Running a cannabis business can be difficult when tax laws don’t favor you, but an accountant who specializes in cannabis can help you with that!
Here are top 3 reasons why you must consult marijuana accountants:
For Their Expertise
CPAs undergo extensive training to achieve their level of expertise. It is only after a certain number of accounting courses, rigorous examinations and being licensed in at least one state that CPAs are qualified enough to begin officially practicing in the cannabis industry. Thus, cannabis CPAs have a strong grasp on accounting, taxation, finance, and cannabis and its operations.
There are plenty of tax return preparers in the accounting world who aren’t necessarily CPAs. Moreover, not all CPAs are well-versed with the cannabis industry and thus cannot offer the right advice to their clients. CPAs who don’t have full understanding of tax law pertaining to cannabis may in fact do a great disservice to their clients and misdirect them which can further damage their businesses. This is why cannabis CPAs are sought for advice and solutions on marijuana bookkeeping, tax preparation and planning, and accounting related matters.
Having Your Documents Reviewed & Organized
With a cannabis accountant by your side, you can be sure to have your financial statements prepared and managed the way they should be.
CPAs make sure all their clients’ important documents pertaining to financial, taxation, accounting, legal insurance, and banking aspects are reviewed and organized for easy access. This is especially important for companies when they interact with potential investors, auditors, lenders and the IRS.
Dodging Tricky Tax Laws
Filing tax returns can be very taxing, especially for those in the cannabis industry. This is because marijuana retailers are subject to huge tax burdens due to cannabis being classified as a Schedule I controlled substance under Section 280E of the IRC. This puts cannabis retailers at a great disadvantage, because they are barred from making the same types of deductions on their expenses that most other businesses are allowed.
CPAs and financial firms can help with this. Trained experts in complex tax laws are crucial for the marijuana industry as they can help companies minimize the amount they owe to the federal government. Furthermore, they also help businesses who want to ensure that they abide by the law while maximizing their profits.
The strategic tax planning and budgeting techniques provided by cannabis CPAs can help marijuana businesses thrive with maximized profits and greater deductions. This makes them an essential part of the cannabis industry as they can help businesses navigate their way around Section 280E.
Sandy Suchoff, CPA is the Founder and principal of Lefstein-Suchoff, CPA & Associates, LLC D/B/A The Canna CPAs. Suchoff has been featured and interviewed on MSNBC, FOX News, and Tune In Business Talk Radio as a tax advisor, as well as ONR Oklahoma PBS TV, Chasing News on FOX & WOR, KRQE 13, Cannabis Radio, Purple Haze Radio, and Cannabis Tech & Today as an advisor on cannabis tax and accounting.