The legislative program of the Union Government at Ottawa will, according to some newspapers, probably comprise the imposition of a tax on the average income, and there are a great many photographers throughout the country who are interested in knowing what their actual incomes have been for the last year. It is an easy thing to know if a simple system of books is kept, an inventory taken in a dull season and a statement of business made up.

The greatest trouble is not in the actual keeping of a set of books, but in getting the photographer to realize the importance of such a business record. The income is, as a rule, overrated because profit is over-rated and expense under-rated. Many a man will insist he has made a good profit, yet for the life of him he can't say where the money has gone.

You can be quite sure that the man who says his business is paying him a good profit will have something tangible to show for it at the end of the year or he has been mistaken in the real condition of his business. In these trying times there should be no guessing about our profits and our expenses. We have made money or we have lost money, and a simple statement from a simple system of records will show how we stand.

The profit of a business cannot go back into the business except as the business is enlarged. If it is necessary for money to go into a business, it is expense. The man who says he is putting most of his profits into his business is mistaken, for the money he puts back is not profit unless it enlarges his investment or working capital and so enables him to do a larger business.

Mistaken ideas regarding costs are responsible for mistaken ideas regarding profits, and both are due to a lack of proper method, or no method at all, of accounting.

Your gross profit for a year is your inventory, figured at cost prices plus freight, plus your year's sales, minus your year's purchases - but this is Gross Profit. From this must be deducted all salaries, rents and other expenses to determine actual Net Profit.

Expenses of doing business include all salaries, including your own as manager of the business, advertising, delivery expenses, rent, heat, light, power, repairs and renewals of equipment, depreciation of equipment, insurance on stock and equipment, taxes and licenses, office supplies and expenses, miscellaneous expenses and losses from bad debts.

Ask your stock house for the booklet, "System for the Photographic Studio."

Cheer your soldier with the best news from home - your photograph.

Make the appointment to-day.

Better Business Methods StudioLightMagazine1918 42

THE PYRO STUDIO

Line cut No. 249. Trice, SO cents.

Better Business Methods StudioLightMagazine1918 43

APPROACH TO ADMINISTRATION BUILDING, KODAK PARK

STUDIO LIGHT INCORPORATING THE ARISTO EAGLE ESTABLISHED 19O1 THE ARTURA BULLETIN ESTABLISHED 1906 Vol. 10 MARCH 1918 No. 1