Bartering - Is it Right For You and Your Business?

Bartering is the oldest form of doing business. It iswhat is being exchanged.
typically known as the exchange of one service4. Only barter for services or products you need
or product for another of equal value; money isor will use. It does not do you any good to
not exchanged. In today's economy and with theengage in bartering if you will never use the
holidays approaching bartering may be somethingproduct or service; that is the same as wasting
you want to explore. The internet is host tomoney buying something you do not need.
bartering exchanges. Bartering exchanges act as5. Treat your exchange partner in the same
the broker for those wishing to engage inmanner you would a paying customer. Now is not
bartering. My tips below will help you make thethe same to scrimp on service or quality.
right decision whether bartering is right for you6. Keep careful records and consult with your
and your business.CPA or accountant on the rules of reporting
1. Do not feel pressured or coerced into engagingbartering. Bartering Exchanges require the use of
in bartering with another person or business.a 1099-B form. Individual bartering transactions
2. When engaging in bartering ensure you areare reported on Form 1040 Schedule C as
bartering for services or products of equal value.income.
If you feel you are getting something of lesserRemembering to apply the six items above will
value you need to speak up.alleviate the stress that may be associated with a
3. Before exchanging services write the exchangebartering relationship. Enjoy the holiday season but
down so that there is no misunderstanding ononly barter if it is truly the right choice for you.