Why does my company need an expert in Cannabis accounting?
Due the highly regulated cannabis, CBD, and hemp industries you need an accounting expert that understands and is able to navigate the complexities associated with these industries. Cannabis accounting is inherently complex with many specific rules and regulations that must be properly followed. Failure to follow the maze of regulations and accounting complexities can result in severe penalties, suspension or loss of your license, and in some instances jail time. Due to the consequences of an involuntary violation of the regulations it is best to invest in a proactive accounting system to maintain your records and report the operations of your business.
What Calvin & Pete, LLC will do for you:
Provide – Full absorption cost accounting to comply with IRC Section 471
If your company currently does not comply with IRC Section 471 you are not using the tax code to the fullest advantage to legally reduce your income taxes.
Provide – reporting for Improved cash flow
Through the use of a 180 day rolling cash forecast you will always have a projection of the amount of funds needed to operate your business
Provide – Rock solid, world class accounting
A world class accounting system to aide access to investor capital, can survive any state or federal audit, includes data entry, reconciliations, payroll, and a month end system to review for errors in your accounting records. Also includes a perpetual data room owned by the business. Allows you to better manage your company
Provide – Fractional CFO services
The Chief Financial Officer (CFO) has the primary responsibility for the implementation, managing, and running of all the finance activities of the company, including business planning, budgeting, forecasting and negotiations. As part of the executive management team, the CFO will have interaction with various members of the company, both senior and junior members. The CFO also assists and provides strategic and business planning, fraud risk management, and internal controls.
Provide – Expert knowledge of IRC Sections 280E and 471
While Section 280E is only one sentence, as with most IRC sections, it has many nuances. Court cases have shown that running afoul of Sections 280E and 471 results in large fines, penalties, and interest. You need an experienced and knowledgeable team of experts to remain in compliance with these IRC sections.
They are the only accountants I’ve used that could explain the tax law in terms that makes it easy to understand.
The Perpetual Data Room they implemented is a huge time saver when applying for funding or seeking investors. The information is kept up to date and available anytime. The information we need to operate is logically filed and easy to locate.
In my experience hiring the least expensive accountant ends up costing considerably more, not only financially but also in “emotional capital”. Based on my 40 plus years of being in business (non-canna & canna) I’ve found that hiring the most qualified accountant (yes, that means firms that generally charge higher fees for the value they provide) allows me to spend less time worrying (emotional capital) and can concentrate on expanding my business. Their fees are not an expense, it’s an investment I make in my business.
The tax planning they provided was integrated into the 180 day rolling cash forecast. Rarely was there an unexpected need for funds to pay income taxes or for the day to day cash needs. It was an eye opener to actually see the estimated tax liability grow through out the year. I no longer have to worry about the dreaded tax filing deadline since the amount due was projected and planned for throughout the year.