The global market for legal marijuana is growing rapidly. Many companies are now getting into the industry. A Cannabis Company CFO with expertise specifically tailored to this industry will keep your cannabis business financially on track and profiting. Here are a few important reasons to consider hiring a CFO for your cannabis company today:
Cannabis and CBD/hemp accounting is specialized
Accounting for cannabis companies is complex. This accounting requires specialized expertise in the industry, specifically regarding the 280e and COGS deductions. An accountant or virtual CFO inexperienced in the industry won’t have the niche accounting tools necessary to serve the industry. This inexperience quickly leads a company into trouble with the IRS.
You could be missing out on profits
Cannabis companies face higher federal tax rates. Therefore, it’s important to make sure you are paying the correct amount. Overpaying means missing out on profit. Conversely, not paying enough means your company is at risk of being penalized. A virtual CFO is responsible for managing all financial aspects of the business. Therefore, they can help your business find the right financial strategies to make sure your profit is not lost during tax season.
Better processing of financial information
A CFO is a person on your team that handles all financial reporting. They are the person keeping a close record of your company’s profit and losses. Additionally, they review all numbers for accuracy. It’s necessary to have this expert on your team because they will keep your business on track.
Knowing the loopholes can save you money
Cannabis borrowers pay a premium. Due to this, rates on real estate are up to twice the standard rate. Cannabis is not federally legalized. Therefore, cannabis business loans are frequently hard to get and costly. However, a CFO with knowledge of the cannabis industry can help you navigate this process. They are able to direct you to find the best rates and terms.
Follow us on Facebook to learn more about our areas of expertise!