“I’ll Install your Electricity if you Give Me Five Laptops”!
So you’re having trouble finding the cash to pay for that new plumber? What about all those new office supplies that you must have in order to increase efficiency? It’s rough times out there, but there’s a way to get what you need by bartering- exchanging for something a supplier needs and getting paid in trade!
According to the International Reciprocal Trade Association about half a million small businesses exchange over $10 billion in sales each year using commercial barter exchanges. Bartering, the trade of goods and services without the exchange of money, is becoming the go-to survival method for businesses during rough economic times.
The concept of bartering has been around for years and years, but with today’s technology it is incredibly easy to get in on the action. There is tremendous growth in broker networks and barter organizations as the slow economy causes a rush in the barter economy!
“Even in modern times, bartering remains a practical choice for small businesses. It’s a cash preservation tool, something that’s especially useful in a tough economy.” writes Justin Martin from Fortune Small Business Magazine. “It can also help move unsold inventory or put idled staff to work. Done right, bartering can even drive new cash business.”
But, don’t think that just because there isn’t any cash involved means you can’t be taxed on it! Bartering income needs to be reported to the IRS, as the result of a barter transaction is considered a sale. To find out more about the required tax forms, check out “Proceeds from Broker and Barter Exchanges Transactions”.
What have you bartered for lately?