Cannabis Accountants and Advisors

Our mission is to help accountants fall back in love with accounting again by changing the current state of the accounting industry from being high-stress and highly competitive to a collaborative, value-producing network of services. If you’re fielding calls from cannabis business owners, you may have discovered that they have a written business plan but don’t always understand how to use it. Other times they’re wading around in their finances without understanding how to maximize their profit, pay appropriate taxes, and read what the numbers in their books mean for their overall profitability. Despite steps taken to untangle and streamline cannabis accounting, such as the SAFE ACT, finance professionals amid or looking to enter the cannabis industry still operate within a legal limbo between state and federal law. To clarify and align legal frameworks, prominent political figures including Senate Majority Leader Chuck Schumer continue to aim toward a nationwide legalization effort.

Tax Credits and Incentives Advisory

Limited sources of capital are available to operators in the cannabis industry because many financial institutions’ underwriting requirements preclude investing in cannabis. Legal and Operational Structure – choices to maximize flexibility and to comply with federal, state, and local laws, including licensing. Marcum’s Cannabis Services Group is an industry leader recognized by trade and professional organizations as a subject matter expert. Team members hold key committee positions with industry associations and are frequent presenters at cannabis conferences.

Cannabis Tax and Accounting Services

We are in the business of adding value to our cannabis and CBD clients, not simply performing compliance and advisory services. Our goal is to bring ideas, improvements and efficiencies that contribute to your success. At The Canna CPAs, we recognize that cost of goods sold (COGS) is a critical aspect of your financial operations. Our medical marijuana accounting firm specializes in helping cannabis businesses accurately calculate and allocate COGS, ensuring that you meet compliant standards, while at the same time legitimately maximizing these deductions to optimize savings.

St. Louis County Circuit Judge Rules Cannabis Tax ‘Stacking’ is Legal

• Quickbooks and other accounting software don’t have a chart of accounts tailored to Cannabis entities for example.
• Encourages small business and farmers to participate in the cannabis industry with the creation of microbusiness, cooperative and delivery license types.
• Becoming a specialist in a specific accounting area, like cannabis, can enhance your skills and future.
• We are the #1 US network of over 500+ CPAs, CFOs, Accountants, Tax Attorneys, Enrolled Agents, and Bookkeepers, that are the leading experts in providing GAAP compliant, cost-saving, strategic, accounting and tax services.
• We are in the business of adding value to our cannabis and CBD clients, not simply performing compliance and advisory services.
• To bolster your services, aim to build a permanent audit trail every month for each client and promptly seek nuanced legal counsel when you feel you are operating in gray areas.

We accomplish this goal every day by providing our clients with a suite of accounting, tax, and financial solutions built on sound accounting principles and optimized for the unique risks and opportunities of your industry. Note that the burden of proof with respect to the inventory writedown from cost rests with the taxpayer, and adequate records must be maintained to establish the values. We blend our extensive tax, accounting and financial advisory knowledge with industry expertise to give you a best-in-class cannabis accountant experience.

Maximizing the performance of cannabis-oriented businesses hinges on accurate legal and financial information, a topic you can learn more about at the AICPA & CIMA Cannabis Industry Conference in August. Pursuant to the Cannabis Law, the Cannabis Control Board is charged with the creation and implementation of a social and economic equity plan in consultation with the Chief Equity Officer and Executive Director, and after receiving public input. The goals of the plan include the promotion of racial, ethnic, and gender diversity when issuing licenses and the promotion of diversity in commerce, ownership and employment, and opportunities for social and economic equity in the regulated cannabis industry. The Marijuana Regulation and Taxation Act creates a first in the nation comprehensive regulatory structure to oversee the licensure, cultivation, production, distribution, sale and taxation of medical, adult-use and cannabinoid hemp within New York State.

• The Colorado Department of Revenue publishes lists of licensed cannabis facilities on their state website.
• Hunzicker also seeks to reassure CPAs as they consider offering their services to cannabusinesses.
• Table 5 summarizes the responses when asked what professional accounting and tax services are most needed in the industry.
• Industry operators must be prepared to develop, implement, and annually document all security measures, including video surveillance, record maintenance, and a host of others.
• Federal policy continues to prevent cannabis business owners from fully accessing their organization’s powers.
• A profile in the Ganjapreneur Business Index also comes with additional features and marketing tools.
• The state was the first to enshrine such social justice goals into its cannabis law, paving the way for others, including New York and Illinois, to follow suit, though disadvantaged small businesses often still struggle to stay out of the red.

Colorado and Washington State both maintain publicly available listings of licensed cannabis businesses. The Colorado Department of Revenue publishes lists of licensed cannabis facilities on their https://www.bookstime.com/ state website. The listings reported approximately 2200 licensed Colorado facilities for retail stores, retail manufacturing, retail cultivation, and medical cultivation for December 2018.

We fully understand the accounting, bookkeeping, cash flow management, and business tax nuances that come with being distributed, and we love helping our clients overcome these challenges through our own experience and expertise. Packed with education, proven modules, systems, workpapers, and templates, our program guides accounting professionals and owner/operators along every step of the way, allowing for us to implement these tools on day one to help cannabis and CBD businesses operate compliantly. Navigating the complex landscape of cannabis taxation requires a deep understanding of the Internal Revenue Code280E, which governs the tax treatment of businesses involved in the sale of controlled substances, including cannabis. Our experienced cannabis accountants are well-versed in this code and will work closely with you to maximize your tax deductions while ensuring compliance with all relevant regulations. We’ll help you minimize your tax liability, optimize your financial performance, and keep your business running smoothly.

Protecting your finances and inventory