Often it is seen that these companies approach other accounting firms who refuse to take their work due to the stigma attached by clients and business stakeholders who are conservative in their views …
Often it is seen that these companies approach other accounting firms who refuse to take their work due to the stigma attached by clients and business stakeholders who are conservative in their views towards anything related with cannabis. Fortunately, these companies now do not face such difficulty as some specialist cannabis accounting firms have come up which cater specially to the needs and requirements of cannabis industries. A leading marijuana CPA firm offers its accounting services to growers, distributors, and partners.
Whether you are a newcomer or an experienced cannabis grower, you will have to face and deal with complex set of rules and regulations related to cannabis cultivation which is no less than a major headache itself. Looking from an operational and financial perspective, companies that grow, sell, and distribute marijuana are similar to any other commercial entities. Growing facilities have revenues, direct and indirect costs, and selling general and administrative expenses. However, there are striking differences that govern the taxation and accounting of traditional manufacturing organization and one which is concerned with growing and cultivation of marijuana.
The 280E Form is akin to tax nightmare that has created a huge set of problems for any business directly involved in either the cultivation or sales of cannabis. Fortunately for them, they can limit their tax liabilities with Cost Of Goods Sold deductions by hiring the services of a vastly experienced cannabis accounting firm which can help you to limit any unnecessary tax exposure. There are some common and most frequently questions lurking on the minds of cannabis cultivators which are answered by experienced experts to satisfy their concerns. Here are some of them.
What Deductions Are Available To My Business?
Some of the items that are permitted as COGS deductions are raw materials, supplies and direct labor costs. If you prepare your financial reports in compliance with GAAP, you are allowed by IRS to claim some additional COGS deductions. As a marijuana grower, it is important for you to work with certified public accounts that have an intimate knowledge of the legal framework which governs the taxation of a marijuana business.
What Are Licensing Requirements For Marijuana Growers In Colorado ?
In Colorado, growers are controlled by the Medical Marijuana Regulation and Safety Act, which requires specific licenses. A marijuana business should obtain the proper licensing with the state in order to ensure that they do not face any problem in future. Special attention has to be paid in understanding the complexities of what are the licenses that need to be obtained in order to be deemed legal.
How Do I Obtain Banking For My Business?
Cannabis producers often face tough time finding accounting firms and financial institutions that are willing to do their work. However, it may be tough but not impossible. With the help and support of an expert marijuana CPA firm, you can find the right bank for your needs.
Coming to conclusionHealth Fitness Articles, we can say that cannabis growers can benefit from the services of an experienced accounting firm that is well-versed with the regulations set in place by local laws of the state.