Cannabis Accounting, Tax Business Advisory Services : Cherry Bekaert

Cannabis Accounting, Tax Business Advisory Services : Cherry Bekaert

The National Association of Cannabis Accounting and Tax Professionals (NACAT Pros) was founded to standardize bookkeeping, accounting, and tax practices in the Cannabis industries. Your client can soon say hello to affordable banking while you smile ahead at the new realm of possibility for their future. With many dispensaries looking to expand their operations, the presence of 280E confines businesses and prevents them from scaling upward.

How Hard it is for Cannabis Companies to Set up Their Business Structures

Eight of the Certified Public Accountant respondents indicated that the primary reason to avoid the industry was because the industry is federally illegal and/or they feared federal criminal prosecution. Four indicated that the special tax requirements and nuances with the tax code were not worth the extra technical training necessary to service what would be a niche industry. In addition, three worried that serving CRBs would jeopardize medical marijuana accounting their Certified Public Accountant license. Table 4 shows the counts and percentages of Certified Public Accountants responding to the primary reasons they would not serve the cannabis industry. There are a growing number of cannabis-related businesses (CRBs) in the USA as many states have legalized cannabis for medical and/or recreational use even though it remains illegal at the federal level under the Controlled Substances Act (CSA).

Neglecting accounting software

With our personalized approach, extensive industry knowledge, and commitment to excellence, we are here to ensure that your financial operations are in compliance, optimized for growth, and positioned for long-term success. A Certified Public Accountant entering the cannabis industry should expect continuous learning for the industry. First, the Certified Public Accountant should check with the state board of accountancy to determine if there is any guidance for Certified Public Accountants in that state related to the cannabis industry.

Financial Strategies

TreeStar Solutions is a leading accounting firm specializing in providing comprehensive financial services to all types of businesses, including cannabis dispensaries, growers, manufacturers, producers, transportation services, and more. Our tailored approach incorporates a robust 4-part system, offering expert guidance, cutting-edge tools, efficient work papers, streamlined processes, and top-notch accounting and tax solutions. With a track record of supporting over 800+ professionals, we empower businesses to rapidly establish world-class accounting practices and accelerate their growth within a short timeframe. With legalization spreading rapidly across the nation, the cannabis industry is only just beginning to thrive. Faced with an absence of large accounting firms in the high-growth, complex space, cannabis companies must adapt their financial practices to keep up with an increasingly competitive landscape and ultimately stay in business.

the basic cannabis CPA package

Tax advantages for businesses are beneficial, but many cannabis businesses may only deduct a limited amount. If they can’t find a bank, many pot shops have only to accept cash, which puts them at risk of losing the money they need. Robberies also force dispensaries to give up their money and marijuana products.

Qualification for the ballot in 2024 is the latest chapter in South Dakota’s years-long debate over cannabis policy. In 2020, South Dakota became the first state in the country to legalize medical cannabis and adult-use cannabis on the same ballot. Following the election, Gov. Kristi Noem orchestrated a lawsuit that ultimately repealed the legalization law approved by 54% of voters. At the same time, she attempted but failed to pass legislation in Pierre to severely delay implementation of the state’s medical cannabis law, approved by 70% of voters.

• A future study could compare the findings from mature states and developing states.
• Ranked among the largest accounting, audit, tax and advisory firms in the U.S., Cherry Bekaert serves clients across all 50 states and internationally.
• For example, the Colorado Society of Certified Public Accountants holds an annual symposium for Certified Public Accountants interested in the cannabis industry.
• Everything from properly on-boarding your Cannabis/CBD/hemp client, setting up a perpetual data room, month-end tie-outs, day-to-day bookkeeping, etc.
• Banking – establishing relationships with financial institutions able to transact business within the cannabis industry.

Accounting help for Cannabis Companies in Mississippi

When asked to describe their cannabis client acceptance procedures, all five of the Certified Public Accountants working with the industry indicated that they try to get to know the client much like any other potential engagement. https://www.bookstime.com/ Table 12 summarizes the client acceptance procedures described by Certified Public Accountants that service the industry. The study utilized the five steps of the data analysis process from Creswell and Creswell (2018).

• Whether you’re an accounting professional or a Cannabis business owner, you’ll learn the ins and outs of Cannabis accounting so that you can better understand how to be complaint in this industry.
• Legal compliance rides on being aware of how fundamental accounting activities — bookkeeping, cost accounting, clean-up, payroll, audit trails and financial reporting — interact with state and federal cannabis laws.
• Are you a CPA who works in the industry, or do you represent a cannabis accounting firm?
• If you try to do your payroll and don’t record everything perfectly, you can have a lot of money.
• But under the coming tax changes, they would probably only have to pay one-tenth of that, about $280 million, according to a study from FTI Consulting, a management consulting firm.
• Cannabis stores and products that operate in four-fifths of states are regulated by state rules and aren’t in compliance with the CSA or the Food and Drug Administration.
• Everything is digital, including the accounting and finance software for your business.