All businesses need a solid accounting system. Cannabis companies need it even more in an area of regulation that seems to be a moving target.

Major Areas of Accounting

Accounting Software

As in other areas of Small Business, QuickBooks dominates in the cannabis space. We have taken the implementation of QuickBooks as it applies to the cannabis industry to a whole new level. Learn more about how we work with QuickBooks and cannabis operators.

Cash Flow/Budgeting

Cannabis companies are expensive to get into and cost money to keep competitive. We work with our clients to develop cash flow projections to keep you aware of your cash needs.

We also develop budgets so growth can be managed, both for the short run and the long haul.

Financial/Managerial

Financial accounting is needed to report to owners and investors about how the business is doing. Any investment will need a good set of financials. As you grow, the business will need historical reporting of balance sheets and P&Ls. This is also required by banks, loan officers, and both outside and internal investors.

In addition to this, the best businesses have good metrics to work from. Knowing and managing your key performance indicators (“KPIs”) are critical. This comes from knowing the business and the industry.

KPIs are a part of managerial accounting. It includes all of the operating information that managers and owners want to know.

Managerial accounting can answer questions like:

  • What is your rate of sales growth, month over month?
  • For each product grown, what is the cost per pound?
  • How does the cost to grow differ for an outdoor vs. an indoor grow?
  • What is the unit cost of each product that is manufactured?
  • What is the cost of running a grow operation vs. a dispensary?
  • If there are several dispensaries, how do they each rank, by both gross and net?

Tax Reporting

Any and all tax reporting must have a solid system which can validate all of the reporting, whether at local license, state, or federal income tax level. Not just dollars, but units sold, and type of sales. All of your tax reporting must match, or “tie out.”  The best way to do this is to generate and produce all of the tax reporting from one accounting system, not a series of excel spreadsheets.

With our experience in a wide range of industries and a variety of business sizes, we can tailor all of your financial and accounting needs to optimize your reporting, build your company to be the best, and create maximum value for your business.