It is a reality that no company, irrespective of how small or large it is, likes to hand over money to the tax collector. Legal marijuana businesses have to pay taxes in compliance with IRS Code 280E, which is the same category reserved for illegal drug traffickers. To ensure that your firm is in line with marijuana tax compliance, you should hire the services of a marijuana CPA that will keep up with you to understand where exactly your business is heading for. Every business is different from other in terms of finances so why would you hire an accounting firm that treats every tax return the same? You and your CPA realize that filing a tax return is probably the last thing you want to deal with, but it has to be done in any case. Having a professional accounting firm working honestly and tirelessly to keep your business tax-compliant is indeed a boon, especially for the small and medium-scale businesses. Your business should take advantage of all deductions and tax incentives available and it is only possible when you have an expert aid by your side. If your CAP is formed of people who have a rich experience and vast knowledge with tax compliance of all type of entities, you have nothing to complain really. Section 280E is the most crucial aspect of federal taxation for a company that is working under marijuana industry. Tax law and regulations, innumerable other sources of authority need to be understood very well to ensure that your company is marijuana tax compliance and paying as minimum tax as permitted.
Marijuana businesses have to deal with the burden of income tax besides additional burden of taxes and excises that is imposed on the cultivators and retailers of marijuana. Furthermore, a business should obtain all the necessary licensing with the state to avoid any run-in with the law authorities in the future. Not every accounting firm is willing to work with marijuana businesses because of the complex nature of this business as it is still considered ''illegal'' in many parts of the state. However, now there are some farsighted people who offer specialized marijuana accounting and taxation services.
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Each cannabis business is unique and so too its needs. A high end CPA firm realizes this fact and that is the reason why they do not choose to follow “one-size-fits all” route. Instead of choosing conventional methods, they use their expertise to design a tailored solution which caters to your specific needs. Cannabis business is still in its infancy and its tax rules and regulations are as complex as it can get. A high-end firm knows that finding an accountant well-versed with marijuana business is a tough task for new small business owners, hence their licensed and well-qualified Marijuana Bookkeepers are always striving hard to make your cannabis business more transparent and compliant with industry norms. Bookkeeping services include performing many tasks that begins with preparation of financial statements. It is a well-known fact that financial statements are critical for any business but they are still ignored by many businesses because they really have no idea what they are all about. And by the time they are able to understand its importance, they have already suffered heavy losses and tax penalties imposed by the state taxation authorities. But a good CPA firm takes it upon itself the all-important responsibility of teaching their clients to read their financial statements like a well-informed investor. CPA firm is your virtual financial assistant and you can spend more time in doing things that you really love to do while they ensure that you have easy access to your finances from any part of the globe at any time with a real-time view of your cash flow.
Marijuana Bookkeepers will ease your burden of tracking and filing of COGS reports as they manage to compile all your accounts linked with cannabis business. Setting up of real-time inventory reporting system relieves the business from the burden of IRC Section 280E with the help of cost of goods tracking system. CPA firms issue form 1099 to all of your contractors with relative ease. It requires a loads of paperwork and burden but in case you fail to issue them, you could be facing heavy fines and penalties by your local tax authorities. They keep your company compliant and your employees are well paid by them. |