New Frontiers: Is Marijuana Accounting a Viable Niche?
| |
As more and more states legalize marijuana,
does it make sense for accountants to
create a specialty to attract the Cannabis industry?
Over the years, BYF has encouraged many accounting firms to develop niches to improve lead generation quality and better service segments of the business community. However, we are at a quandary about whether this is a viable niche for all types of accountants. If you want to chime in, we will open this topic up for discussion within our LinkedIn Group called Modern Marketing Methods for Accountants.
By all means, more and more states are passing legislation so I understand the tide is moving in that direction. It's a reality that more states will jump on board and the federal government is caught between a rock and a hard place. In fact, it's like prohibition days. As a result, most banks are trapped too.
Here are a couple core issues:
1.) Good moral character clause - Will the State Boards of Accountancy refuse to renew your license because you service this type of business?
2.) RICO - If the federal government decides to take a strong stand, can RICO charges be applied to a bookkeeper, EA or CPA firm that caters to this industry?
3.) Would a tax law firm or hybrid practice (law/CPA practice) be better suited to handle this clientele because of the attorney client privilege?
4.) Security, Payroll and Banking Issues - With a lot of cash on hand, this industry is susceptible to robberies and audits. Payroll must be a bear. Protecting the merchandise is a huge challenge.
So far, Colorado, Washington, Oregon, Alaska and Washington DC are legal. The next wave in 2016 (ballot initiatives) is Massachusetts, California, Missouri, Hawaii, Maine, Nevada and Arizona.
Join our discussion at Modern Marketing Methods for Accountants and chime in professionally on these business challenges.
Currently, there are over twenty accounting firms that have embraced this industry. Here is a compiled list of accounting firms embracing this industry.
