CPA: Why Do You Need One for Your Weed Business?
Even if you have a small business, you will need a Marijuana CPA. They are more than an accountant. An accountant is a financial and tax professional who will follow specific rules and regulations. But a CPA is an accountant who has passed a licensing examination in the state. While accountants do well for numerous businesses, but CPA is more suitable when your business has reached a scale.
A state licenses a CPA, and they must keep with the current laws to maintain their license. But accountants do not need a license. The very nature of the CPA exam requires many facets of financial and tax expertise. Even if they are licensed, they need to comply with the continuing education requirements to maintain their licenses. But accountants don’t have this requirement.
Knowledge of Applicable Laws
A CPA is more familiar with tax laws than the accountants. The very understanding of tax code is a big part of the CPA licensing exam, and many CPAs take the tax courses to keep abreast with the latest laws. While an accountant may be capable of signing the tax return but the designation of the accountant does not provide any certification. An accountant is not even eligible to represent you before the IRS. They are not enrolled for tax preparation. The IRS requires all the tax preparers to have a tax identification number. On the other hand, CPAs are enrolled, agents.
Analyses of Finances
A bookkeeper performs the routine task of recording the financial transaction. The accountants this and prepare and analyze the reports. CPAs can go even further, and they advise on tax and financial matters.
One of the main reasons to use a CPA for your business taxes is that they are more capable of representing you before the IRS in case of an audit. The accountants have limited capability and when you are paying a professional for tax preparation, make sure that the person has the authority to represent you in an audit and to execute the claim on your behalf. An accountant can do the routine work, and they can complete the returns, but a CPA is capable of analyzing the same and can represent you in a tax audit.
But Before You Hire One Ask These Questions
- How much experience do you have? It is obvious, but you will surely not like to take the chances with a CPA who has not been in the business for long. It is also crucial to ask whether that experience is in the Cannabis industry or not!
- Do you have worked internally for a cannabis industry? You will be able to find CPAs who don’t have any inside experience of working inside the campus. It is better to prefer a CPA who has worked internally as they have the required working knowledge of the industry.
In the End
When you have an experienced Marijuana CPA, you can rest assured that your business is in safe hands!