Tax, Advisory, Accounting & Assurance Solutions for Cannabis Businesses
AAFCPAs has been deeply immersed in serving cannabis businesses since 2012. As the first full-service CPA and Consulting firm to advise Massachusetts cannabis companies, we have over 10+ years of proven cannabis experience nationally.
Regulations are complex, vary by state, and continue to evolve–and, the gap between federal and state law remains a challenge for operators. We help clients navigate federal regulations as well as the nuances of the states in which they operate.
Nationwide Cannabis Authority
We are recognized as a national leader serving cannabis operators, including those seeking licensure or expansion in newly legalized states. AAFCPAs provides tax, audit, accounting, and consulting solutions to Cannabis Businesses across the United States, including Arizona, California, Colorado, Connecticut, Delaware, Georgia, Illinois, Massachusetts, Maine, Michigan, New York, New Hampshire, New Jersey, New Mexico, Ohio, Oklahoma, Pennsylvania, Rhode Island, and Vermont, and new states as they come online.
Tax Strategies for 280E
AAFCPAs’ expertise was recently sought by the U.S. Treasury and Senate Finance Committee for guidance on critical considerations regarding the 280E transition following DEA rescheduling news. As a key advisor through the AICPA, AAFCPAs provides insights to shape regulatory guidance on this issue.
Given the current state of rescheduling and the recent uncertain tax positions taken by leading MSOs, AAFCPAs is well-positioned to advise clients on the pros and cons of a non-IRC 280E approach. We support clients in making informed decisions based on their financial situation, risk profile, and other relevant factors. Our services include analyzing and disclosing specific tax positions, navigating IRS scrutiny, and considering timing implications.
Additionally, we offer strategic tax advice on optimizing Cost of Goods Sold (COGS), implementing ESOP structures, and utilizing 471C strategies. These strategies impact taxation, accounting methods, and audit readiness. Given the slim cash flow and narrow margins in the cannabis industry, taxation remains a significant challenge. Until rescheduling occurs, AAFCPAs ensures clients are well-informed about the strategies they can implement now.
AAFCPAs State & Local Tax Advisors help multistate operators streamline indirect tax compliance and scale for continued growth. We don’t just manage your tax compliance — we reduce your administrative burden & costs.
Seed to Sale Cannabis Consulting
CannCount intimately understands the challenges faced within the cannabis industry, helping operators better compete and thrive. A wholly owned subsidiary of AAFCPAs, CannCount provides high-level consulting and data-driven analysis designed to improve finances, operations, and cultivation for established cannabis operators, investors, growers, manufacturers, wholesalers, retailers, and start-ups nationwide. Gain specialized industry expertise along with valuable insight to drive cash flow improvement, growth plans, and M&A strategies. Learn More >>
Outsourced Accounting & Finance for Cannabis Businesses
Many of AAFCPAs’ Cannabis clients also leverage our Outsourced Accounting & Fractional CFO practice to outsource all or part of their accounting function. We provide the right resources at the right time — from Consulting CFOs and Controllers to transactional staff accountants — to provide knowledgeable financial leadership and accounting oversight.
Our Consulting CFOs & Controllers have extensive experience providing operators with meaningful financial planning & analysis, including cash flow projections, forecasting, sales & inventory analysis, and other KPIs.
AAFCPAs: An ideal fit for your Cannabis business
- We advise clients on risks and opportunities related to accounting methods, capital structure, debt financing, R&D, M&A, and goodwill impairment.
- We advise clients on traditional cost accounting methodologies enhanced with contemporary approaches, including activity-based costing and lean manufacturing.
- We understand GAAP, Cost Accounting, and 280E compliance and continuously monitor changes in tax laws.
- We regularly attend and speak at national, regional, and local industry events. This helps us keep our finger on the pulse of the industry and allows us to share trends, best practices, and strengthen our deep networks.
- Our network includes leading entrepreneurs and professionals in the cannabis industry, including attorneys, bankers, employee compensation and benefits providers, realtors, risk managers and insurance agents.
- AAFCPAs’ multi-disciplinary team includes CPAs, CFOs, consulting estate planning & Tax Attorneys, wealth advisors, as well as IT & Cyber security professionals. Our specialists will help you thrive while navigating the increased complexity of running a sustainable, high-performing cannabis company.
Accounting and Consulting for Cannabis Businesses
Tax Advisory and Compliance:
- Tax planning & preparation of federal and state income tax returns
- Multistate, indirect tax compliance
- Research of feasibility & applicability of tax credits
- Consultation on sales and use tax filings
- Compliance and research with 280E issues
- The pros and cons of various entity structures for registered dispensaries
Entity Structure & Business Operations:
- Entity structure consulting
- Evaluation of financial projections, and guidance with applications and reporting
- Financing and lending arrangements
- Internal financial modeling
- Cost allocation procedures
- Cost segregation assistance
- Inventory costing modeling
- Guidance on optimizing deductibility of direct and indirect costs related to growing cannabis, and operating growth facilities
- Valuation of agricultural inventory
Business Transaction Advisory:
- Evaluation of exit options
- Assessing license agreements
- Assessment of personal, business, and market timing
- Due diligence processes
- Cash flow projections
- Transaction structure analysis
- Analysis of financial documents to objectively determine the quality, viability, and stability of revenues, cash flows, and profitability
Assurance:
- Audit of Financial Statements
- Review of Financial Statements
- Compilation of Financial Statements
- Preparation of Financial Statements
Outsourced, Cloud-based Accounting:
- Remote, cloud-based transactional accounting
- Accounting chart of accounts and infrastructure set-up
- Monthly accounting
- Cost accounting
- Inventory Accounting
- Budgeting and forecasting
- Monthly internal financial statements
- Preparation and drafting of annual financial statements and notes
- Audit preparation
CFO/Controller Advisory
- Finance function operations assessments and guidance on right-sizing people, processes, and technology
- Cash management, financial forecasts & projections in collaboration with your team
- Custom reporting for funders (Private Equity & Venture Capital Investors, Owners/Shareholders, Donors, Grants)
- Board and finance committee meeting preparation and presentations
- Providing supporting documentation for bonus/incentive compensation
- Developing & reporting on Key Performance Indicators
Business Process & IT Consulting:
- Business process controls & performance improvements
- Robotic Process Automation
- Cybersecurity assessments
- Data Analytics & Data Visualization
- Fraud Detection
- Migration to Cloud Computing
- IT Strategy and Risk Management
*The advice provided by AAFCPAs’ Tax Consulting Attorneys is in a consulting capacity only and cannot be considered legal advice or a legal opinion and is not a substitute for the advice of legal counsel.