Having an experienced cannabis Accountant can promote growth for your business as well as help you to avoid major obstructions. As more states work toward legalizing medical and frivolous cannabis use along with commerce, the number of cannabis businesses are rising at the same time. 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. Obtaining their Bank Accounts
Bank account opening is one of the main challenges in front of cannabis businesses. Because the substance is still controlled on the federal level, banks are mostly dubious about dealing with cannabis clients. 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. Exploiting GAAP to be Keep Yourself Outside of Trouble
Generally accepted accounting principles, or GAAP, are the established standards that regulates business on how they are supposed to keep the books they have and their account as well for things; for example, depreciation.
Various federal institutions are actively keeping an eye on cannabis businesses and checking on their trade practices. A couple of the most precarious institutions for a cannabis business are the IRS and the SEC. 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. Escaping Tax Traps
Taxes are forever complicated for any business. On the other hand, the IRS has especially made matters worse for a cannabis business by strictly limiting the tax-deductible expenses for them. An experienced cannabis industry Accountant can assist with your tax planning as well as 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. Knowing the Numbers
An Accountant has been trained to compute and figure out the main financial indicators for the business you have. 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. You also will benefit from the strategic guidance they can offer in order to come up with the best investment and tax decisions for what is yet to come for your trade.