In my last post, we discussed how bartering could save you some cash and it can.  What I didn’t think about when suggesting it was that there are IRS rules about such things.  You guys have probably already thought of this but if you haven’t, following is an article copied from IRS with a few links to get you to additional information should you need it.  The IRS link above will take you to the original article.

Page Last Reviewed or Updated: December 16, 2009

Small businesses need to always be on the lookout for ways to save money.  What we can’t do is cut expenses to the point that it has an effect on our customer’s experience.  We all know doing this will only hurt our business.  So what can we do to save some cash but not effect our customer?

Let’s look back to the days of  the wild wild west.  When town meant a general store, a saloon and a blacksmith.  It meant trappers, seamstresses and farmers.  There were plenty of people to provide goods and services for others but not everyone had cash all the time.  Most could probably count on the general store to carry a tab for them until their next payday.  But, what if what they needed was not at the general store.  They had to find other ways to survive.  A common practice back then was to barter.  They would trade goods and services with each other.  Cash may or may not have been part of the equation but each received something that they needed.

Bartering is a great way to exchange services with another small business to meet a need for both parties involved that doesn’t necessarily require cash.  If the value of the services differs greatly, then at least the cash side of the deal could be reduced.  Steve told me that in his home town, a guy used to trade his services for free meals for him and his wife at their favorite restaurant.  How great is that?

If you have a hair salon and you need electrical work, think about bartering.  Maybe you are a web designer and need some construction done, see if there is something that can be worked out.  The possibilities are endless.  It’s just a matter of finding the right fit.  You have to find the person that provides what you need that has a need for what you provide.

Would you be willing to barter?  Let us know your thoughts or experiences on this.

For information regarding tax reporting for barter exchanges, please read this post.

Photo Credit:  pour paint