About Us: Why Choose the Andersen CPA Firm?
Cannabis CPA Tax is a practice area of the Andersen CPA Firm, a blending of a traditional CPA firm with cannabis-specific expertise. Our work with cannabis businesses started in 2006 with the changes in California law at that time. We have taken dozens of cannabis companies through their start-up phase. As our client base grows, we deploy resources as needed in the areas of tax, audit, accounting, and consulting to help them achieve their goals and maximize value.
We craft our service offerings to each client. If you are a grower only, you will be managed much differently than a manufacturer and distributor. We understand the differences of reporting taxes at the local, state, and federal levels.
The parts of the cannabis industry that we represent are: cannabis accessories, retailers, distributors, cultivation suppliers, cultivators, equipment, security, waste management, delivery service, and hemp products. This list grows each month.
We learn new things from each client due to their experience in the industry. We, in turn, help our clients to become better business operators by helping with best practices in our areas of expertise: tax, audit, accounting, and systems.
We provide a wide variety of cannabis-specific services including:
- Business entity selection and structuring
- Tax planning, computations, and reporting at local, state, and federal levels
- Tax auditing at local, state, and federal levels
- Systems evaluation, selection, and implementation, including seed-to-sale as well as general accounting
- Business operations including compliance and internal controls
- Business planning to include annual business plans to multi-year strategic business plans
- KPIs (Key Performance Indicators) for each individual business
- Fractional CFO services
- Outsourced accounting services
Top Cannabis Tax and Accounting Issues We See:
- Tax entity – corporation, S or C, LLC, partnership?
- 280e considerations – how does it apply to each cannabis business segment (grow, manufacture, distribute, retail) as well as business tax type?
- Local taxes – how and when to report and collect?
- State taxes – cannabis tax and distributor excise tax: who owes, who collects, who pays?
- Income taxes – how to optimize tax liabilities?
- Tax audits – in cannabis industry not a question of IF you will be audited but WHEN and how many times? How to be audit ready?
- Cash flow forecasting – how to know you have money to pay taxes and everything else AND know that the business is profitable?
- Seed-to-sale software – do you need it; what is the best; how to be sure it works properly?
- Accounting system – does it report correctly by business unit (grow, manufacture, sell); does it interface with seed-to-sale; is your staff trained properly to operate the system?
- Business valuation – on one hand this is like throwing darts, on the other hand, some metrics can be deployed to help chart value.
