Barter Is Good Business
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Barter is more than just a fair exchange of goods and
services between two businesses. It often provides financial and
marketing bonuses for both sides as well.
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It’s best to work through a trade exchange network, which
acts as a broker for its clients’ goods and services.
Such networks have thousands of clients, making them a viable source
for many business needs, such as office equipment and supplies,
printing, advertising, cleaning and maintenance services,
professional services, and travel and entertainment.
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All barter income is on the cash basis, and the IRS treats
barter transactions as income received for both accrual-basis and
cash-basis clients.
The value of trade dollars received must be included in gross income
for the tax year in which they are credited to the client’s account.
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Some of the goals barter can achieve are marketing advantage,
debt collection, cash conservation and lines of credit—particularly
when a business needs to borrow money to relocate, expand, or launch
a marketing program.
