In the next few years, CBD and legal cannabis are anticipated to hit the $100 billion market in the next few years in USA, where thousands of new companies are demanding tax & accounting help. Many states, including Bellevue, start gradually, but as the effects of more jobs and tax dollars for counties and cities develop, we will see strain move things along more swiftly. With cannabis legalization in Bellevue on a federal level and this state allowing the sale & cannabis production, this leaves professionals, such as CPAs, in a major unsafe position.
On one side, cannabis firms start demanding accounting guidance to stay compliant and keep their licenses. As cannabis is considered a Schedule 1 drug by the US Drug Enforcement Administration, there’s some reluctance for professionals like a CPA in Bellevue, WA, to provide services to this industry. The truth is that thousands of cannabis companies spawn yearly in Bellevue, and there aren’t enough experienced accounting professionals to manage those company’s accounting work. Below are the top 5 myths regarding accounting services to cannabis.
1: CPAs may lose their licenses if they’re involved with a cannabis company
Thousands of CPAs in Bellevue are serving cannabis firms in every state, and not one has lost a license for serving a state-legal cannabis firm. The same goes for plumbers, lawyers, electricians, and thousands of other service providers. The American Institute of CPAs has known the accountant requirement to serve cannabis firms and is on board. Over the years, the AICPA has organized a two-day conference of handpicked professionals in the cannabis niche to present vital information better to teach accounting professionals regarding this grossly underserved element. If you have any suspicions, contact your state board of accountancy to know more about serving cannabis companies as a CPA.
2: Cannabis is a horrendous niche for CPAs
Since there are no CPAs in the cannabis niche, it’s a huge opportunity. Many surveys have demonstrated that solo CPAs grapple most with finding superior clients, and if this is the case, it might be your last resort to find high-paying clients quickly. Many folks will spend six figures on top-notch CFO, tax, and accounting services.
When you see a small cannabis dispensary, farm, or vertical integration quickly become a $10-20 million firm, these clients will pay massive fees for rock-solid tax and accounting. The accounting charges aren’t straightforward, and it’s crucial to the investors and founders to accomplish this accurately.
3: It’s an “all-cash” industry
Credit unions and financial institutions serve cannabis firms in distinct states. For instance, in Bellevue, Maps Credit Union has over 10 branches and serves any licensed cannabis company. There’s a huge amount of cash in the industry, so there’s a major need for money controls and processes to prevent theft and deception. Moreover, you will find that several cannabis entrepreneurs have anywhere from 2-10 non-cannabis entities, such as equipment or real estate firms, and these can have straightforward access to banking.
How does a CPA get started in these niches?
Cannabis Accounting is the most rewarding industry for those who love the difficulty of steering tough accounting & tax issues, helping clients handle the financial health of their business, and implementing controls & systems while boosting cash flow. Being successful at any professional service business needs two things: searching for leading clients and offering them superior service.
The key to success is discovering a valuable niche and mastering it since this will begin bringing quality customers to you directly and enable you to offer top-notch service. Expertise comprises more than simply accounting and taxes; it includes procedures, products, politics, and compliance.