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. Today the number of cannabis businesses are increasing and this is because more and more states are legalizing the use of medical and recreational cannabis. The cannabis business is a business just like any other that faces many issues that all other businesses face. Cannabis businesses have challenges that are unique theirs.
if you are a cannabis owner, one of your problems is how to open a bank account. A lot of banks are reluctant to take cannabis business owners as clients since cannabis is still a controlled substance of a federal government. Many banks dont want to take cannabis business owners as clients despite having federal government guidelines written to banks for these types of businesses. This is where the job of a good cannabis accountant comes in; he will be the one to find good banking service for your needs. Your advantage is having an accountant who will try to get the lowest possible cost for you.
Generally accepted accounting principles is important for business success. It is also very critical to the survival of a cannabis business. This is because when you are in the cannabis business, it is like operating under a microscope. They look at every small details of the business.
The cannabis businesses are still under close monitoring by the federal agencies and their business practices are closely examined. The SEC and the IRS are the most dangerous agencies for the cannabis business. 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.
Taxes are complicated for most businesses. However, the IRS has made things really difficult for cannabis businessmen by limiting the tax deductible expense severely. If you hire a cannabis accountant who has plenty of experiences in the cannabis business, he can help you with tax planning and tax compliance.
The chances of a cannabis business to be audited is really high. You can have a painful audited from an auditing agency if he does not feel that your industry is legitimate.
A good cannabis accountant can help you fully comply with audit requests and answer the unreasonable claims made by the auditor. A cannabis accountant can help you survive the ordeal of an audit.
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