ACCOUNTING BEST PRACTICES
For Compliance, Planning, and Growth for Cannabis Businesses
Accounting Best Practices
This presentation, Accounting Best Practices, was originally presented as an Education Session on May 16th, 2024, in cooperation with and hosted by the Michigan Cannabis Regulatory Agency, to an audience of Michigan cannabis business licensees and other industry stakeholders.​
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Disclaimer: The information contained within this document is highly summarized and should not be construed to be complete or used as a sole source of information, nor should it be relied upon, interpreted, or used as any type of authority, advice, or opinion, in any form. The information is applicable as of the original publish date. All citations related to federal income tax codes and regulations within this document are abbreviated for readability purposes only, however are intended to be clear as to the sections and subparagraphs referenced. The content is provided for general purposes only; all information within should be independently verified. The use of this disclaimer does not affect the degree of care given to the summary information written or sources referenced. Please contact your tax advisor to discuss any topics pertaining to your business or situation.
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Learning Objectives:
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Tips for an accounting system chart of accounts structure;
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Actionable accounting controls, including reconciliations and reviews;
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Inventory valuation and accounting methodologies under Internal Revenue Code 471;
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Tax matters to be aware of related to operating and other agreement type documents;
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Compliance related to accounting method changes for tax purposes.
Implementing and maintaining accounting best practices not only supports increased compliance, but can offer your business the tools needed to understand and sustainably manage its financial planning and growth positions. This presentation aims to provide actionable information for licensees to consider when evaluating and implementing their own accounting systems, controls, and tax compliance initiatives. The presentation will also provide general information regarding accounting for inventory costs using the full absorption method, often applicable for cultivators and processors, and brief tips for all licensees to be aware of in case of changes to federal law and the applicability of IRC Section 280E.
To watch the archive of this webinar, see below.
