Why Your Cannabis Business Needs a Cannabis Industry Accountant
Like any business, cannabis business owners require solid financial support and advice. What is different about the cannabis industry is the unique circumstances this industry faces regarding tax laws, regulations, rules, licensing, and more. Here, we present reasons your cannabis industry business will benefit from a specialized cannabis industry accountant.
Many cannabis-related businesses (CRBs) exist in the United States. Thirty-three states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, and Guam have legalized cannabis for medical use. Eleven states, the District of Columbia, and the Northern Mariana Islands have also legalized cannabis for recreational use as of September 2020. However, cannabis remains illegal at the federal level under the Controlled Substances Act (CSA).
State-level legalization of cannabis means the industry will continue to grow at an astounding rate. Even during the COVID-19 pandemic, the industry thrived. As a result of this boom, business owners are positioned for a prosperous future. Of course, a flourishing cannabis-related business depends on various factors, including managing the business's regulatory compliance, financial status, and taxes. Ever-changing laws and regulations regarding the use and sale of cannabis and related products can be challenging to understand. That's why it is wise to enlist the support of a qualified cannabis accountant. That way, you ensure that your business stays on the right track in the short term and has the foundation to survive and thrive in the long term as the company grows and laws change.
A financial professional specializing in cannabis accounting can help you navigate the often-uncertain waters of making a legal profit from cannabis and related goods and services. They can also provide needed guidance regarding the complex tax laws associated with the industry. The benefit to you as a business owner is that you can focus on running the business. At the same time, you know you have the support of specialized knowledge and skills in managing finances.
A cannabis industry accountant can help you with the following:
- Establishing long-term financial goals
- Monitoring financial details
- Ensuring legal requirements are met
- Assisting with critical financial decisions
They can also perform traditional accounting tasks like:
- Calculating payroll
- Creating financial reports
- Handling tax preparation
In addition, a specialized cannabis accountant can:
- Provide guidance on investment decisions
- Help manage cash flow
- Help navigate the business's legal structure and its specific tax requirements related to IRS Section 280E
As long as marijuana is classified as a Schedule I substance, any business operating in the industry will benefit from an accounting professional who understands the industry's rules and regulations.