Cannabis growers and sellers face a unique challenge in the business world. They all work in a heavily regulated industry, and they all need dependable accounting services. Whether you just opened a dispensary or own a long-running cannabis company, nothing will kill your business like issues with cash flow and not handling your taxes correctly. You need an accounting firm that understands the regulations of your industry and the details of business tax services.
Cannabis Accounting Services Are Still a Growing Specialty
With every month that passes, the legal cannabis industry is growing larger. Legalization is spreading throughout California and across the country at a rate that demands attention—and with legalization comes regulation. A single cannabis business might have to comply with regulations for everything from farming and chemical manufacturing to food production and retail sales. A wide swath of laws govern all these activities, and as a business owner, you’re probably not going to have expertise in all of them.
At GJR Consulting, we see the cannabis space as an opportunity to flex our skills and increase our capabilities. We can help you with tax preparation for all the new laws that are setting the standards of your market. We offer cash flow management to assist your business in planning ahead for when and where your cash needs will occur. The consulting experts at GJR even offer to train your people on bookkeeping services like QuickBooks. We are here to aid your growing business and help you lay the groundwork for a successful future.
Accounting Issues for Cannabis Could Cost More Than Just Time
Cannabis small business workers might know which strand or edible to recommend for their customers, but few of them are experts in preventing long-term financial problems. Bookkeeping and creating accurate financial statements are a totally different skill set that takes familiarity with the federal level of legal marijuana regulation and knowledge of accounting tax planning. Businesses can make many common mistakes when they don’t have the help of professional accountants or bookkeepers.
- Confusing Cash Flow for Profits: It’s easy to understand how those outside the accounting world might confuse terms like cash flow and profits. Cash flow is the movement of your money in and out of the business from the beginning to the end of the month. Profits are the result of your revenue minus the expenses for a given period. Mixing up these two numbers can cause you to spend more money than you have and overextend your business.
- Recording Transactions in the Wrong Period: Professional bookkeepers, like the team at GJR Consulting, can do what is called ‘closing the books.’ Every month, we’ll figure out your different accounts, prepare financial records, and perform other tasks to close out your books for that month.
Without these practices, it is a common mistake to put new transactions in a previous period. This mistake will result in total balance adjustments that won’t match your bank reports or financial records. To further complicate things, it will impact your tax records and could cause some harsh penalties from the IRS down the line.
Cannabis Businesses Are Already Dealing With Heavy Regulation
Accounting services for cannabis share many of the same challenges as other regulated industries, but on an even larger scale. The cannabis market is already filled with enough sources of stress, and poorly executed accounting can impact an entire staff. Cannabis companies often employ a large number of people, and all of those people need to get paid accurately. You can delve deeper than just our advisory services and have us fully manage your payroll services. Your payroll figures can be made available online for you to access quickly and securely.
GJR Consulting also offers strategic planning for the future of your organization. We can help you create a long-term business plan for the growth of your business. We go in-depth with predictive evaluations of profits and roadblocks. We research market factors and financial planning. The more time you spend on the foundation of your business, the easier it is to grow. Do yourself and your business a favor: Take advantage of the accounting services at GJR Consulting.
To learn more about how GJR Consulting can help your regulated business, call us today.