How to Choose the Right Cannabis Industry Accountant
Job creation and startups have been on the rise since the legalization of cannabis for medical purposes. Just like any other business, cannabis business owners have to undergo taxation processes and hence require a cannabis industry accountant. The legalization of cannabis in most states is done under exceptional conditions which also affects how the industry undergoes the taxation process. The following are some of the considerations you should consider when selecting a cannabis industry accountant.
First of all, you should know the kind of accountant you need for your cannabis business. For any business there are several types of accountants who specialize in different skills of accounting. Bookkeeping can be one of the services a cannabis industry accountant can offer, or they can also be enrolled agents dealing with matters of taxes. The bookkeeping accountant can help you deduce the business transactions and prepare a financial statement. Enrolled agents are accountants who are experts in matters of taxation hence can serve as business representatives in any legal capacity concerning taxes.
Secondly, you should choose a cannabis industry accountant with a strong work ethic. There have been a lot of concerns from legal institutions that the cannabis businesses could be a front for money laundering. Therefore it is hard enough as the industry is and hence you should not take any financial shortcuts to avoid legal action from tax collection boards. You should have in-depth interaction with the cannabis industry accountant and research about them with the aim of getting their sense of working within the legal limits of the busies.
The third consideration is to select a cannabis business accountant whose access is not limited. It is the standard practice for people to select a single accountant with specific skills to take care of your long-term business needs. Therefore the accountant you select should be easily accessible when you need their services so that you ensure your business is running smoothly. Although accountants are sometimes very busy, they should make a habit of availing themselves through methods of communication and make plans which they will keep. It can be a very poor business partnership between the cannabis industry accountant and the business owner if the account is nowhere to be found whenever the clients need them.
In conclusion, since cannabis is not federally legal, there are some state laws which govern the cannabis business and their taxation which your cannabis industry accountant should be knowledgeable. Different states which have legalized marijuana may have varying business protocols for the cannabis stores. You should ensure that the cannabis industry accountant you select is well informed of all the tax laws of cannabis in your region.
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