Accountants will always be needed in the cannabis world. The cannabis industry is constantly growing and more businesses are beginning to appear all around the country.
Distributors and cultivators are continuously expanding and are in need of proper bookkeeping and compliance consulting.
If you are considering a future in cannabis accounting or are currently an accountant looking for the right career, this industry could be the place for you.
Perennial Problems
A lack of access to normal banking channels (due to federally regulated banks not being able to process a sale of a Schedule I drug that is illegal on the federal level).
It is one of the serious problems that has been with the cannabis accounting industry since the beginning – while also making them natural candidates for the kinds of compliance and advisory services that accountants can supply.
Professional advice on how to manage a cash-only business through cannabis license consulting is critical to cannabis companies to be able to thrive financially and continue growth.
The tangle of state and local laws and licensing rules that govern the space in the absence of federal rules are both a major headache and a compliance advisory opportunity for accountants that are wanting to specialize in cannabis accounting.
New Hurdles in Cannabiz
Widely divergent state and local regulatory and licensing regimes, glitchy software, and staffing woes – the industry has confronted many day-to-day accounting and tax challenges from the start.
A number of these, like several state requirements to track the plant from the grower through to the consumer, represent areas where the knowledge and expertise of a professional accountant can prove especially valuable.
The major conflicting area that has always stood out is the Section 280E problem: Being that part of the Tax Code not allowing ordinary business expense deductions for businesses that traffic illegal substances.
Apart from imposing a major extra tax burden on cannabis accounting companies, it recently gained an even higher profile when the Internal Revenue Service added a marijuana page to its website, and inadvertently led some to a false conclusion.
A Bright Future
Even without federal legalization, having more states on board will help with the back and forth of confusing regulations around cannabis. There will be a growing need for cannabis license consulting services.
Different from other work environments, cannabis accounting is a growing industry with bright prospects and a built-in demand for high-value accounting and tax services.
More important, though, is the need to really gain expertise in the industry and in cannabis itself. Professionals who work in the cannabis space routinely say that cannabis-specific expertise and deep knowledge of all facets of the industry is absolutely critical.
Contact us today for a no-obligation consultation to discuss your cannabis business.