Marijuana Accounting Dark Horse

cannabis bookkeeping

Cash-only businesses can be challenging to manage, and those in the cannabis business are no exception. With this ebook, you will be able to more fully understand what processes and controls need to be in place so your business medical marijuana accounting can be both compliant and profitable. You’ll also have a better idea of what a trained Cannabis accountant should know and how to make better decisions to ensure that your business is on track to grow amid this booming industry.

cannabis bookkeeping


• CBM Network—Teaches accountants about cannabis accounting, cannabis taxes, and what to do as a cannabis bookkeeper, cannabis accountant, or cannabis business owner. Whether outsourcing professional bookkeeping services or hiring an internal bookkeeper, cannabis businesses benefit greatly from having their books handled by people who have experience in the industry. We’ll treat your cannabis business with the same level of care and attention to detail as any other Dark Horse business client. Accountabis Advisors offers a comprehensive accounting service to cannabis professionals seeking fiscal efficiency and accuracy.

Current Legal Analysis

Moreover, based on the tax collected, it will be easier for them to plan, using the expected tax refunds for business operations. These components include providing organized books and accurate financial reports that show effective internal controls and accounting policies. Since many of these principles are not required for everyday small business accounting, a generalist accountant may not be familiar with them. Cannabis accounting processes, as a result, must implement complete record-keeping to ensure a compliant inventory environment. However, you may still be able to find a bank that can work with your cannabis business. These issues are unique to the industry and require their operators to be extra careful when keeping their books accurate and organized.


  • Dext Commerce – saves you time by automating your client’s sales data retrieval from online eCommerce marketplaces and digital payment methods.
  • We provide first-class services to high-risk businesses, keeping them ahead of their taxes.
  • One of the biggest questions potential clients ask me is, “What do your cannabis accounting services cost?
  • 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.
  • • CPA Academy—A leading organization that has a specific course for bookkeeping beginners who are working in the cannabis industry.
  • And with your professional help, they won’t have to, especially when the FDA and GMP regulators start weighing in to create — and impose — strict guidelines.

Cannabis business owners will probably not be aware that their accounting line item will be 1-2% of topline revenue or that the actual number may vary based on their services, levels, and add-ons. Specialist cannabis accountants, such as yourself, can help to protect your client’s profits by ensuring compliance, conducting reconciliation, and helping with forecasting. As a leading cannabis accounting firm and cannabis CFO firm, we are committed to providing reliable and efficient financial solutions tailored to meet your specific needs.

  • Among an accountant’s first ports of call could be to gain an overview of operations by fully comprehending each step of the supply chain from seed to sale.
  • The stakes are high for cannabis CEOs, and the fate of their business rests in having an accounting team that understands what is necessary in order to keep their business compliant so that they aren’t penalized or shut down.
  • Marcum was among the first national accounting and advisory firms to establish a practice dedicated to serving the cannabis industry.
  • These sub-niches include farming, processing, manufacture, labs, distribution and retail, and many times all of those will fall under the same company.
  • Marcum LLP is a national accounting and advisory services firm dedicated to helping entrepreneurial, middle-market companies and high net worth individuals achieve their goals.

cannabis bookkeeping

She now pays multiple business owners at her family-run dispensary, 6 Brick’s, because of a part of the United States tax code that applies to illicit businesses, including those selling marijuana. It poses a stunning obstacle, she said, to eking out profits, expanding operations, or raising wages. Our services include tax preparation, strategic tax planning, bookkeeping, outsourced accounting and Fraction CFO services to maximize the money your business earns and the money you keep as an owner. We blend our extensive tax, accounting and financial advisory knowledge with industry expertise to give you a best-in-class cannabis accountant experience.

  • With competitors breathing down their necks, people are hesitant to give away details on their plans.
  • We believe you deserve a partner and an advocate, not someone who feels conflicted or lacks competence.
  • “It allows us to think bigger and have more flexibility with our margins,” he added.
  • The information contained in this website is meant only for guidance purposes and not as professional legal or tax advice.
  • Moreover, for any transaction or a series of transactions that total $10,000 or more in cash, cannabis businesses have to prepare Form 8300 for tax purposes, the filing of which can be confusing with errors resulting in serious fines and audits.
  • In fact, many CPAs have chosen to not serve in this industry, meaning most Cannabis companies have bookkeepers doing the day to day books.

5 myths about marijuana and the accounting industry – Accounting Today

5 myths about marijuana and the accounting industry.

Posted: Thu, 25 May 2023 07:00:00 GMT [source]

Each requires various reporting under the many legislations at the state and federal levels. Even for pre-revenue companies, having a comprehensive bookkeeping system in place is essential at the beginning of your journey, when you will need to know how much was spent on what. Without proper tracking of day-to-day expenditures and transactions, your bookkeeping logs might become a nightmare with a higher tendency for errors.

cannabis bookkeeping

CFO Strategy for Cannabis

  • It would shift cannabis out of the category of substances subject to part of the tax code called Section 280E.
  • But clients rely on you to keep track of case outcomes, the latest in the regulatory landscape and the pace of impending changes.
  • Though there aren’t many bookkeeping systems specifically designed for cannabis accounting firms or cannabis business owners, maintaining proper accounting records is still essential.
  • Stay compliant and be prepared for an audit by working with an accounting firm, outsourced CFO, or bookkeeping service who specializes in serving cannabis industry clients.
  • Every state that permits cannabis operators has ultra-strict guidelines to monitor the operation “from seed to sale” and at each mile marker along the way.
  • Excel is a spreadsheet program designed to keep business-related information organized.