Cannabis businesses are facing a lot of challenges right now, and one of the biggest is financial management. Cannabis accounting can help struggling businesses save money and manage their finances better. In this video, we discuss how cannabis accountants can help your business. So if you're struggling with financial management in your cannabis business, this video is for you!
When a cannabis company is not meeting their expectations or having their budgets blown or aren’t getting what they expected, that is a difficult situation. Emotions will be running high.
What's important for people to note is that this industry is new and evolving, with some of the changes hopefully they're coming federally, we will have some relief, we hope. But ultimately, you have to be current and compliant on your taxes before the federal government is going to have any sort of conversation with you. What current and compliant means is that you filed all your tax returns to date and you are current with the estimated tax payments that need to happen.
When you're in a cash flow situation that's problematic, that's difficult to do. Yet you at least need to start the conversation. You need to not put your head in the sand and ostrich up in relationship to something that you don't want to look at.
The legal cannabis business is difficult, and it's hard to go backwards. I spend a lot of time with what I call the legacy-to-legitimate pipeline, helping people who have been in medical markets or in the illicit market move into being able to be regulated. It's looking from a really sensitive but realistic standpoint, the documents that got you there, the business decisions that you made, and where you can change your behavior and educate yourself on getting better.
Indiva and other cannabis accountants can in fact help with tax liabilities, with the ability to be able to try to get those reduced or at least reasonably paid in some sort of an installment agreement. But we can't do anything, if you won’t file a tax return or if you believe that those taxes are something you’re not subject to.
We don't want to fight through those problems. What we want to do is find the solutions. Where the documents are? How do we get a tax return? How do we get the conversation started with lawyers, with the IRS, with state and local jurisdictions, to be able to let you be successful?
If you go out of business, they get $0. So I think that they have an interest in you staying in business. We just have to work on that and be humans on that level.