A Firm Grasp of Accounting Core Skills
It is crucial to start at the basics, regardless of the niche you plan to participate in. With this in mind, your cannabis delivery service accountant should understand the core skills of the CPA, Enrolled Agent, and bookkeeper.
Qualifying as a CPA means this individual has taken a specific number of accounting-related courses, passed an in-depth exam, and has obtained a license in at least one state. CPAs can offer audits and reviews of your financial statements, as well as provide an educated opinion. Your CPA should be able to give assurances for your financial statements, ensuring third parties like banks or potential investors can rely on their statements when the time comes.
As a bookkeeper for your cannabis delivery service, your accountant will review all of your business transactions and piece together the information into a useful financial statement. This can also include preparing your state tax returns and other government filings.
The role of an EA, or Enrolled Agent, is to prepare tax returns and represent your business before the Internal Revenue Service. For someone to qualify as an EA, they would have had to pass a comprehensive IRS exam or have worked for the IRS at some point.
Regardless of the kind of professional you choose to work with, they should always have certain qualities. Look for attention to detail, cannabis industry experience, and a track record of keeping clients compliant with state and federal regulations.
Your legal agreements and business practices should be documented accurately in all transactions. You should have legitimate contracts to ensure your cannabis delivery service is not left open to any unnecessary risks. For instance, a valid loan agreement is essential for loans between two legal entities. You will also need a management services agreement if you are exchanging payments between two legal entities for management services.
Simply put, your accountant should understand how to do everything by the books to ensure your business adheres to regulations.
A Strong Professional Network
The right cannabis accountant for your cannabis delivery service will have a professional network composed of all sorts of professionals. Professionals know other professionals, and with this being the case, your cannabis accountant should become a resource you can use when you need another type of specialist.
Your accountant should assist you with minimizing costs, budgeting, complying with tax and financial reporting, and evaluating financial opportunities. But you will likely have other tasks that your accountant will not be able to fulfill.
For example, your accountant will not create legal entities or prepare legal documents. If this professional has a list of other professionals they trust, they should be able to recommend someone who can help with those needs.