Income tax audits are a living nightmare for many cannabis business owners. This is an aspect of running a cannabis business that owners tend to hate. But as you know it, it is a necessary evil that needs to be taken care of extremely well. This is the reason many owners seek help from the best cannabis business accounting firms. While there are not many accounting firms that extend their services to owners of the cannabis business, there are some companies which are highly experienced and knowledgeable.
The nature of the industry is such that red flags will be raised even if there is a slight problem in the auditing process. So to protect yourself from the troubles that the section 280E of the IRS code can bring, you must get yourself a qualified cannabis business accounting professional. If your business is subject to income tax audits, your accounting professional will be able to give advice on how you can tackle the problem. The professional will most likely have contacts with tax attorneys who will be able to guide you. Basically, when you have hired a cannabis business accounting professional, you won’t have to learn and memorize each and every rule. Regardless of your accounting needs and requirements, they will take care of everything for you.