Factors to Consider When Choosing a Cannabis Industry Accountant
Since the time some states started legalizing cannabis, it has created a lot of jobs for many people. Since cannabis distribution is a now a legal activity is such regions, it had to be subjected to taxes and other legal requirements, and this led to the emergence of cannabis industry accountants. Cannabis businesses are allowed under specialized circumstances, and their taxes are also different from other business entities. The factors mentioned below are vital in your search for the right cannabis industry accountant.
The primary factor is to understand what type of cannabis industry accountant you require. Several types of accountants are differentiated with the skill they have specialized to perform. For instance, a cannabis industry can be a bookkeeper or an enrolled agent. The bookkeeping accountant can help you deduce the business transactions and prepare a financial statement. Cannabis industry accountants who are enrolled agents are the legal representatives of the cannabis business on issues which are related to calculating and filing the taxes.
The second guide to choose the best cannabis industry accountant is to check that they have an impeccable 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.
Thirdly, you should choose a cannabis industry accountant who is readily accessible when the need arises. In most cases people prefer to work with only one accountant who takes care of one aspect of your business at a time. Therefore the accountant you select should be easily accessible when you need their services so that you ensure your business is running smoothly. A reliable accountant is the one who makes habit to provide open channels where his clients can contact him, and the accountant makes plans to help them even when the accountant is busy. 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. The cannabis business legal requirements might have some differences depending on the state where the company is located. A cannabis industry accountant should have experience and knowledge of the legal entities and requirement based on the laws of the state where your cannabis store is located.