Barter Is Good Business
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.
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.
All barter income is on the cash basis, and the IRS treats
barter transactions as income received for both accrual-basis and
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.
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.