Focus on Growth: How tax & accounting firms can best serve the cannabis industry

These handle some tasks that overlap with accounting software—namely, billing clients—while including features that no accounting software can provide (particularly those requiring HIPAA compliance, like medical record management). Most accounting software is able to connect to your bank account, automatically import transactions and—once you create https://www.bookstime.com/ rules for the software to follow—categorize them. That means you no longer have to record every transaction in your general ledger by hand. It’s up to you to make sure you understand the fundamentals of making bookkeeping entries and generating financial reports. Using software is no substitute for hiring a qualified bookkeeper or accountant.

In 2022, the cannabis market in the U.S. was estimated at $13.2 billion and is expected to reach $15.8 billion by the end of 2023. Further, the market is expected to grow at a compounded annual rate of about 14%, reaching about $40 billion by 2030. “Business purposes,” in this case, do not include your regular commute to work.

Tax and Accounting for your Private Practice

It’s almost impossible to bring on new employees or clients if your books are a mess. With an organized process in place, you’ll know exactly when and how you can afford to expand.

We are so much more than a tax preparation company; we help you understand how your business is performing and maximize your profitability. We have customized our service packages to include what private practice owners need based on where they are in their private practice journey. The services range from basic monthly accounting all the way to CFO-level services including compensation analysis and forecasting. As a small business owner, most of your business-related expenses are tax-deductible. Which means, rather than pay taxes on your private practice revenue, you first subtract a majority of your expenses and pay your taxes from that amount of money instead. Of course, firms shouldn’t bet the entire farm on the cannabis industry.

TURBOTAX CD/DOWNLOAD

You should also plan to create annual financial statements, after the year ends, which you’ll use to file your taxes. Most importantly, we understand that every business has unique financial and accounting needs depending on the structure of their business. That’s why we tailor our services to meet your specific desires and needs. Every therapist who joins Heard is supported by a team of accountants, CPAs, payroll specialists, and bookkeepers who specialize in therapy practices. By specializing in one industry, we have become experts in tax services for private practices of all shapes and sizes, which it the end of the day benefits you. We help you get the most out of your tax fillings and cover a wide range of tax services including tax preparation, amended returns, audits, filling, and strategic tax planning.

‍That’s because, even if you track your deductible expenses, you need to keep receipts on hand in order to report them. In case of an audit, the IRS will demand receipts for your tax deductions. Wave makes money by charging fees when a client pays an invoice using a credit card or bank transfer (ACH). If the bookkeeping for massage therapists bulk of your income comes from recurring billing of clients, and you’re already taking care of that using a practice management or EMR/EHR system, you won’t be charged anything extra. For bookkeeping and accounting purposes, each of these financial statements is generated on a monthly or quarterly basis.

Advertising and Marketing Expenses

Running a private practice as a psychologist and/or therapist can be an accounting headache. You collect a copay or payment at the time of service, and you may also bill insurance and/or Medicare and Medicaid. Keeping track of expenses, cash-on-hand, accounts receivable, how much to pay yourself, and preparing for tax returns is, well, a lot.