An experienced cannabis Accountant can assist you with growing your business and avoiding major roadblocks. More and more cannabis businesses have been surfacing as more and more states are moving towards the legalization of medical as well recreational use of cannabis and trade. Whereas cannabis dispensaries as well as grow operations have a lot of the same problems that new businesses need to contend with, their set of challenges are likewise unique.
1. Bank Account Opening
Among the very fundamental issues that cannabis businesses are facing is obtaining an account with a bank. With cannabis still being a substance that is controlled on the federal level, most banks are hesitant to take on clients who are engaged in the cannabis industry. There may already be guidelines issued by the federal government as regards legal state businesses for cannabis, still most banks are unwilling to deal with cannabis organizations as clients and account holders.
An Accountant will be able to help you in finding the necessary banking services at the least possible cost.
2. Making Use of GAAP to Avoid Trouble
GAAP, the acronym for Generally Accepted Accounting Principles, refers to a set of standards governing how a business is expected to save their books as well as account for items such as depreciation.
A number of federal bureaus are aggressively observing cannabis businesses as well as scrutinizing their practices in the business. A couple of the most precarious institutions for a cannabis business are the IRS and the SEC. These two agencies can impose a penalty on the business and can also submit criminal charges.
If you use GAAP in the cannabis business that you have, it is going to help you to steer clear of dire consequences, in case any of these agencies opt to inspect your books.
3. Getting Around Tax Traps
Taxes are never easy for businesses. But, things have been especially tougher for cannabis businessmen because the IRS by severely putting a limit as to which expenses can be deducted from their taxes. If you have a cannabis industry Accountant with enough experience, he/she will be able to help you out in tax planning and also tax compliance.
4. Living through an Audit
Audits have always been rough, but if you’ve got an agency doing the audit that views the entire industry as illegal, then audits can especially be painful. The only way you might be able to survive the audit is when you have an Accountant on the team.
5. Understanding the Figures
An Account is educated to calculate as well as to interpret the important monetary indicators for a business. With the cannabis industry being very competitive, you will need an Accountant to help you understand the strengths and weaknesses of your business as regards of its finances. Also, you need tactical guidance from them when it comes to making the right decisions for the prospect of the business that you have.