An experienced cannabis Accountant can assist you with growing your business and avoiding major roadblocks. More cannabis dealers are emerging because more states are on the way to legalize cannabis use for medical and recreational reasons as well as for commerce. Although cannabis dispensaries along with grow operations confront many similar issues as an emerging business has to deal with, they as well have a distinctive array of challenges.
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. Although there have been guidelines issued by the federal government to banking institutions regarding permissible cannabis state companies, most of them are not keen about taking the risk of accepting a cannabis business as an account holder and client.
An Accountant will assist you to find your needed banking services, at a minimal cost possible.
2. Utilizing GAAP to Stay Away from 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.
Several agencies of the federal government are actively checking on cannabis businesses and they are examining how they carry out their business. Two very dangerous agencies that cannabis businesses have to contend with are the SEC as well as the IRS. These two agencies can impose a penalty on the business and can also submit criminal charges.
By adhering to GAAP, it will help keep your cannabis business away from dire consequences whenever these agencies choose to check your books.
3. Getting Around Tax Traps
Taxes are forever complicated for any business. However, the IRS has even made things harder for the cannabis industry by severely restricting their tax deductible expenses. 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. Enduring an Audit
Audits are never easy, but if the auditing agency considers the as illegitimate in general, audits can even be more agonizing. The only way you might be able to survive the audit is when you have an Accountant on the team.
5. Familiarity with the Numbers
Accountants are trained in the calculation and interpretation of the major financial indicators for businesses. 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. At the same time, you will need their calculated guidance about making the best tax as well as investment decisions with regards to your business future.