When looking to manage your accounting activities, there may be a list of to-dos to ensure the finances are accurately reported. It can prove daunting to navigate through all things accounting, but luckily there are ways around the extremities.
You can either hire an accountant or hire a cannabis accounting training professional to help conduct your business accounting thoroughly. The two methods provide advantages and disadvantages to your cannabis business.
Accounting training allows you to get a thorough understanding of your accounting activities, especially navigating tax-compliant regulations.
For those looking to enhance business operations without spending too much time on accounting, you can work with a cannabis accountant expert.
Both deliver benefits to the business operations and choosing one depends on your business goals and direction.
This article further explores hiring an accountant versus hiring cannabis accounting training to perform financial accounting duties.
Hiring An Accountant V.S. Hiring Cannabis Accounting Training
When hiring an accountant, you’re required to work with them to clearly define your finances and projections. Cannabis accounting training requires time and attention to conduct accounting work.
We are going to evaluate the pros and cons of hiring an accountant versus hiring an accountant trainer.
Pros And Cons
Accountant Expert Pros:
- Minimizes Time: They do the work for your business that takes time away from you working in the business.
- Expert Guidance: You get expert advice on all the business’s financial goals, future projections, and a tax guide to compliance regulations.
- Avoid Unnecessary Fines: Experts can minimize the risk of accruing unnecessary fines within the business. For example, they can help you record all inventory costs and ensure everything is accounted for that won’t be missed. If any are missed, then it can potentially lead to a fine on top of the taxes the business owes.
- Provide Economic Efficiency: An accountant expert can enhance economic efficiency in business that can optimize your cash flow.
Expert Accountant Cons:
- Cost: Specialized expertise in the cannabis industry may come at a higher price compared to general accounting services.
- Limited Understanding Of Cannabis Business: Accountants, especially those not deeply familiar with the cannabis industry, might struggle to understand the financial nuances of banking and tax challenges specific to cannabis businesses. This could affect their ability to provide tailored financial advice.
Before hiring, carefully assess the accountant’s experience, cost, and ability to adapt to the unique challenges of the cannabis industry.
Cannabis Accounting Training Pros:
- Improved Financial Management: Training equips your staff with the skills to effectively manage finances, track expenses, and optimize budgeting.
- Compliance: Training ensures that your team is well-versed in accounting regulations and standards, reducing the risk of compliance issues.
- Efficient Record Keeping: Proper training enables your employees to maintain accurate and organized financial records, facilitating smoother audits and financial assessments.
- Cost Savings: With trained personnel, you may reduce the need for external accounting services, saving on outsourcing costs.
Cannabis Accounting Training Cons:
- Regulatory Complexity: The cannabis industry is highly regulated, and your business needs to stay abreast of evolving regulations. Keeping up with the complex and frequently changing rules can be demanding.
- Time-consuming: Training can cost a business time to learn all the nuances of accounting that it may not need, especially if it’s a fast-growing business.
- Lack Of Training Selection: There may not be enough training programs or services in the cannabis market to explore which can put your business at risk in investing in one program. Without extensive research on a selection of programs, it can make it hard to trust the one program on the market.
The pros and cons of these shed some light on whether you should hire accounting training or an expert accountant for your business.
What To Look For In Cannabis Accounting Training
If you’re adamant about getting cannabis accounting training for your business, know they need to meet certain qualifications.
The criteria accountant trainings should have are:
- Industry-Specific Expertise: Ensure the training program focuses on the unique aspects of cannabis accounting, including compliance with industry regulations, taxation nuances, and specific financial challenges within the cannabis sector.
- Accreditation and Certification: Look for programs or services that are accredited by relevant accounting bodies or offer certifications in cannabis accounting. This ensures that the training meets recognized industry standards.
- Up-to-date Training: Given the rapidly evolving nature of the cannabis industry, choose training that includes current information on regulations, tax codes, and industry trends.
When hiring a cannabis accounting training service, they should meet these criteria to ensure you’re getting valuable training.
When To Hire An Accountant
You should hire an accountant when the business is outgrowing you and it becomes too much to handle by yourself. Business owners must consider hiring at this point and also if tax compliance regulations become overwhelming.
The cannabis industry is subject to many tax and financial regulations that change consistently. Staying on top of these regulations can be challenging for one business to maintain consistent updates on.
An accountant already knows all the compliance regulations within the industry which can save you time from researching all the rules yourself.
Also, consider hiring an accountant if you want to maximize all your available deductions under the cost of goods sold (COGS), especially for a cannabis dispensary cost of goods sold. Well-advanced accountants can pinpoint specific strategies to maximize cash flow that can improve business operations.
How To Find Qualified Accountants
Make sure to look for qualified accountants with certification up their sleeves that can be found in the I.R.S. directory. They should also have plenty of years of experience with a proven track record to back up their claims.
Professional accountants must have an extensive array of testimonials and reviews on their website or on review sites to prove their credibility.
Search and list qualified accountants online then research their background to ensure they are credible.
When looking for accountants, there are several that can help you manage business finances thoroughly.
Green Space Accounting provides a thorough analysis of the cannabis businesses’ finances and understands how to navigate the compliant taxation chaos. They cannabis specific making them a prime choice for dispensaries and those looking for Maryland cannabis accountants.