ACCOUNTING SERVICES FOR CANNABIS

Comprehensive accounting support provided with the patience and structure needed to keep things on track in a heavily regulated, transparent, and socially conscientious driven industry.

 

• Ongoing support for an in-house bookkeeper or office manager, including templates, virtual meetings, and trainings;

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• Monthly and quarterly detail reviews of in-house accounting entries, including written recommendations;

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• Full bookkeeping process implementation and management;

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• Cost accounting for revenue sources, projects, and other agreements.

 

Annual financial statement preparedness with an accounting system, processes, and records management aligned with the reporting requirements of the AFS compliance procedures.

 

• Record keeping checklists and file management by AFS procedure;

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• Accounting system setup and procedural documentation to assist with compliant data entry;

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• Reconciliation, review, and discrepancy reporting between METRC, point of sale/seed to sale system, and general ledger.

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Chart of accounts customization supporting accounting for inventory in conformance with IRC § 471 and increased transparency for adjustments for cost of goods sold and record keeping compliance under IRC § 280E.

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• Detailed inventory accounts for direct and indirect expenditure costing incorporating IRC § 471 regulations for producers and retailers;

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• Mirrored cost of goods sold accounts for enhanced reporting detail;

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• Tracking for adult use vs. medical transactions and the ability to independently capture expense deductions limited by § 280E but generally allowed for MRTMA licensees.

 

Inventory cost calculation and analysis to help determine appropriate overhead allocation and inventory capitalization inclusions.

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• Floor plan use analysis;

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• Direct and indirect expenditures includible in the full absorption inventory capitalization method for manufacturers under § 1.471-11;

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• Overhead calculations for utilities, equipment use, labor, and other shared costs associated with cultivation, processing, and transportation activities;

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• Consulting related to § 280E limitations and methodology;

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• Selling, general and administrative cost analysis, discussion, and recommendations.

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Management reporting including support for internal management, investors, and banking relationship reporting requirements.

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• Financial report preparation and presentation assistance;

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• What-if scenario forecasting and break even analysis;

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• Key performance indicator discussion and reporting;

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• Financial statement forecast and cash flow forecast preparation;

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• Budget preparation, and budget to actual reporting and discussion;

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• Accounting system integration support, maintenance, and report customization.

 

Tax matter services that focus on the distinctions particular to the marijuana industry, both at the federal and state levels.

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• Industry tax compliance, emerging issues, and other matters discussion and analysis;

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• Sales and excise tax calculations, form preparation, and forecasting;

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• Income tax form preparation and filing;

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• Entity tax structuring discussion, analysis, and recommendations;

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• Corporate income tax and flow through taxable income estimate calculations.

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