A simple yet effective solution
The likes of Xero, MYOB BankLink make it easy to keep track of your finances. Bartercard makes it easy too since it fits straight into your existing accounting systems without any hassle and is recognised as its own electronic currency. Trade Dollars are exchanged between members to pay for goods and services to improve cashflow (cash is conserved for other business expenses), reduce cash expenses (by using Trade instead) and attract new customers. This simple-touse system allows business owners to spend less time on their accounting and more time focusing on business growth strategies.
Think of Bartercard as just another way of paying for everyday items and business expenses. Trade Dollars are treated in the same way as cash and for all accounting and taxation purposes, one Trade Dollar is equivalent to one New Zealand Dollar. There are no special tax considerations when using Bartercard. This means when funds are in a Bartercard account, tax is paid in the same way it is for a cash amount in a normal bank account. Similarly, the accounting treatment of assets bought on Bartercard is identical to assets bought in cash; the depreciation rates and methods remain the same.
Monthly account statements are provided which are like a bank or credit card account except that the assets or liabilities are in Trade Dollars and not cash.
Bartercard members can receive account transactions in Xero every month. It’s easy to apply for direct feeds, simply add your accounts in Xero, download the application form, then sign and email it to Bartercard.
Working alongside more than 100 banks and financial institutions throughout New Zealand and Australia, MYOB BankLink automates and streamlines the accounting process for small business clients’ transaction data through to accounting practices. It couldn’t be simpler! By selling excess or slow-moving stock through the Bartercard exchange, members can receive Trade Dollars as payment and in turn spend the Trade Dollars on goods and services for their business.
For more information on how Bartercard can work with your accounting systems, download Bartercard’s free ‘The Accountants Guide to Bartercard’ eBook http://content. bartercard.co.nz/the-accountant-guidetobartercard-ebook, or consult your accountant.
All information contained in this article is true and accurate to the bestof the author’s knowledge. No liability is assumed by Barter card, authors or their employees for any potential liability suffered by any person relying directly or indirectly upon this article. It is recommended clients consult a Chartered Accountant from the Bart er card directory or their own tax specialist before acting on this information.