Maintaining proper accounting records is arguably the most important part of operating a cannabis business in the United States.
Why is accounting important for cannabis businesses?
When it comes to cannabis, maintaining proper accounting records isn’t just a nice-to-have: it’s crucial.
Tax Code 280E is a federal tax code currently preventing state-legal cannabis businesses from deducting most business expenses from their taxes, aside from the Cost of Goods Sold (COGS), since cannabis is classified as a controlled substance.
Determining the COGS can be tricky, there’s a lot of gray areas. That’s why your accountant should fully understand the cannabis industry.
We have a standard chart of accounts, methods of accounting for inventory, and other general needs. We can also work with your organization’s management team to develop Key Performance Indicators to meet your goals. We can help you make sure you’re not paying too much in sales and use tax related to purchasing equipment or certain supplies. We will customize a solution for your unique and specific needs.
Our Cannabis Tax Team will thoroughly review your financial position, develop the most effective and beneficial tax strategies, and partner with you to provide year-round guidance to help you attain your goals. With a dedication to exceeding your expectations, our cannabis tax team members consistently provide client service of the highest quality.