Factors to Consider When Choosing a Cannabis Industry Accountant
Job creation and startups have been on the rise since the legalization of cannabis for medical purposes. Cannabis industry accountants emerged to solve the problem of the special taxes and legal conditions which are present in the cannabis business. Cannabis businesses have different taxation procedure than other companies. The factors mentioned below are vital in your search for the right 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. For instance, a cannabis industry can be a bookkeeper or an enrolled agent. 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 factor to remember when selecting a cannabis industry accountant is to ensure they have a firm work ethic. Cannabis distributors will give you an account of the suspicion of criminal activities on their line of business. 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. In most situations for the benefit of the business, people contract one business accountant for a single purpose over an extended period. 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. 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. 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.
Finally, you should select a cannabis business accountant who is aware of all the legal requirements of cannabis businesses. There are particular taxation protocols for cannabis businesses which might vary from one state to the other. 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.