No one likes paying taxes, let alone extra taxes, penalties, or fee. Here are a few tips to help you save money when tax time comes.
1. Keep Good Records
Make sure you are keeping good records of all your accounting, payroll, production, and overhead expenses.
2. Be Informed
Stay up to date on all the latest regulatory changes, and industry rules.
3. Understand What’s Deductable
Know what you can and cannot deduct from your taxes is important. For example, an in-office meeting meal is a 100% tax write-off, whereas, an out of office meeting meal at a restaurant is considered a 50% tax deductible and should go under Meals & Entertainment category.
4. Cash & Banking
Keep accurate logs of all cash, and be careful about how you manage your cash flow. If you can get a bank account for your cannabis related business, we recommend that you do so. However, be mindful not to process transactions that could lead to your account being shut down or funds seizure.
5. Hire a Professional
You might want to save yourself the headache and just hire a professional from the start. taxes are a pain to pay and a pain to prepare. Give yourself a break, and contact a cannabis tax professional today.