PREPARING FOR YOUR AFS

A Checklist Resource to help Michigan Cannabis businesses prepare for their Annual Financial Statement process, or AFS.

The AFS is an agreed-upon procedures attestation engagement, required by the Michigan Cannabis Regulatory Agency (CRA) and designed to assist the CRA and Licensees to determine whether the Licensee maintained financial compliance during the report period.

This Resource is designed for Michigan Cannabis Cultivators, Processors, Retailers, Secure Transporters, and Safety Compliance Licensees.

Documentation items needed for the AFS procedures and underlying process are listed here in a Checklist format. Additional Tips and expanded information are also included to support the fuller scope of the AFS process. Several of the Tips are meant to help your business prepare ahead of time.

Content is applicable for the 2025 Fiscal Year AFS Report Form, for reports due June 30, 2025, September 30, 2025, December 31, 2025, and March 31, 2026. Content will be updated for the 2026 Fiscal Year, when made available by the CRA.

When choosing a CPA to work with for your AFS, communication, expertise, thoroughness, a commitment to quality, and a positive client experience are some of the important characteristics to consider.

Being prepared is best! Maintaining your accounting records, system, and internal processes with the AFS in mind can help your business have a more efficient and less resource-intensive AFS experience!