Finance: Bartering for Business Success

Ever think of bartering for services?

I had a SCORE client the other day, a photographer, who was in the midst of a business slowdown and having trouble paying the rent on her small studio. We discussed her options (which were not many) and decided she would go to the landlord and try to barter a photoshoot for her rent payment. Amazingly, it worked.

The first month rent was paid by the landlord using her for some brochure work he wanted done. The second month, she took photographs of his staff and locations. These 2 months gave her enough time to get some backlog work to get up and running again. In fact, it worked out so well that she bartered for some accounting work to get her books in order. There are some IRS concerns with bartering so it is necessary to contact your accountant to determine what paperwork is required. This is crucial as values of transactions need to be documented and recorded for tax purposes.

In this economy, bartering sounds like a very good idea. Ever thought of trying it? But, don’t forget to check with your accountant so you have the proper paper documentation. Think about it and let me know.

Betty Otte, SCORE Orange County
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4 Comments March 17, 2009