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Benefits of Bartering

A barter arrangement’s most obvious value is in significant cash savings, as well as reduced financial paperwork but there’s more. BarteringSmarterBusinessBanner also:

  • Generates sales/profits with faster inventory and service-hour turnover.
  • Creates new customers by bringing together parties who may refer others.
  • Moves surplus stock.
  • Eliminates additional advertising and deep discounts.

Whether you are starting or growing a small business, using a barter system preserves working capital to apply to your venture. Also notecalled in-kind trade, trade-outs, counter-trades or contra agreements, this type of process can fund day-to-day operational expenses without cash outlay.

By definition, bartering is the exchange of goods and services for other goods or services. The International Reciprocal Trade Association estimates that $8.25 billion bartered items exchanged hands in 2004. Even so, some business gurus believe companies are not maximizing their own barter possibilities.

When to Barter

A barter system can involve swapping big-ticket items, but many small-company owners stick with products and services required for routine operations. These include:

  • Office supplies, printer/toner cartridges, food service, renovations/repairs.
  • Printing, computer products/services, trade show booth space.
  • Communications, Internet access, cellular phones, electronics.
  • Staff incentives and community sponsorships.
  • Financial services, legal advice, health care, advertising or promotion.

How It Works

The barter process, unlike a cash transaction, requires no exchange of money between trading parties. However, barter dollars are identical to real dollars at income tax-time, so owners must report the fair market value of goods received on their tax returns.

In fact, entrepreneurs should treat barter revenue like any of their other business activities, making sure to:

  • Keep good records.
  • Specify the retail value of products being exchanged.
  • Work with a good barter exchange.
  • Consult a tax professional, if necessary.

Barter Exchanges

A barter exchange is an organization that facilitates trade between group members. Exchanges also act as banks, recording transaction values and member-account activity.

Barter exchanges are currently in operation, giving unprecedented exposure to potential new customers through:

  • Listings in online and other directories.
  • Member recognition through barter newsletters, catalogs and product expositions.
  • Fellow network-member referrals.

When selecting an exchange, contact an industry trade association such as Department Trade and Industry for a list of member groups. Then, do some research:

  • Contact colleagues and clients for references, and check with the Better Business Bureau, Security Exchange Commission and theimages Chamber of Commerce for satisfaction ratings or complaints.
  • Make sure an exchange offers products or services that fit your needs.
  • Consider size. Larger exchanges can provide better opportunities to make appropriate trades. Upon gaining a bit of experience, consider joining additional exchanges to broaden your options.
  • Evaluate membership dues and other fees.

Let the Bartering Begin

By observing a few rules, doing some homework and applying a good measure of common sense, most business can reap the rewards of bartering. A better cash flow, new business and a fresh marketing path are within easy grasp.

Source http://bbvacompass.com

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Please Make Your Payment of Your Transaction Form Through:

Banco de Oro (BDO)

Account Name: Parlance Business Solution International Incorporated

Account Number: 7108008314

Code: BNORPHMM

Bank of Philippine Island (BPI)

Account Name: Parlance Business Solution International Incorporated

Account Number: 1731011474

Code: BOPIPHMM

Please send us your complete requirement indicated in the Transaction Form. For cash deposits, the applicant is required to fax or email a bank transaction slip indicating intended recipient and contact details for sending of official receipt.

Business Address – Unit 509 Cityland 10 Tower 1, H.V. Dela Costa St., Brgy. Bel-Air, Salcedo Village, Makati 1227 Philippines

  • Telephone:  +632-840-5565  +632-399-2429
  • Mobile:     +63-926-249-9483  +63-918-959-2405
  • Fax:              +632-519-7469
  • Email: barterpilipinas@gmail.com

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Parlance Business Solutions International, Inc. is an accounting outsourcing firm who provide business solutions in terms ofCapture accounting, finance, bookkeeping, payroll, taxation and other entrepreneurial experience, the proponents are continuously developing business methodologies guided by the highest standard of quality, integrity, competence and professionalism combined with cutting edge information systems technology – professional services that are worthy to be offered to serious and best businesses and entrepreneurs. (http://www.parlancebiz.com)

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