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. But the cannabis business is still a business and just like any other business, it faces many issues that these other businesses also face. However, the cannabis businesses have their own unique set of challenges.
Getting a bank account is one of the basic problems of cannabis business owners. The reason for this is because cannabis is still a substance that is controlled on the federal level, many banks are doubtful whether to take cannabis clients or not. Many banks dont want to take cannabis business owners as clients despite having federal government guidelines written to banks for these types of businesses. A good cannabis accountant can help you find a good banking service for your needs. He will try to find one with the lowest possible cost.
Generally accepted accounting principles are important for business success. It is also very critical to the survival of a cannabis business. If you are a cannabis business owner, all your operations are under a microscope. They look at every small details of the business.
Federal agencies still closely monitor the cannabis businesses and closely examine their business practices. Cannabis business owners have to always watch out for the SEC and the IRS. If they find something amiss, they can fine businesses or charge them criminally.
When these agencies decide to examine your books, the only way to avoid serous consequences is to use generally accepted accounting principles or GAAP.
Taxes are complicated for most businesses. Cannabis businessmen have been given a difficult time by the IRS by limiting their tax deductible expense greatly. 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.
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.
With a good cannabis accountant you can fully comply wit the document requests from the audit and can challenge their unreasonable claims. A cannabis accountant can help you survive the ordeal of an audit.
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