Instead of closing the operating accounts each year, it is sometimes wiser to carry forward the balance from year to year, particularly in the case of a young orchard not yet in bearing. These totals may appear separately in the balance sheet in some manner which shows so clearly the nature of the asset that no one can be misled. While such a course increases the amount of the asset on the books, it represents actual expenditures, and is quite distinct from an increase based on an estimated enhancement in value.

A common difficulty in preparing annual statements showing the exact conditions arises from nature's indifference to fiscal years. Peaches will ripen in early summer, apples in the fall, and oranges in the winter; so that, whenever a balance sheet is taken, there is a probability that there will still be on the trees some unpicked or unripened crop on which it is extremely difficult to place a value. The Income account is, however, entitled to such credits when they exist, and a conservative estimate of any ungathered crops should be included in the account.