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4 Things to Look for in a Cannabis Accounting Firm


 

It’s no secret that running a cannabis business entails a lot of work. And sometimes, outsourcing some functions such as cannabis accounting makes more sense. It allows you to save time and focus your energy on other parts of your business.

In addition, outsourcing cannabis accounting assures you that you have access to quality accounting professionals. Accounting firms usually hire top-notch accountants with several years of experience and expertise in the industry. They already know the ins and outs of accounting, and they can do the work for you in the most effective and efficient way.

But as everything in business comes with a cost, hiring a cannabis accounting firm is also a tough decision to make. The benefits are considerable but if you choose the wrong firm, it might not go as well as expected and you might end up losing more. If you’re thinking of outsourcing your cannabis accounting, here are some criteria that can help in selecting the right firm for you.

Expertise

Expertise is a big factor to consider when outsourcing your cannabis accounting. Of course, you don’t want your business to be in the hands of an accountant with limited knowledge of the industry. Thus, it is important that you conduct a quality review before hiring a cannabis accounting firm.

First, review their history—from the number of years they have been in the business down to the list of clients they have worked with. You can also ask for case studies to see what results they have achieved so far. This would give you a glimpse of their ability to handle your cannabis accounting.

Next, test their knowledge and ask them questions about taxes, regulations, entities, IRS 280E, banking problems, and other pressing issues in the marijuana industry. By having this consultation time with your accountants, you’ll not only see their level of expertise, but also learn more about the accounting side of the industry.

Third, look for other credentials. For example, ask if they have certified as: public accountants (CPA), internal auditors (CIA), or enrolled agents (EA); masters degrees may be relevant, too. You could also look them up on their online business profiles or ask your colleagues if they recommend the cannabis accounting firm.

Compliance

Compliance is extremely important in the cannabis space, and of course, you would only want to deal with firms who are compliant with regulations. Before dealing with an accounting firm, check if they have the necessary permits and license to operate and carry out the services they offer.

To check if the individuals in the firm have their licenses, go to the California Board of Accountancy’s website and search the accountant’s name. The records in the website can also tell you if an individual’s records are clear or whether he/she has been disciplined by the Board in the past.

Technology

Upon examining the firm’s expertise and compliance, take a glimpse at their operations by knowing the types of accounting software and other technologies that they’re using, or what they recommend for you.

Technology is an integral part in creating a more efficient process, but there are also a few things to consider such as security, data backup, usability, and integrations.

Professional network

While this might seem like the least of your business’s concerns, working with an accountant or firm that has an established professional network carry a lot of advantages. They can connect you to the right people that can help with providing your business the best banking solutions, technologies, and more.

But above all these things, keep in mind that an excellent firm (or accountant) is not only concerned with your cannabis taxes and bookkeeping. They are also eager to help you grow and find cost-effective solutions to your problems.

Wondering if Aviva Spectrum is the right cannabis accounting firm for you? Schedule a free, no-obligations consultation with us! Just click the button below to reserve a slot and confirm your schedule.