As the legal cannabis market continues to expand and flourish, it’s not just growers that are reaping the benefits. Cannabis businesses of all sizes are emerging and thriving; from small home operations to large-scale commercial ventures. If you own or operate a cannabis business, keeping track of your company’s financial records can be challenging. Here’s why you should hire a bookkeeper for a cannabis business in Canada.
With access to capital for cannabis businesses still limited, many small businesses choose to operate as a sole proprietorship or partnership without hiring an accountant or bookkeeper. However, this can create problems further down the line for corporations and partnerships. If you plan on operating a cannabis business in Canada, we recommend hiring an accountant or bookkeeper or a professional bookkeeping service sooner rather than later.
Why Is It So Important To Hire A Bookkeeper For A Cannabis Business?
As the cannabis industry in Canada and the United States continues to grow and expand, bookkeeping becomes more important for cannabis businesses. Bookkeeping and financial records are the foundation for any commercial business.
Cannabis industry leaders have said that “without accurate financial records, a cannabis business is flying blind”. Poor financial record-keeping can lead to financial irregularities, tax issues, and even loss of business investment. Cannabis businesses need accurate financial records to be able to calculate things such as projected revenue, profit margins, break-even points, and more. Accurate financial records are essential for business planning, regulatory compliance, and obtaining financing.
If your cannabis business operates as a corporation or a partnership, you will need to maintain accurate financial records. Financial record-keeping is vital for regulatory compliance, obtaining financing, and transferring ownership. If your cannabis business operates as a sole proprietorship, accurate financial records are still essential.
Who Should Be Your Cannabis Business Bookkeeper?
We highly recommend hiring an accountant or bookkeeper for your cannabis business. If you hire a professional accountant or bookkeeper, they can help you set up your financial record-keeping systems. There are many qualified cannabis bookkeeping services out there. Make sure to choose one that is familiar with your industry and the applicable regulatory requirements.
Most importantly, choose a bookkeeping service that you feel comfortable working with. Your bookkeeper will be handling your financial records and your financial future. You should be as comfortable as possible working together.
Things To Look For In A Cannabis Business Bookkeeping Service
- – Experience working with cannabis businesses
- – Availability during your cannabis business’ operational hours
- – Access to online accounting software
- – Ability to provide regulatory advice
- – Availability to perform other accounting services such as helping you obtain financing and preparing your corporate taxes
What Tasks Does Your Cannabis Bookkeeper Need To Complete?
Your bookkeeper will need to complete a variety of tasks depending on the size of your cannabis business. At the minimum, your cannabis bookkeeper will need to record your company’s financial transactions, including receipts and disbursements.
Financial transaction recording is the backbone of financial record-keeping. This means your cannabis bookkeeper will need to make sure to record each and every financial transaction that occurs at your company.
Your cannabis bookkeeper will also need to reconcile your financial records with your bank statements and other financial documents. Reconciliation ensures that your cannabis business’s financial records are accurate and that they match other financial documents such as bank statements.
How Can A Professional Cannabis Bookkeeping Service Help You?
Hiring a cannabis bookkeeping service can help you save time, meet regulatory requirements, and save money.
A professional cannabis bookkeeping service can help you save time by managing your financial record-keeping. This allows you to focus your efforts on other aspects of your cannabis business.
Bookkeeping services can also help you meet regulatory requirements. If you operate as a corporation or partnership, accurate financial record-keeping is essential for regulatory compliance.
Your cannabis bookkeeping service can also help you save money, in part by providing information to assist in obtaining financing. This helps ensure that your cannabis business is financially viable and will continue to have access to capital.
Final Thoughts
Bookkeeping is essential for any cannabis business. Unfortunately, many cannabis businesses operate without accurate financial records. This can lead to problems such as difficulties obtaining financing, taxation, and regulatory non-compliance. If you operate a cannabis business, we recommend hiring an accountant or bookkeeper and a professional cannabis bookkeeping service as soon as possible.
Call Intrepidium today at 778-800-7976 to find out how we can help you take your cannabis business bookkeeping and accounting to a higher level.
