What is Bookkeeping in the Cannabis Industry?
Cannabis is a complex and evolving field. While medical and adult-use marijuana consumption and businesses are becoming more commonplace, these products are still on the federal government’s list of controlled substances.
For this reason, it’s essential to have a cannabis CFO knowledgeable about the highly regulated cannabis industry and its unique tax code. These services assist with budgets, forecasts, financial strategy, treasury management, and operational analytics to optimize efficiency and minimize costs.
At Northstar, we offer specialized cannabis bookkeeping and related services. With our team of expert certified public accountants on your side, you can rest assured that your operation’s finances are in good hands.
Book a free consultation to learn how our cannabis-specific certified public accountants will guide your business with expert insight into local licensing rules and the Internal Revenue Service.
The medical marijuana space and recreational cannabis industries are some of the most complex and rapidly-growing sectors in the United States. As a result, cannabis businesses need specialized accounting and bookkeeping services to stay compliant with the IRS tax code.
Our cannabis clients understand that bookkeeping and tax services are essential to keeping their cannabis companies on track for success. Through proper financial reporting and maintaining proper accounting records, a cannabis business can thrive in this highly regulated marijuana industry.
Whether you operate in adult consumption or medical cannabis, Northstar is ready to help! Schedule a free consultation to learn all about how our CPA firm will scale your company with expert cannabis accounting and bookkeeping services.
Why are Proper Accounting Records Important?
Proper accounting records are essential for those operating in the legal medical marijuana and cannabis industry. As the federal government maintains the Controlled Substances Act, cannabis business owners must adhere to the federal tax code.
However, the support Northstar provides as a cannabis accounting firm ensures your operation never has to worry about an audit. Maintaining meticulous cannabis accounting records is a sure-fire way to keep your business operating, even with the legal marijuana industry remaining illegal at the federal level.
Accounting and tax records are essential for those buying, distributing, manufacturing, cultivating, and selling cannabis. In some cases, even ancillary services must have their books in order to steer clear of an audit.
The federal government maintains a close eye on the cannabis industry, and the only way to guarantee you’re prepared in case of an audit is with expert cannabis accounting practices.
Operating a business in the cannabis industry? Contact us now to book a free consultation and learn how our cannabis accounting services will support your company’s goals today.
Does the IRS Really Go After Cannabis Businesses?
Yes, the IRS targets cannabis CEOs and the cannabis businesses they lead. Section 280E of the tax code makes it easier for this to happen – and more difficult for legal cannabis industry businesses to obtain the same deductions as businesses operating outside of the marijuana industry.
Section 280E was added to the tax code in 1982; it prohibits businesses that sell a Schedule I or Schedule II drug from claiming any business expenses. This can be a major challenge for cannabis businesses, as most standard business deductions are not allowed.
Fortunately, there are ways to work around Section 280E. A cannabis business can achieve deductions and minimize its tax liability with the right guidance.
At Northstar, we have a team of experts who can help you navigate the complex world of bookkeeping in the cannabis industry. With our help, you can keep your business finances on track and in compliance with the IRS tax code.
To learn more about how cannabis companies benefit from our cannabis bookkeeping services, book a free consultation today.
Why Do Cannabis Businesses Use Northstar?
At Northstar, our team of experienced accountants is well-versed in cannabis bookkeeping. We understand the unique challenges that cannabis businesses face, and we’re dedicated to helping them stay compliant with the IRS tax code.
From calculating the cost of goods sold to facilitating a bank account for cash-only operations and finding credit unions for your operation, our ancillary services are designed to support your cannabis business. In addition, our team can help you prepare for an audit and even file past tax returns.
The legal marijuana industry comes with its own set of nuances and challenges, which is why it’s essential to work with an accountant who has experience in this field. Northstar has been providing cannabis bookkeeping services since the industry began, and we’re proud to be one of the leading providers of these services.
