Having a basic understanding and foundation of accounting concepts is important for any type of business owner, whether small or large. Sure, it’s easy to add numbers on a piece of paper or in your head, but translating those into useful information for tax return preparation, business valuation and strength, and even supporting the legitimacy of your business operations are especially important. Your accounting records should be the backbone of your business – the financial picture of your activities. Make sure they are done right!
As an MMJ Caregiver, you are in a unique situation. Following the laws and licensing requirements of your state allows for business transactions and activities “outside of the norm” than what may otherwise be legal for those who are not licensed by their state to offer such services. However, as more and more states and people become accepting of medical marijuana, supporting the legitimacy of your activities in all respects should be a top priority.
This means following appropriate accounting methods when recording transactions in your bookkeeping records for all of your business financial activities. It also means preparing and submitting tax returns for all required levels, including Federal, State, and even your local municipality in some cases. If you are producing revenue and have income, then you are required to file tax returns – no matter what!
We offer complete accounting tutorials in order for you to learn step by step with real life examples about how to do your bookkeeping, accounting, and tax preparation for your MMJ Caregiver business activities. Section 1 of these tutorials provides a basic foundation of accounting knowledge and expectations – so that you can have full understanding of what, why, and how your accounting and bookkeeping should be done.
The format of the tutorials follows the experience and activities for a medical marijuana caregiver, all of which are written by a CPA. Each example continues to build off the last, so that you are provided with a full, clear picture of how to account for activities at all levels.
If you intend to do things legitimately as a business owner, then make sure your accounting follows that logic as well. Not keeping good records or cutting corners may be one of the worst things to do at this point in the game. With LCSM Accounting Tutorials can help you gain the knowledge and understanding to do your own self prepared accounting for medical marijuana caregiver activities that are applicable to your business as a state licensed caregiver. Check out the full set of accounting educational tools here!
Section 1 covers accounting basics and begins with a simple real life example. The intent is to provide a firm foundation in accounting terms and the importance of proper bookkeeping. Each of the following sections continues to build upon the scenario with more detailed and complex example scenarios.