If you have been answering calls from cannabis entrepreneurs, you will know that they have a business plan. However, they don’t always know how you can apply it. Some people are confused about their finances and unsure how to optimize their profit, pay the correct taxes, or understand what the numbers mean for their overall profitability.
Services Required for Your Cannabis Business
You should remind a cannabis company’s owner that they want their money to be kept clean and focus on growth. They will need expert advice from:
1. They need to find a consultant that will help them meet their licensing criteria. This will increase their chances for being licensed to run a cannabis company.
2. An attorney that will assist them with compliance rules.
3. A security company will be hired to safeguard their cash and merchandise.
4. A bookkeeper, accountant and tax preparer will help you understand the most important aspect about your company’s finances.
Many of these roles overlap. An attorney could be hired as a consultant. An accountant might be able to assist businesses in cash management that will preserve their bottom lines.
Once they’ve shown them the terrain the conversation will shift to how you can assist them in creating a viable company structure. What tips do you have to help them create efficient inventory systems? Time-tracking software should be used to distinguish between tax-deductible and not-tax-deductible work. There are so many things to understand.
How does “have they books done” translate to?
“Can I have your books done for me?” It’s what cannabis industry believes is needed, even if that’s not always obvious. This is where we step in to help, by breaking it down.
It is important to help them realize that “getting your books done” doesn’t just involve reconciling every transaction in the firm. However, that aspect is essential to keeping the business running. It includes more than just comparing income to spending.
The type of company and how it is managed will greatly impact the services that a cannabis seller requires. Are they in need of systems and installation? Some other services your customer may require include:
1. For compliant, clean books, you will need to bookkeep. You also have to provide monthly or quarterly financial statements with commentary and analysis on trends.
2. A CFO (Controller) service provides comprehensive advice about enhancing processes, efficiency, profit, and profitability. It also monitors your finances and conducts regular financial assessments.
3. Tax preparation services to make sure you get the most from your tax refund.
Remind your customer that professional cannabis tax accounting services will provide them trust in compliance and will greatly assist them to expand. The combination of your and your client’s strengths will provide amazing results.
Accounting Line Item for the Cannabusiness Owner
Cannabis entrepreneurs are likely unaware that their accounting line item will be 1-2 percent of topline income, or that the exact figure may fluctuate depending on their services, levels, and add-ons. Specialist cannabis accountants, like yourself, may help to safeguard your client’s earnings by assuring compliance, doing reconciliation, and assisting with forecasting.