8 Ways Cannabis Accountants Can Save You Time
Are you overworked from worrying about sales, marketing, and the many tax complexities that come with running a cannabis business? We understand that the ever-changing cannabis laws make it difficult for the inexperienced to stay in compliance with their cannabis business taxes. With our list of 8 ways cannabis accountants can save you time, Redbud Advisors has the cannabis industry covered. Trusting our team to be your team will free up critical time for you to focus on other elements of your cannabis business.
If you're still not convinced about the value of hiring a full-service cannabis accounting firm, then we encourage you to read on because our insight will be an eye-opener for cannabis businesses of all types. It's time to move if you already use a full-service cannabis accounting firm and your accountant doesn't offer the services.
Let’s get started with our top 8 ways cannabis accountants can save you time so you can get back to the aspects of your business you are passionate about.
1. Peace of Mind
A full-service cannabis accounting firm provides you with a cannabis industry professional that understands your business and its specific accounting requirements.
Knowing that your cannabis business taxes are being handled by professionals provides you the confidence to focus on the other areas of your business that need your attention, freeing up your time and giving you peace of mind as a result.
2. Entity Structure
Another benefit you'll get from a full-service cannabis accounting firm is a solid understanding of the various entity types in the industry. This is especially important if you have cannabis businesses in different states.
Cannabis accountants will make sure that each entity type's individual need is satisfied and that the system is working to maximize deductions while staying compliant. This means your valuable time isn’t spent analyzing your business structure or deductions.
3. Implementation of Internal Control Procedures
A full-service cannabis accounting firm can assist you in ensuring that you have the right policies and procedures in place to align with your business structure and lower your risk of fraud.
Internal control procedures create accountability measures to ensure all documentation, audits, inventory, and approvals are completed on time.
Internal control measures are critical for day-to-day operations as well as tax filings. Once these procedures are in place you are able to spend your time on other aspects of your cannabis business.
4. Tax Return Preparation
Having a full-service cannabis accounting firm takes the guesswork out of 280E tax planning.
Your accounting firm will handle all your tax returns, both for your cannabis business and for you as an individual. State and local taxes are also included.
Your full-service cannabis accounting firm will be ready to represent your business if you ever receive a notice of audit. Your cannabis accountant will have access to the requested documentation and will handle the heavy lifting.
Throughout your relationship with your cannabis accountant, you will receive ongoing advice on how to avoid becoming a tax court victim. Think of all the time you will get back during tax season!
The advantages of hiring a full-service cannabis accounting firm far outweigh the disadvantages of using a one-size-fits-all or DIY solution.
5. Bookkeeping and Payroll
Do you process your own payroll? Do you do your own bookkeeping? These are two time-consuming and detailed roles within your cannabis business that you should outsource to an accounting firm that will use Generally Accepted Accounting Principals (GAAP) for all of your financial needs.
If you have payroll with another company, you can always switch, making your quarterly and annual payroll tax returns more efficient. Consider how much time you will have now that you're not consumed with payroll and bookkeeping.
6. Minimize the Effects of IRC 280E
Your primary goal as a cannabis business owner is to make a profit. When you work with a full-service cannabis tax firm, you won't have to worry about maximizing your deductions. How is this possible? This is handled by your cannabis accountant.
At Redbud Advisors, our clients will be educated on regulatory compliance and strategies to limit their exposure to IRC Section 280E. We work hard to maximize your Cost of Goods Sold (COGS) because we know it's the only deduction a cannabis business can take.
Because cannabis accountants are working hard to maximize deductions you no longer have to, freeing up more time for you to spend doing what you love.
Accountants in the cannabis industry take advantage of any opportunity to stay current on cannabis tax.
7. Up-to-Date on All Cannabis Tax Laws
If your arm is broken, will you go to the dentist? No, you will consult a medical professional. Attempting to handle the challenges of cannabis taxes on your own, especially if you are not a trained professional, is pointless.
Even as a cannabis tax expert, the Internal Revenue Service isn't laying out the red carpet or offering advice. A full-service cannabis accounting firm will be well-versed in IRS code 280E, IRS code 471, and relevant court cases!
Accountants in the cannabis industry take advantage of any opportunity to stay current on cannabis tax. This will guarantee more free time because you will not be constantly searching for the most up-to-date information.
8. Organizational Tools
Any full-service cannabis accounting firm is expected to be knowledgeable about cannabis taxes. However, having up-to-date tools should be a priority as well.
It is vital to save time for business owners that cannabis accountants have the ability to;
Assist with internal control procedures
Understand entity structure
Handle bookkeeping and payroll
Complete tax preparation
But to save even more time in this digital age it is essential to have readily available and up-to-date tools to assist in the completion of these tasks.
As a business owner, being able to remove these concerns from your plate and having up-to-date tools to access and upload your data ensures transparency and accountability. After all, we're here to help you stay compliant with your taxes while also saving you time.
The advantages of hiring a full-service cannabis accounting firm far outweigh the disadvantages of using a one-size-fits-all or DIY solution: Working with a full-service cannabis accounting firm gives you more time to focus on the aspects of your business that you enjoy.
8 ways cannabis accountants can save you time is essentially by handling all your tax needs and limiting your exposure.
Redbud Advisors is exclusively dedicated to serving the cannabis community. We provide a valuable service to all types of cannabis businesses by ensuring compliance with all current rules and regulations.
We focus on tailoring our services to meet your needs and giving straightforward, honest advice. This frees up cannabis business owners to focus on what's important. Now that you have an understanding of how much time we can save you we encourage you to get to know our specialized accounting experts at Redbud Advisors. Give us a call at 866-830-5144 or visit us online.