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Kannedy Bob
Barter and Income Tax A guide for businesses engaged in barter transactions There isn't any doubt that starting a business and managing its day-to-day operations can be a costly endeavor. Quite often, business owners find that the company's budget simply doesn't stretch as far as they might have hoped, leading to diminished success and financial woes. There is, however, a way that businesses can drastically cut operational costs and allow for their companies to thrive. By bartering, either with other business and individuals, or via an indirect barter exchange network, companies can receive the goods and services that they need without having to spend cash. In order to get a better idea of just how bartering can be beneficial, let's take a closer look at the two most common types of bartering: direct and indirect barter. This free book explains how to deal with income tax from barter transactions, how to correctly record barter transactions and how to ensure that bartering has no negative effect on your end of year tax bill. Ormita is the world's largest multilateral reciprocal barter exchange system, with subsidiaries that conduct business worldwide and offices in 23 countries. Bartering: -Allows a business to swap / exchange their own product or service for things they need -Reduces the cash outlay of the business -Every purchase is matched with a new sale -Purchase of international advertising, trade shows, translation, legal and accounting services etc -More sales result in more customer feedback and less cost for “give-away” samples Barter Provides a Mechanism to Improve the Balance Sheet -Goods acquired using barter are still counted as an increase in the assets of the business. -Bank capital guarantees reduce available lines of credit - barter capital does not. -Allows the organisation to meet assets and/or equity ratios for other (cash) subsidies and loans. -Lets a business obtain future international lines of credit guaranteed by countertrading operations. http://www.barterforadvertising.com http://www.barterforprinting.com http://www.agriculturalbarter.com http://www.governmentbarter.com http://www.ormitacorporate.com http://www.ormita.com http://www.barterforequity.com ------------------ This book does not constitute legal, financial, taxation or accounting advice of any sort. Readers are requested to seek professional advice from their own accountants, tax attorneys or other professionals. Ormita will not be held liable, under any circumstances, for any errors or omissions in this document. The contents of this book are copyright © 2013 Ormita Commerce Network Limited (“Ormita”). You may freely distribute copies of this publication provided that you do not alter the layout or design in any way including, but not limited to, removing the Ormita logo from this document.
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