The legal cannabis and CBD/hemp industry is expected to be a $100 billion market in the next few years, with hundreds of thousands of new companies needing accounting and tax support. Many states are starting slowly, but as the impact of more jobs and tax dollars grows in cities and counties (as well as demand), we’ll see the pressure move faster. Not to mention, we have the very real possibility of federal legalization very soon. We saw this happen in 2018 when CBD and hemp were fully legalized in the Farm Bill.
The legalization of cannabis at the federal level is uncertain, and individual states allow the sale and production of cannabis, leaving professionals such as CPAs in a precarious position. On the one hand, cannabis companies need accounting support to stay compliant and maintain their licenses. But because cannabis is still considered a Schedule 1 substance by the US Drug Enforcement Administration, there is some reluctance for professionals like CPAs to provide services to the industry.
The truth is, there are thousands of businesses popping up all over the place and there aren’t enough skilled accountants to keep up.
Below are the top five myths about providing accounting services for the cannabis and CBD/cannabis niches:
