The Bartercard concept uses an alternative, electronic currency (trade dollars) that is exchanged between members to pay for goods and services, instead of paying cash. Members then use these trade dollars to offset cash expenses within their business.
Trade dollars are a well-recognised and accepted method of payment in New Zealand. A trade dollar is the electronic trading currency Bartercard members use to transact with. For accounting, GST and Income Tax purposes, one trade dollar (T$1) is equivalent to one New Zealand dollar (NZ$1).
Trade dollars can benefit your business in numerous ways. Beyond the simple concept of exchanging good and services, Bartercard takes the barter system a notch higher by employing technology to provide businesses access to an expansive network of like-minded businesses. This allows businesses to exchange products and services and increase business sales by up to 10% within the first 12 months of being a member. Together with the help of experienced Account Specialists, Bartercard makes sure your business’ excess stock and downtime translate into increased sales.
Trade dollars are like real cash, and there is no difference between cash and trade dollars when it comes to recording sales as income or purchases as an expense or asset. Trade dollars are exchanged between members to pay for goods and services. Let’s say, for example, you need to buy something for your business; you can use your trade dollars to pay for it when transacting with other members in the Bartercard network.
On the other hand, the trade dollars you earn can be used in a variety of ways. You could benefit from the services of other members, such as catering services, computer repairs, carpet cleaning, hotel bookings, and so much more. All of these also expand your network, and keep your cash stashed in the bank. They can also be used as employee incentive and bonus payments and for property investments.
Bartercard provides plenty of opportunities for you to maximise your trade dollars. You can tap new markets, expand your network, reward your staff, and make sound financial investments without touching your cash bank, and for more information on what is Bartercard and Bartercard members please go to http://askbartercard.co.nz
