Benefits of Working with a Professional Bookkeeper for your Cannabis Business Cannabis businesses should work with a professional bookkeeper and CPA who understand their industry niche thoroughly. Complex tax laws, state legislation, and increased scrutiny require successful companies place a high priority on applying accounting best practices. A professional bookkeeper specializing in the cannabis…
Section 280E and The Marijuana Industry Section 280E & the Marijuana Industry: This presentation was originally presented at the Small Firm Practitioners Conference, hosted by the Michigan Association of CPAs on August 14, 2019. Learn about the application of Internal Revenue Code §280E for marijuana businesses and how costing for inventories under §471 effects…
Business entity structure and tax considerations for a cannabis business. A common question when setting up a new business is what entity structure the business should be. Should it be an LLC? A Corporation? What other options are there and what are the differences between each one? A cannabis entrepreneur may have even more questions. …
Setting Up & Maintaining a Compliant Accounting System — A compliant accounting system requires much more than tracking receipts and entering transactions into a box software or spreadsheet. With good intentions, new businesses generally implement basic accounting processes as their activity develops and the need arises. Too often however, the accounting processes quickly get pushed…
Preparing for and Understanding the Financial Review Process Do you have an understanding of the financial review process? Are your business financial records review ready? Do you have a process in place to ensure compliant accounting and record keeping? Can your business produce an accurate balance sheet and income statement? These are…
How Do Unbanked Businesses Pay Cash Tax Payments to the IRS? The cannabis business largely remains unbanked. While some businesses have limited banking options, for the most part transactions remain in cash. Payments like cash tax payments, can be difficult to make. For some transactions, cash works ok – as long as they…
Ideas for Provisioning Centers to Minimize 280E Impact The amount of taxes they pay is a somewhat rude shock for most provisioning center owners or business managers. Sales tax, excise tax, and income tax are all relatively new to the cannabis industry. (In recent historical terms!) We discuss tips on how provisioning centers can…
How Does 280E Impact Marijuana Businesses? If you are already in the medical cannabis industry, or just beginning to get your toes wet, you have probably heard about the high taxes your business will face. Or the special 280E accounting the business will face. This is mostly true. The reality is some marijuana industry…
Five Tips for Responding to MMFL Financial Deficiencies Applicants for a Medical Marihuana Facility License (MMFL) in Michigan will need to overcome several hurdles in the application process. After submitting and receiving feedback on the application, the last thing an applicant wants to hear is that they have deficiencies or additional information that is being…
Understanding Accounting for Leases Accounting for Leases for Business Owners Lease accounting can be tricky. New accounting standards require a lease to be recognized on the balance sheet as an asset and a liability. This can can present many challenges for businesses in determining the right steps in accounting for leases. At face…