According to a few estimates, the legal sales of Marijuana is projected to be more than USD 10 billion. By 2022, the sales may get doubled. This industry is witnessing high growth, and with so much money, you will surely need a cannabis accountant to manage it correctly. No matter what the size of your business is, accounting is helpful to it. However, you can save time by outsourcing the accounting, bookkeeping, and tax-preparation to save time and the profits. Cannabis business is a special one, and it needs proper accounting, and you should be careful enough to find the right accounting firm:
1. Professional and Willing to Work in this Industry
The accounting service provider has to be professional and should be willing to work with you. Numerous certified public accountants would not work with a firm in the cannabis industry. The regulations of the industry are such that they do not offer any protection to work in this new industry. Then few accountants are not sure how to deal with a lot of cash. They don’t know that the cryptocurrencies can impact the business taxes, so they are not very much inclined to work in this industry. Even banks in the US are not inclined to deal in the cannabis industry.
2. Expertise in IRC 28E Is Absolutely Must
While some accounting service firms don’t want to work with the industry. Then there are others who don’t want to develop the expertise required. Besides the regular tax laws, the cannabis accountant needs to understand the details of IRC 280E and the application in the cannabis industry. It is considered as Scheduled-I, a controlled substance in the US. Under this section, the IRS can stop the Cannabis industry from making deductions and claiming the business expenses which other businesses consider ordinary. It includes rent, advertising and the salaries of the employees as well. It is very much possible that with the growth of the industry, tax laws and policies may change; however, you may need cannabis accounting with specialized knowledge.
3. What Kind of Security Is Available?
In case of a security breach, it can compromise the personal data of your clients. You will surely not want to compromise on the privacy of the clients. When you take the services of the cannabis accountant, they use secure technologies and processes to ensure that all the data is safe. Thus if you keep the information away from your servers and in the client-server, you are making sure that all the information is secure.
4. Latest Technology
Good accountants make use of the high-tech software to keep them organized and manage the finances. The best in the business will upgrade their technology and will make sure that they have the latest software for the task.
In the End
These are few tips which you can use to choose the right cannabis accounting firm.