Cannabis Business Services / Bookkeeping for Marijuana Businesses

So you and a Business Partner decided to get into the cannabis industry. If you have any other business experience, you may have put together a business plan with a financial pro forma and you are probably thinking you’ll just have your bookkeeper set up Quickbooks and proceed like NORML. And right there, before the first clone roots or any decarboxylation happens, you’ve already made a tragic mistake. Bookkeeping, accounting and tax planning are very different for businesses that come under IRC 280E and require an entirely different mindset.

You can rest assured that your business will be audited by any number of federal, state and local entities for as many items as they can conceive and as often as they can, including income tax, sales and use tax, excise tax, payroll tax and Form 8300, to name a few. With just the Cole memo and court cases like CHAMPS and Olive, there is precious little guidance out there. To help keep your business in compliance with 280E, we can establish a bookkeeping policy manual and build your chart of accounts to segregate between 280E and non-280E items, and each month we can do the following things for you:

• Enter and split transactions for 280E and non-280E
• Identify and account for 471 and potential 263A transactions for either vertically-integrated operations or stand-alone businesses
• Build reports to tie back to your seed-to-sale software
• Build reports to help you comply with Form 8300 reporting

At the end of the day, the foundation to your business’ audit defense will be your bookkeeping and ability to substantiate income adjustments and expenses.

Take a moment and give Jeff a call at 561-235-2829 and let's see what we can do about getting you home at a reasonable hour.