Cannabis Business Accountant.

Professional Accounting for the Cannabis Industry

Federal regulations have created a significant strain on the financial side of running a business in the cannabis industry. Because the industry isn’t legal federally, businesses are unable to use banks for their finances, making money tricky to track. That is no problem for the Intentional Accounting team – we have experience with cash-only companies and can help you on your way to professionally organized books. 

Accountants can support the cannabis industry more than a business owner might initially think. Thanks to our in-depth knowledge of the laws and regulations that vary from state to state, our team is able to make sure your business stays in the legal limits of the area it resides in. Ensuring that your company is in compliance with these rules is vital to avoid serious legal action. We are able to help you through all state requirements, from taxes to financial planning to tracking the plants’ movement from grower to consumer. 

3 Taxes You Need to Know About as a Cannabis Business Owner

Aside from federal taxes, there are three major tax types you need to be aware of. These may vary from state to state, but ultimately boil down to:

  • Sales tax — the regular taxes levied on all retail goods
  • State tax — an additional excise tax that is imposed on marijuana only. This tends to run as high as 20-35%
  • Recreational use tax — some states are implementing a tax on recreational use marijuana. Instead of being based on prices, these taxes are calculated based on THC content or weight

We will help make sure you are in compliance with taxes and other regulations, including:

  • The 280E tax code, which disallows tax deductions on expenses imposed by the sale, distribution, and production of a Schedule I substance like marijuana
  • Food and Drug Administration (FDA) regulations, which hasn’t yet approved cannabis, but it is expected to in the near future
  • Good Manufacturing Practice (GMP) regulations, which is not yet uniformly applied due to the delay in FDA approval for cannabis products

Some of the services we specialize in helping cannabis business owners in is:

  • Essential bookkeeping for establishing and maintaining compliant, clean books
  • Providing monthly or quarterly financial statements and guidance on trends from month-to-month or quarter-to-quarter
  • Controller or CFO services for in-depth guidance on improving your workflows, productivity, and profitability
  • Oversight of your in-house finances and regular financial reviews
  • Tax preparation services to ensure you’re getting maximum tax benefits

Give us a call today to get started and learn what you need to know about managing your finances with your cannabis business.