will be found easiest to install. For instance, charge sales are discussed first because, regardless of the system of handling these sales that may be in use by any Exchange, it will be found that to change to the system here described, before changing any other part of the system, will cause no confusion in the other books. In other words, if your system be changed according to the order in which the different parts are discussed herein, you will find that you have gradually installed a system which may be entirely different, yet you have caused no confusion in your books by the transition.