Accounting Issue

Week 56 Accounting Issue

To be competitive in business sometimes a competitor can be a friend. One way to help out each other is to barter between traders. For example, seller A may buy in bulk item A, seller B item B etc. Then both A and B can exchange their goods among themselves thus each have more variety of goods to sell. Win Win.

Sometimes goods are exchange not on 1 to 1 bases, for example 12 oz of morgan bar with 10 oz of PAMP lady fortune.

Due to time, location constraint, something one seller will help to collect the item on behalf of 3-5 people from the same seller. Many will not meet each other physically, thus it will involve some bank-in bank out transaction.

Since most of us are sole-proprietor, all these actions will raise many accounting question from IRS upon auditing. Thus, it's be best to have it recorded in email in case some question is asked upon you. It will be years before the question is asked and if you act then, for you

Worst come to worst, IRS said it is your sales since there are many cash deposit, $transfer into your bank account but you just helping your friend only. (TOLONG ORANG SAJA.) etc. Please pay the TAX.