Starting a cannabis business or do run a cannabis startup? The Senate Bill 94 (SB94), which was passed on January 1, 2018, as made it legal to cultivate, transport, manufacture and sell Marijuana in the state of California for recreational purposes. Whatever the size of your business, you should also think about its accounting part. Since handling bookkeeping or accounting is not your piece of cake, you should look for expert marijuana accounting solution providers on the market.
There are marijuana CPA’s who know the accounting for cannabis business operations. They can help you by keeping your business complaint and legally maximizing its deductions. They can handle bookkeeping and accounting parts of your business.
Let’s go through this post to understand how CPA’s can be your most reliable marijuana bookkeeper and accountant.
Here is how the accountants can help you:
1. Maintain Records
Keeping records of all your transaction should be your priority. You can make it easy by working with a Cannabis accountant firm. With its professionals, you can prepare and maintain meticulous records. This is one of the most important tasks of your business as these entire documents server as evidence how you allocate your Cost of Goods Sold deductions to Internal Revenue Code 471 that governs this.
2. GAAP Cost Accounting
To maximize and allocate your deductions, GAAP Cost Accounting is required to be consistently performed. The cannabis CPA’s have knowledge how to use this for the marijuana business. They can help you property allocate indirect costs to Cost of Goods Sold pursuant to IRC 471. This enables you to maximize the deductions allowed by the law for reducing your taxable income.
3. Cannabis Bookkeeping
A CPA firm can also perform your cannabis booking. Some companies can also help you review the bookkeeping works done by your own bookkeeper. They review the works and make the essential changes to ensure the proper Cost Accounting. This can also enable you to have maximum allowed deductions.
4. Payroll Services
An experienced and knowledgeable CPA has the potential to provide you with full payroll services with an additional Human Resource touch. They can assist you by delineating the proper job functions and setting up a daily process to document this. This enables you to allocate many salaries to Cost of Goods Sold legally, thereby increasing your deductions and lowering taxable income.
5. Tax Preparation
Professional accountants know how you can save taxes within the purview of IRC 280E. They have complete knowledge about tax planning and preparation and can prepare tax returns for the cannabis business. Furthermore, the accountant can handle state sales tax and state excise tax. They can help you choose the right business structure and facilitate these business formations for you. They are can modify and develop tax systems for you.
So, whether you are a startup or thinking of a cannabis business, cannabis CPA is also the right solution to handle your tax. It’s good to search a reliable accounting firm online as most of the top-class companies are available online.