Cannabis businesses choose Northstar because we’re a full-service CPA firm with a team of experts who understand the complex financial landscape of the marijuana industry. With our help, you can focus on
At Northstar, we help cannabis business owners stay on top of their finances without the risks of working with generalized accounting firms. If you’re looking for expert cannabis accounting services to help you manage your finances, book your free consultation today.
Northstar’s Cannabis Bookkeeping vs. Generalized Accounting Firms
Northstar’s Outsourced CFO Services in a Growing Industry
Operating cannabis-related businesses means local and federal law will impact your operation. While you might be tempted to find a generalized CPA firm, business administration in the cannabis space is a highly specialized field.
Our outsourced CFO services focus on complying with state regulations and state laws that could impact small businesses operating in the cannabis space. We provide fractional outsourced CFO services to guarantee cannabis companies have access to the cannabis accounting and tax services they need with flexibility that promotes growth.
Scale-up as your cannabis operation grows. Or, if you need to cut back your expenses – as many cannabis businesses must – you can do so with our cannabis accounting firm.
At Northstar, our cannabis CPA firm focuses on scaling cannabis companies according to their needs. The services we provide to our clients operating in the cannabis industry remain flexible because we understand how this flexibility helps throughout the high and low months.
Looking for a reliable cannabis accounting firm focused on your success? Book your free consultation with Northstar to learn how we’ll grow your cannabis business today.
General Accountants & The Cannabis Industry
Regardless of whether your cannabis business is small or a massive company, general accountants serving the cannabis industry can be problematic. Even something that should be simple, like cannabis tax preparation, becomes more complex.
While certified public accountants can become knowledgeable about cannabis industry nuances, they must remain up-to-date on all state and federal legislation that could impact their clients.
The cannabis plant is not federally legal just yet, and it’s created a highly regulated industry that should only be navigated by certified public accountants that specialize in the cannabis sector.
Until the Controlled Substances Act no longer has such a profound impact on every aspect of the cannabis industry’s operations, one small error made by a general accounting firm has the potential to shut an operation’s doors permanently.
Providing accounting and bookkeeping services to the cannabis industry means understanding which state laws impact small businesses. But it also means staying on top of legislative changes, tax cuts, cannabis banking changes, and more.
Ordinary business expenses aren’t always applicable for cannabis industry business operators. And even with the National Cannabis Industry Association focused on changing the way legal cannabis businesses operate, this national association has a long way to go before general accounting for this controlled substance will suffice.
At Northstar, our accounting and tax professionals have decades of combined experience working with cannabis-related businesses. Book your free consultation to learn how our cannabis-specific certified public accountants will scale your operation in this budding space.
Northstar’s Cannabis Accounting Services
Northstar’s cannabis accounting services are designed to help cannabis businesses comply with the IRS tax code. Our team of experts has decades’ worth of combined experience helping the cannabis industry, and we’re dedicated to helping our clients thrive despite federal law.
Between tax services and other accounting services, Northstar stands out among other accounting firms in how we specialize in servicing cannabis businesses. We understand that generalized accounting services don’t suffice for our cannabis clients, which is why we maintain knowledge on everything that might impact you as a cannabis business owner.
Our mission is to ensure those operating in the cannabis industry have access to the accounting services they need, without being forced to work with accounting firms that aren’t well-versed in state and federal regulations.
Looking for cannabis-specific certified public accountants to guide your operation’s success? Book your free consultation now to learn how we’ll scale your business with financial reporting and data insights.
Getting Started with Northstar
If you need assistance with your cannabis bookkeeping, Northstar is here to help. We understand all nuances of the cannabis space, including accounting for the cost of goods sold, excise/sales tax, and more.
If you’re looking for reliable cannabis accounting services, Northstar is here to help. Our team of experts has years of experience in the cannabis industry and specializes in helping businesses comply with the IRS’s compliance demands.
Book a free consultation now to learn more about our services and how we’ll help your business grow.
