Bartering as a means of making your cash flow go further
There is one thing all businesses face. Cash flow gets tight at times. How? Well, sometimes it's slow pays from customers and other times just bad luck as unexpected circumstances present themselves at what seems like the most inopportune times.
What's a small business to do when cash is low and your needs are high? Well, bartering is a time honored means of trading your goods/services in exchange for what your business needs.
What are the tax consequences? Both parties will recognize income and expenses.
Bartering may not be possible as a small business dealing with a very large one but I'll bet if you ask another small business about bartering for what you need, they just might be willing to trade with you. There are more formal organizations which part allow for bartering among its members.
I am a CPA in San Antonio and provide bookkeeping, payroll, taxes and more. We offer a free initial visit and look forward to serving your business needs.
Richard J. Garcia | 12/11/2011