Growing Your Cannabis Business with the Right Cannabis Accountant
Having an accountant with experience in cannabis accounting is the best way to grow your cannabis business and avoid major hindrances. Since there are more states moving towards legalizing medical and recreational cannabis, more and more cannabis businesses are being established. The issues faced by cannabis business is very much the same as the issues face by any other business. But the cannabis businesses have a unique set of challenges.
Getting a bank account is one of the basic problems of cannabis business owners. A lot of banks are reluctant to take cannabis business owners as clients since cannabis is still a controlled substance of a federal government. Although there are already guideline given by the federal government to banks regarding legal state cannabis businesses, banks are still hesitant to take the risk of having a cannabis owner as an account holder or client. If you have a cannabis accountant, then he can help you find the banking services that you need. He will try to find out with the lowers possible cost.
Generally accepted accounting principles are important for business success. It is also very critical to the survival of a cannabis business. It is like being examined under microscope if you are in this business. Every small detail matters.
The cannabis businesses are still under close monitoring by the federal agencies and their business practices are closely examined. The most dangerous agencies for the cannabis businesses are the SEC and the IRS. They can easily fine businesses and refer criminal charges.
Using GAAP is the only way to avoid serious consequences when the agencies examine your books.
Many business owners find taxes difficult. However, the IRS has made things really difficult for cannabis businessmen by limiting the tax deductible expense severely. But cannabis accountants can greatly help you in tax planning and tax compliance.
More than other businesses, the cannabis businesses have a much higher chance of being audited. Audits are not a pleasant experience, but when the agency auditing you feels that your entire industry is illegitimate, then audits can really be painful.
A good cannabis accountant can help you fully comply with audit requests and answer the unreasonable claims made by the auditor. You can survive the ordeal of an audit if you hire the services of a cannabis accountant.
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