FAQs

Are there any tax advantages to bartering?

Barter income is treated the same as cash income. There are no tax advantages or disadvantages to bartering. Trading should be considered a marketing tool, not a tax tool. Your barter exchange will provide your company with a 1099B at the end of the year for your taxes.

As with cash income, trading purchases that are normally tax deductible as business expenses are also tax deductible when purchased on trade.

How should I price my products and services?

Prices quoted to barter clients are the same as prices quoted to cash paying customers. Business owners are educated shoppers. Barter is simply a mode of payment-just like a credit card or cash. If your price is too high, clients simply won't buy.

What are the advantages of barter?

Generates New Business

With each transaction you can work through your personal Barter Representative. Your representative will refer other members to you and vice versa. By developing new business contacts you can cultivate markets that were in the past beyond your geographic reach.

Profit From Unproductive Assets

Often times in order to move your inventory or promote the sale of certain products and services, you have a sale and discount our products and services. Barter allows you to move your products and services through alternative means at regular prices. You don't have to have reduced profits to promote the sale of slower moving products and services.

Reduce Cash Expenditures and Increase Bottom Line Profits

Spend you trade dollars earned from sales instead of paying cash. Used constructively, barter can increase your bottom line profit.

How does bartering work?

Barter works by selling your products or services to an exchange member, instead of receiving cash, you will receive trade dollars (credits). The trade dollars earned can then be spent at other businesses who are members of the trade exchange.

The trade dollar system simplifies the old cumbersome barter system of the past which was limited to the exchange of products and services between two parties. Our system provides access to a wide multitude of businesses locally and statewide.

Biz 2 Biz Commerce does all the bookkeeping for your company's barter transactions and provides all the figures on a consolidated monthly statement. An IRS 1099B form is also provided for filing income tax. Additionally Biz 2 Biz Commerce provides online real-time 24/7 access to your trade account.

Once you become a member, you will be assigned a Barter Representative. Your representative will find the products and services you need, and will refer clients to your business. The representative-client relationship is important to maintain effective communication in order to provide a continuing resourceful service for your business.