Business owners and growers in the cannabis industry are facing unprecedented times of demand from consumers, with new stores opening all throughout the United States. Whether you are overseeing an independent company or a company-owned store, you'll need to rely on specific accounting protocols for everything to run smoothly.
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Running a business is hard work. If you run a cannabis or hemp business, it’s often even harder. There are so many strict rules and regulations to keep track of to stay compliant. On top of that, banking is much more challenging. As a cannabis or hemp business, you need to stay on top of your financials to maintain compliance. Having an understanding of good accounting practices can help.
When running your cannabis business, you may have plenty of occasions when cash flows through your hands. Petty expenses like pizza for the crew or quick payments for small sales can add up faster than you think — and you must account for it all.
While any business has the possibility of either wild success or complete failure, those in the cannabis industry have likely seen both extremes. That's because this relatively new industry is overseen with contradictory regulations, evolving attitudes, and localized political will. Imagine if small franchise restaurants or pharmacies had to worry about changing tax deductions and regulations that may negatively impact their business like the cannabis industry.
While it's especially true in the cannabis industry, it applies to every business that's looking to grow: You just can't do it alone. A one-person operation may have worked for a while, but you will inevitably need to grow your team as your company begins to scale. However, there's always a budgetary limit to how many people you can hire. So creating a strong network is a critical element for success in any cannabis-related business.
For hemp and cannabis businesses, tax time can be incredibly stressful. Filing taxes can be a chore for any business, but it can be exceptionally challenging for those in these industries. Planning now can help save you a massive headache, especially if you have the right help.
On March 27, 2020, the Coronavirus Aid, Relief Economic Security Act (CARES) was signed into law. One section of this $2trillion stimulus package authorized Economic Impact Payments (stimulus checks) to be issued in an attempt to provide a temporary boost to the economy that has currently been impacted by the spread of COVID-19 and the resulting business closures....
