In the realm of cannabis businesses, there is an abundance of software tools designed to automate various tasks, freeing you from dealing with minor details. When properly utilized, accounting software can significantly simplify your life and streamline your operations.
There are things you should know about using accounting software before incorporating it into your everyday business routines.
Accounting software can manage transactions, accounts receivable, expenses, revenue, accounts payable, sub-ledger accounting, analyze reports and generate reports, but it can’t manage technical financial transactions or compliance taxes and offer financial consultations to save you money.
When you’re managing the daily finances of the business, you can incorporate accounting software to do the basic requirements.
Today, we’ll dive into the specifics of using cannabis accounting software for your business.
Do You Need Cannabis Accounting Software In Business?
You may not need cannabis accounting software to do the more technical aspects of recording and tracking finances like inventory, yearly tax preparations, and others.
When using cannabis accounting software, you may need to use it for the basic financial incoming and outgoing finances.
You can save time by doing accounting software within your business to lighten your workload. It can also save you money in doing basic reports and analyzing daily transactions.
For larger businesses, the software may not suit you since your operations are larger and require closer attention to detail.
When Can You Use Cannabis Accounting Software?
You can use cannabis accounting software at the start or the beginning stages of your business operation. At this point, you can incorporate the software to use basic reporting and analyzing.
When your business begins to grow and produce more sales, you may need to hire a professional accountant to conduct technical financial activities, money-saving consultations, and tax compliances.
As you grow, it may become more challenging to manage larger sums of money and inventory processes.
Can You Use Quickbooks For Your Cannabis Business?
You can use Quickbooks to manage incoming and outgoing transactions or expenses and other basic actions, but it can’t manage tax compliance activities.
A cannabis business must have a compliant software system and a professional accountant to navigate the tax regulations, especially the 280e tax revenue code.
There are technical finances that Quickbooks can’t manage or conduct on a daily business operational basis.
When looking into accounting software, it’s best to be aware of the short pitfalls of them. They aren’t overly technical and can be easy to use for your business.
Can You Use Quickbooks For Payroll For Your Cannabis Business?
Quickbooks isn’t cannabis compliant, especially for payroll so you may need to sway away from using it for that specific area.
Payroll is more extensive and involves compliance navigation to manage business operations.
If you’re wanting help with payroll for your cannabis business, it’s best to find a compliant software with the capability to conduct payroll or you can consult with a professional accountant.
It can prove challenging to manage payroll with accounting software if you don’t have the time for it. Many cannabis companies are hiring professional accountants to manage and optimize payroll activities for this reason.
What’s The Best Accounting Software For Cannabis Businesses?
There is numerous accounting software for businesses, but there are limited systems for cannabis businesses due to compliance regulations.
When searching for cannabis accounting software, you can look at the few that integrate compliance regulations.
These accounting software include the following:
- Accounting suite: This is not specific to cannabis and has some technical accounting materials you can add and manage.
- Cannabis 365: This is a more specific cannabis focus accounting software that can get you the results needed, especially for compliance issues.
These are a few accounting software you possibly use and incorporate, but they won’t give you an all-around accounting analysis and reporting on your finances.
That’s why engaging with a professional cannabis accountant is the optimal choice, as they provide deeper insights into your cannabis business’s financial well-being than software alone can offer.
Where To Find A Qualified Cannabis Accountant?
There are many accounting software for every business, but there are limited ones for cannabis businesses. To get ahead and stay compliant, you can look into hiring a cannabis accountant for your business finances.
A cannabis accountant can give you insights into your business and offer suggestions to enhance your financial growth.
Here are a few things you need to look for in finding a qualified cannabis accountant:
- Reputable and Qualified: For Accountants working in the finance area, need to be qualified to conduct accounting requirements for a business. They will need to have a CPA license to conduct accounting work. They should have the ability to record, analyze, and offer insights into the overall health of a business. Another factor is how long they’ve been an accountant since they should have more than a few years under their belt.
- Compliance Verified: A cannabis accountant needs to know the regulations and compliance in the industry. They also need to understand the tax compliance area to ensure cannabis businesses won’t receive tax penalties. They can prepare you for the yearly tax period so you can stay ahead of the industry.
- Understand accounting software: When an accountant understands the type of accounting software there are, they can best guide you if software should be integrated into the business. Some accountants may even use basic accounting software to give them deeper insights into the business.
These are a priority when searching for a cannabis accountant for your business. It’s best to hire a qualified person to handle your financial activities. They are better at understanding the needs of your business financially than software can ever be.
You can look into hiring an accountant professional from Green Space Accounting. We have experts with several years of experience who can ensure you get compliant and ready when tax season comes.
The expert cannabis accountants at Green Space Accounting have more than 20+ years of experience in the area and currently work with several cannabis companies to identify accounting and financial needs.
Final Thoughts On Cannabis Accounting Software
Before incorporating cannabis accounting software into your daily business routines, it’s essential to understand the benefits and limitations.
While these tools can simplify basic financial tasks such as tracking transactions, accounts receivable, expenses, and revenue, they may not provide the necessary technical support for managing complex financial transactions or tax compliance.
As your business grows, a professional cannabis accountant may become indispensable for navigating tax regulations, providing financial consultations, and managing payroll.
Selecting the best accounting software for your cannabis business is crucial to ensure compliance with industry regulations.
However, consulting with a qualified cannabis accountant remains the optimal choice, as they can provide a more comprehensive understanding of your business’s financial health.
When searching for the right cannabis accountant, prioritize experience, compliance knowledge, and familiarity with accounting software.
At Green Space Accounting, we offer a team of experienced professionals who can help you stay compliant and thrive in the cannabis industry.