Arthur Isaacson & Co., CPA
Why is joining a barter exchange beneficial to a business?
EXPERT RESPONSE: Joining a barter exchange is beneficial to a business because it helps you increase your business. The barter exchange will give your more exposure and in turn you will have business that you would not have had. It also helps with increasing your cash flow because you can pay for supplies or other things by using barter dollars instead of cash dollars.
How much business do you recommend a business earn through barter annually?
EXPERT RESPONSE: A business should take on as much business through barter as they can afford to handle. Obviously, barter is not a substitute for cash sales. It’s a means to supplement your business income and pay for expenses with barter dollars. In addition, if a business has idle staff or employees, it can provide work for its employees that they would not have had. It could serve to maximize use of your work force.
Any financial/accounting tips?
EXPERT RESPONSE: You will be paying tax on the sales that you do through barter. This is not free money. However, you will want to spend as much as you can for your business expenses so that you can reduce your tax bill at the end of the year. You might also want to consider paying some estimated tax if your sales through barter are high. Evaluate the pros and cons of joining a barter exchange with a knowledgeable accountant.
Is bartering legal? What does the IRS say about bartering?
EXPERT RESPONSE: Bartering is perfectly legal as long as you report the income which you generate from the bartering process.
What do you like about being a member?
I like to be a barter member because it generally means laying out less cash for a purchase.
What have you purchased for your family over the last couple of years?
I have purchased a central air conditioning system. I use a dentist on barter. My lawn service is on barter. I buy toner for my printers and copy machine on barter. My exterminator is on barter. And, of course, I go to many restaurants on barter.
How has barter benefited your business?
Barter has benefited my business because I make purchases for supplies on barter, and that will allow me to keep more of my cash dollars. I do use barter to take clients out to lunch and dinner. This allows me to discuss business over a meal, therefore making it a legitimate business expense, and allows me not to take away from my work day where I can generate fees.
Have you used BarterPays! for a special event or celebration?
I have used BarterPays! dollars to have a 90th birthday party for my mom at a great restaurant.
Have you gotten any new customers on BarterPays!?
I have gotten new business on barter. This is business that I wouldn’t have had if I wasn’t a member.