Warnings for Participants in B2B E-Commerce

In the good old days, no business deal was complete without a handshake. You knew the people you were dealing with, visited their companies, and achieved a level of confidence based on the knowledge that the business partner was willing to look you in the eye and the contract was enforceable in court.

When you perform a transaction on the Internet, not only do you not get to have a face to face meeting, you may not even know in what country the customer or business associate resides, and you may not have any legal recourse on a breached contract if the contract is made with someone outside your country's borders.

To provide a certain level of protection, a number of insurance and B2B risk management programs are being launched, and you can look for more of this in the future.

In the meantime, there are several steps that can be taken to help apply good business acumen to an Internet B2B transaction:

  • Start out slowly
  • Do business with partners you know
  • Seek references when doing business with new partners
  • Do business with members of Netmarketplaces that are only open to preapproved members
  • Research the potential business partners through independent third-party sources
  • Send a trusted representative to meet the potential business partner
  • Beware of an offer that sounds too good to be true

You may like these other stories...

SEC, Big Four Chinese affiliates make progress in talks over audit documentsMichael Rapoport of the Wall Street Journal reported that the US Securities and Exchange Commission (SEC) and the Chinese affiliates of the Big Four...
Koskinen warns filing season could be most complicated yetImplementation of the Foreign Account Tax Compliance Act and the Affordable Care Act, combined with a tight budget and the possibility of Congress passing a late...
Curious as to what the fastest-growing accounting and finance jobs might be for the next several years? According to the new 2015 Salary Guide from staffing firm Accounting Principles, some of those jobs include bookkeeping...

Already a member? log in here.

Upcoming CPE Webinars

Oct 30Many Excel users have a love-hate relationship with workbook links.
Nov 5Join CPA thought leader and peer reviewer Rob Cameron and learn ways to improve the outcome of your peer reviews while maximizing the value of your engagement workflow.
Nov 12This webcast presents basic principles of revenue recognition, including new ASU 2014-09 for the contract method. Also, CPAs in industries who want a refresher on revenue accounting standards will benefit.
Nov 18In this session Excel expert David Ringstrom, CPA tackles what to do when bad things happen to good spreadsheets.