Getting Started as a Cannabis Accountant
Jumping into the cannabis industry in late 2014 / early 2015, there weren’t many resources out there for accountants. The move was bold, the move was risky, and the move was worth it. Since 2014, the industry has gained massive traction and popularity.
Cannabis was my first industry as an entrepreneur and as a freelance accountant, and I definitely have learned my fair share of entrepreneurial and business lessons.
From doing due diligence on every customer, potential partner, and vendor to knowing how to set personal boundaries, the lessons you will learn in this industry will teach you more about yourself than you can imagine.
Here’s a quick snapshot of how cannabis accounting is different than your traditional industry.
- Cannabis is a highly regulated, cash-intensive, and nascent industry.
- Businesses are accelerating at a rapid pace, from new product launches to mergers and acquisitions.
- Cannabis business owners face punitive taxation and sometimes are taxed for cannabis at a local and state level (in addition to the federal tax
- Cost Accounting is a pillar for cannabis cultivators and manufacturers
- Cannabis businesses need good inventory management systems and practices
- Cannabis businesses need good financial Controls
- Cannabis businesses are required to track all cannabis on the seed to sale tracking systems
- Good accounting is the foundation to building a profitable cannabis business and these businesses are in need of accountants.
If you have been on the fence about working in the cannabis industry as an accountant, I created a guide to help you understand the risks and rewards and actionable steps that you can take to get started.