3 Things to Consider When You Are Hiring a Cannabis Accountant October 17, 2018 By: Elanora Brown 0 Any successful business relies on a team of professionals and advisors which you can depend on. A good Marijuana bookkeeper is crucial to the success of your business, and a right professional can beneficial for your company. Even if you have an accountant for any other firm, you will need who knows the regulation of the Cannabis industry. You need to bear in mind that rules and regulation of this industry do not offer much protection to CPAs; some skilled professionals may choose not to work with Cannabis business. When you are evaluating an accountant, you will have to make sure that the accountant has a good grasp of IRC 280E and cannabis accounting. 1. Understand the Difference between CPA, Bookkeeper, and EA Before hiring you should be able to differentiate between a CPA, the bookkeeper and also the Enrollment Agent. CPA is a certified public accountant, and they have to pass a rigorous examination to get the license in at least one state. Only a qualified CPA can audit, review and give an opinion on the business’s financial statements. The role of the bookkeeper is to review all the business transactions and then record them to get useful financial information. The bookkeepers can also prepare the state tax returns and take care of the other government filings. The “Enrollment Agent” may prepare the tax returns and represent the clients before IRS. 2. You Should Look For Honesty and Diligence When you are hiring an accountant in the cannabis industry you should look for some warning signs: The accountant is not responding- Skilled accountants are busy, and they need to balance their work so that all the clients are treated fairly. A skilled accountant may take longer to compete for a project but if he is not responding to your calls or keeps you informed it couldn’t help your business. The accountant takes Shortcuts-The cannabis industry is still highly regulated. While you may want fast progress but if you resort to quick fixes, then you make misleading statements or may omit information which is going to hurt your business and the owners. He is unable to understand legal entities-The fundamental accounting requires reporting of the financial operations by any legal entity. If the business owner has more than one entity they each one should have separate books and records should be kept for each legal entity. The bookkeeper has to understand that it is legal agreements and business practices which dictate how the transaction is recorded on the books. 3. You Should Choose an Accountant with Strong Network Professionals in the market know each other, and a good Marijuana bookkeeper will keep your interests in mind and refer you other professionals at the right time. In the End When you are hiring a Marijuana bookkeeper, you need to keep these things in mind to make sure that you can reach your financial goals. Tag: Marijuana Bookkeeper Previous post Cloud for Business: Why Should You Go For It? Next post How Is MPLS Helping Banks to Enhance Productivity? Elanora Brown As a freelance writer, I have written feature articles for a variety of publications. I love to write on thing that are directly or indirectly related to technology, lifestyle, Finance and Travel.