Having an experienced cannabis Accountant can promote growth for your business as well as help you to avoid major obstructions. 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. Cannabis dispensaries, grow operations, and some new business all have to contend with identical issues, and they have the same unique series of challenges.
1. Getting an Account with a Bank
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. While guidelines to banks have been issued to banks from the federal government on authorized state cannabis ventures, majority of banking institutions do not want to deal with the risk of having clients or account holders that are engaged in the cannabis industry.
An Accountant will assist you to find your needed banking services, at a minimal cost possible.
2. Making Use of GAAP to Avoid Trouble
GAAP or generally accepted accounting principles are a set of standards which govern businesses on how they are anticipated to maintain their books along with the account such as for depreciation, among other things.
A number of federal bureaus are aggressively observing cannabis businesses as well as scrutinizing their practices in the business. Two very dangerous agencies that cannabis businesses have to contend with are the SEC as well as the IRS. Both of them are not only able to impose a fine on businesses, but they as well can file criminal charges.
By using GAAP, you and your cannabis business will be able to evade any of the terrible consequences once these agencies go for an examination of your books.
3. Preventing Tax Traps
Taxes are never easy for businesses. However, the IRS has even made things harder for the cannabis industry by severely restricting their tax deductible expenses. An Accountant who is proficient in this industry can help in the preparation of your taxes together with tax compliance.
4. Living through 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. Understanding the Figures
An Account is educated to calculate as well as to interpret the important monetary indicators for a business. Cannabis is a competitive industry, and without the help of an Accountant, it may be difficult for you to understand what the financial strengths and flaws of your business are. Also, you need tactical guidance from them when it comes to making the right decisions for the prospect of the business that you have.