By cat
PHOENIX, AZ — (MARKETWIRE) — 08/25/10 –
When the economy takes a nosedive, few businesses have anywhere to go but down. They struggle to sell their products or services, are forced to eliminate staff and, ultimately, may end up closing their doors forever. But one industry remains a force to be reckoned with, even in the worst economic climate: barter exchanges.
“We’re one of the few businesses that actually thrives during an economic downturn,” says Catherine Cohen, CEO and marketing director for BCL Soft, a company that offers barter exchange management software and specializes in helping new exchanges get established. “And we also lend a helping hand to other businesses that are fighting to survive by saving them cash, increasing their profits and decreasing their cost of doing business.”
Entrepreneurs evaluating potential business opportunities face several options: starting from scratch, purchasing an existing business, becoming a franchisee or joining a multi-level marketing (MLM) business. While the safety of an established franchise may be enticing and the promise of residual income that comes with MLMs seems irresistible, Cohen would argue that barter groups have a leg up on the competition.
“With barter, you’re in business for yourself, but not by yourself,” she says. “The start-up cost is low, you don’t answer to a corporation or franchise, and we give you the tools you need to run a successful barter exchange. You’re not forced to get your friends and family to use some ‘miracle’ product. You are working with existing businesses to help them conserve cash and attract more customers.”
As anyone who’s used a barter exchange knows, the software is the tool that makes all the difference. “Our software, Barter21, is a ready-to-deploy barter and trade application,” says Barry Cohen, COO of BCL Soft. “This cutting-edge trading platform, developed by Luther Monson, our chief technical officer, allows clients to easily run their exchange and increase transactions both within and outside their exchange members. It features on-demand bartering with an online trading floor as well as a real-time directory and search information. This easy-to-navigate solution is all you’ll ever need to run and manage your exchange.”
BCL Soft not only provides the Barter21 exchange platform, but also teaches clients how to use the software, how to train their staff, answers questions around the clock, helps with IRS forms, offers tips to gain membership and provides marketing materials.
For more information, visit www.bclsoft.com
Barry Cohen 623.242.2537 info@bclsoft.com
By Barry Cohen
Industry-first upgrade designed to substantially increase trade volume
PHOENIX, AZ — April 26, 2010 — BCL Soft (http://www.bclsoft.com) has released a major update their popular Barter21 barter exchange management software. A complete change from the barter industry standard software, these enhancements are designed to help increase trade volume. “We are making it easier for members of the exchanges using our software to find not only the products or services they were looking for, but also to find complementary products and services,” said CTO and Lead Programmer Luther Monson. “Whether searching through the Member Directory or looking on the click-to-purchase Trading Floor, the new layout and design associates similar items, leading to increased barter activity.” In addition to those layout and functionality changes, barter exchange owners now have the capability to select and rotate featured items throughout their website, enabling them to move and promote items that could otherwise sit idle.
A Different Way to Think About Business Categories
Barter21 has always been an industry leader in their approach to business categories. They were the first software to match Member Directory and Trading Floor categories, making it easier on both members and exchange brokers to place businesses into the Directory and items and services onto the Trading Floor. And in a new twist, rather than adding more categories that are very specific, Barter21 has substantially reduced the number of categories and made each heading much broader. This is contradictory to the industry norm for barter exchange management software. “Placing a member into a broader category rather than multiple categories that are very specific gives them the greater exposure. Rather than a specific category like ‘Italian Restaurant’ we’ve put all the restaurants together into one category. So for the exchange that does not yet have an Italian Restaurant perhaps their member will choose another place to eat in the same category. Instead of a lost sale, all the members will get greater exposure. Greater exposure leads to more sales and trade volume. More trade volume means greater profits for the barter exchange.” said Barry Cohen, COO of BCL Soft.
Catherine Cohen, CEO of BCL Soft, continued, “The combined power of a redesigned Trading Floor, a more robust Member Directory that shows not only the member information but items that member has on the Trading Floor, and a more intuitive category structure is sure to have a positive impact. The members will have greater ease of use and that will reflect well on the bottom line of barter exchanges using the Barter21 platform.”
Launched in February, 2009, Barter21 is the fastest growing barter exchange management software in the modern Barter & Trade industry. Barter21 specializes in assisting start-up exchanges as well as being able to handle the greater trade volume of established exchanges.
By Barry Cohen
As the owners of Premier Barter, a local barter exchange in Phoenix, AZ, it is not unusual for us to hear from potential new members that they would love to barter so they don’t have to pay taxes on their transactions. Their smile typically fades away when we explain to them that the IRS treats barter the same as cash, and that barter exchanges are required to report all sales via 1099-B forms. Of course, after we explain the benefits of barter and how to use it as a tool to generate more cash business, their smile returns.
As a provider of barter exchange software, BCL Soft’s Barter21 processes the 1099-B’s for our member exchanges. Not all providers do this, and if they do it is typically done wrong.
This is our first year in business and we knew we needed to set up our process right from the start. We thought the way the other barter exchange management software providers submitted 1099-B information was fine. After all they had been doing it for years. But when we did our research we found the information other software providers sent to the IRS was incomplete or just wrong. What does that mean for your exchange? It means your exchange could be flagged be the IRS. And if you are audited it could mean heavy fines for you.
Here are some things that U.S. based barter exchange owners need to know:
- If your barter exchange had a total of less than 100 transactions in the year, you are not required to report to the IRS - although it is a good idea to do it anyway.
- If a member of the exchange did a minimum of $1.00 in barter transactions, you must report the sale(s) on form 1099-B.
- All business entities must receive and report 1099-B’s. Sole proprietors, LLCs, and corporations. No exceptions.
- Corporations and LLCs get a single aggregate total 1099-B for the year.
- Sole proprietors are required to get one 1099-B for each and every transaction.
- The due date for furnishing statements to barter exchange members is February 15.
The question all barter exchange owners and members must ask themselves is this – Are my earnings being properly reported to the IRS? If not, why not? The last thing any of us want to do is throw up red flags to the IRS. Check with your software provider. Find out if they have been following the rules or making up their own rules. If they make up their own rules – it is your exchange that will pay the fines to the IRS, not your software provider.
Form 1099-B is very different from a standard 1099. Don’t take my word for it. Visit the IRS website and discover all the requirements for barter exchanges. http://www.irs.gov/businesses/small/article/0,,id=188094,00.html. Pay close attention to the Penalties section.
With all of the research we did, I have to give some credit to people for helping us along the way:
- Ron Whitney of the International Reciprocal Trade Association – www.irta.com – for answering simple and complex questions, and settling an argument or two.
- Kathleen R. Lindquist, CPA – www.kathleenrlindquistcpa.com – CPA extraordinaire.
- Scott Cain of Evergreen Exchange – www.evergreenexchange.com – Thanks for reminding me of the 100 transaction rule!
Reference document http://www.irs.gov/pub/irs-pdf/i1099b_09.pdf
Happy Bartering!
