As we see our country follow a path to the legalization of cannabis products, both medical and recreational, there is an increase in demand for CBD and THC products. In the cannabis industry, a lot goes into sales, and it can be broken down into a few key categories.
As we go over the types of businesses involved in this industry, we, the THC CPA's want to invite you to 60 Free Minutes Consultation.
Moving along, as you read over the categories, we will share some tips on the trade and inform you of services we offer that may help you. Aside from being well versed in many business models and the services they require, we have catered our services to best help you and your business. Primarily we offer services relative to cost accounting, making your taxes 280E compliant, and IRS audit defense.
The first type of business that we offer to help is medical dispensaries. From bookkeeping to helping you address HIPAA in your accounting, we do it all. Medical dispensaries are unique from the others on this list because they have been around longer than many recreational retailers. If we go back only a few years, medical THC products were only legal in certain states and were often reserved for scientific research and particular patients. Whereas today, there is a cannabis industry, both medical and recreation, all over the country. For example, many of our clients we help are from New York, New Jersey and Florida, and in those states, for the most part, adult and medical use are legal. As mentioned before, our staff are trained in dealing with medical businesses and are experienced in the services they need, from assistance with the books, taxes, or HIPAA.
Regarding HIPAA, medical dispensaries should focus on cost accounting and insurance information. While the rules are slightly different for dispensaries compared to a dentist's office, there are still controlled substances, prescriptions, and often insurance attached. In these ways, a medical dispensary is just like any other medical practice, minus a doctor being present in the store.
Considering the many areas of retail that go into the marijuana industry, from the plant to concentrated CBD products, there are many regulations attached to them. These retail areas are aspects of the financial world we are familiar with. Our staff has experience helping clients obtain liquor licenses, and believe it or not, it's not that different of a process to get the paperwork to be a licensed retailer. This shift in the Rules around THC markets has created many business opportunities that will operate outside of the scientific or transportation aspects of the trade, and that aspect is recreation. We are starting to see marijuana retailers act like bars or liquor stores, where as long as you are of age, you can make a purchase with no complications. Given our experience in its peripheral fields, we here at The THC CPA's want to offer you those same services catered to your business's needs. At our parent company, Interactive accountants, we offer services dedicated to business financing. Using that approach for your retail dispensary is a great business model. Operating within legal guidelines, you and your business can have many great opportunities for growth as we continue to see changes in laws regarding marijuana and its adjacent products.
When thinking about good objectives while working with a lab, cost management is at the top of the list. Cost management deals with resources and labor used in a research or clinical practice, and in the case of THC production or research, it is no different. Laboratories are a vital component in the production process of THC products. Whether it is products containing THC or CBD to genetically modified marijuana plants, labs make the market possible. They help this growing market have measurable doses that can be regulated or, more importantly, inform the public about their products. As many people know, marijuana use, while safer than some other drugs or substances, can still have adverse effects, and knowing precisely how much of the chemical compounds that contribute to those effects is essential. The US Food and Drug Administration FDA has stated that as we see this market grow, they want to talk with states and businesses to help them achieve national science standards. This need for information leaves laboratories with a lot of work to do and even more work to keep track of it all. Knowing what you're doing is a significant first step, but to thrive as a lab and a business, it is advisable to get some extra help keeping your books in order.
Another area of the THC industry not to be ignored are wholesalers and distributors. For distributors, our parent company Interactive Accountants has specialized training in dealing with Amazon Delivery Service Partners (DSP) and is happy to help with your delivery and distribution concerns. On the other hand, wholesalers are in an exciting position. Given that their businesses are usually online, they often cross state borders and need to be aware of the tax and marijuana laws. Since marijuana is still federally an illegal substance, some issues to consider is the state legality of your product. For example, there are alot of wholesalers of THC based products shipping across the country, and depending on the state that package is in, its classification can change. In this expanding market, our staff is ready to take on the challenge of helping your business thrive.
Here at The THC CPA's,want to invite you to take the time to explore our new website and reach out. Here at THC CPAs helping businesses grow and succeed financially is our number one goal. We are here to help! If you're still not convinced yet to give us a call, feel free to look at our other blogs regarding the help we offer various businesses and offices.
If you are a professional in any field that these tips apply to, schedule a free consultation here with our owner Matthew Shiebler, CPA. He's been practicing accounting for over 25 years now and is a business owner, just like you!