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 have different taxation procedure than other companies. The following are some of the considerations you should consider when selecting a cannabis industry accountant.
The primary factor is to understand what type of cannabis industry accountant you require. For any business there are several types of accountants who specialize in different skills of accounting. There are bookkeeping accountants and enrolled agents who have perform very different roles in a business. Bookkeeper accountants are well informed in deducing the raw data from your transactions to come up with financial information which can be used for other purposes such as filing taxes and other uses. Enrolled agents are accountants who are experts in matters of taxation hence can serve as business representatives in any legal capacity concerning 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. When choosing a cannabis industry accountant, you should interview them and establish their code of conduct.
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. For this reason, it is vital that the cannabis industry accountant you choose to cater for your business needs to be available even in unexpected situations or when you have any concerns. 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. A lot of business challenges can arise if the business owner has no reliable method of reaching the cannabis industry accountant to make unscheduled meetings or inquire for help.
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. The accountant whom you choose to take care of your tax filing and presentation should have first-hand knowledge of what is required depending on the laws of your region.