Cannabis Business Tips: Why You Should Outsource Your Accounting

At Green Space, we know that running a small business is not always easy. Managing your finances as a cannabis company can be much more complicated than the average start-up, with constantly changing state laws and regulations making it difficult for dispensaries and cannabis companies to keep a compliant financial system in place.

Rather than deal with the costs of hiring an in-house accountant or even doing their own bookkeeping, many business owners are beginning to outsource cannabis accounting in order to ensure that their finances are organized and in check. These firms are hired to keep accurate records, manage cash flow and payroll solutions, and identify areas of your business that could change to make you more profitable. Not only can outsourcing help your business grow, it can also give you peace of mind, knowing that your finances are accurate and fully compliant.

Here are a few reasons why you should outsource cannabis accounting for your business!

How to outsource cannabis accounting

Green Space Accounting has experience helping cannabis companies with cash flow management, bookkeeping, and maximizing their revenue. If you’d like more information on our services, you can read our service page about cannabis accounting or contact us today — we’ll explain how Green Space Accounting can help.

More Time to Focus on Business

Running your own business can seem like a 24/7 job, with many entrepreneurs scrambling to find enough time to complete daily tasks and make efforts to grow their company. Doing your own accounting in-house can only make this issue worse, especially if math is not your strong suit. 

By delegating these activities to an outside firm, you will not only get more time to focus on the day-to-day operations of your company, but you’ll also be increasing the quality of accounting work that gets done for your business. 

Maintaining Compliance

All businesses must adhere to tax rules and regulatory compliance, but for cannabis companies, the laws are significantly more strict. The cannabis industry has specific tax rules that are different from other businesses, and failing to follow them can result in serious financial and legal trouble. An outsourced team of accountants has the knowledge to keep you informed on what those tax liabilities will be and give you advice on how to set aside a percentage of your revenue to pay for these taxes. 

Outsourcing accounting also gives your company a better level of accountability, both within your business and in the eyes of the IRS. Your partners and investors will feel more confident knowing that you are doing the due diligence to maintain compliance and provide accurate reporting. Having an unbiased set of professionals examine your internal practices and track your cash flow will also help you get a better idea of the profitability of your business and how you can yield better sales results!

Save Money

Another huge benefit of outsourced accounting services is that it is more cost-effective in the long run for a business. Even though doing your own bookkeeping may seem like the best way to save money, your business can run into serious issues if any accounting errors are made. Having a go-to team for handling your company’s finances can actually give you more room in the budget to reinvest in building capital for your business and increasing sales. 

If you’re planning to hire an in-house accountant full-time, many expenses add up, like payroll tax costs, health insurance, retirement plans, and even office and equipment purchases. By hiring an outsourced accounting firm, you’re paying only for the services you need, when you need them, saving you both money and time. 

Increased Productivity

Whether it be with your storefront, online presence, or financial records, being organized is essential for running a successful business. Outsourcing a team of accountants will help you keep accurate records of your performance and give you the data needed to identify areas of improvement and increase overall productivity. Our accounting teams will use analytics to show you your finances at a glance and determine what areas of your business are over-budget or under-budget.

Bottom Line: Why Outsource Cannabis Accounting?

Whether you are a start-up, a growing business, or a multi-state operator, Green Space Accounting can help you along with an intimate knowledge of cannabis rules and regulations. Managing the financial side of your business can be daunting, complicated, and most of all: stressful. You shouldn’t have to go through it alone.

Click below to book a 30-minute consultation with our team today and start on your path to success!