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Cannabis

AAFCPAs has been helping cannabis businesses successfully navigate their unique challenges since the inception of Registered Marijuana Dispensaries (RMDs) in Massachusetts.

Cannabis

Advisory, Tax, Accounting & Assurance Solutions for Cannabis Businesses

AAFCPAs has a proven track record of effectively advising the Massachusetts cannabis industry, including: dispensaries, growers, distributors, retailers, and other commercial enterprises. Our blend of Commercial and Nonprofit company expertise, and 45+ years’ success in serving both, makes us uniquely qualified to assist cannabis businesses as they navigate the complexities of medical and recreational cannabis markets. AAFCPAs has a suite of proven solutions, and the depth & expertise to support your current and evolving needs.

AAFCPAs business advisory solutions for cannabis businesses include:

Entity Structure & Business Operation Solutions:

  • 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 (ASC Topic 905)

Business Valuation Solutions:

  • Buy/sell agreements
  • Conversion to for-profit
  • Admitting shareholders
  • 409a valuations
  • Valuation of stock options

Nonprofit Conversion to For-Profit:

  • Preparation of conversion documents: nonprofit to for-profit; for-profit corporation to an LLC
  • Corporate votes and consents effecting the conversion
  • Drafting amended bylaws

Tax Planning and Compliance Solutions:

  • Tax planning & preparation of federal and state income tax returns
  • Research of feasibility and 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 

Business Process & IT Advisory Solutions

  • Business process controls & performance improvements
  • ERP “seed to sale” system selection
  • Cybersecurity assessments
  • HIPAA & privacy assessments
  • Data analytics and fraud detection
  • Leveraging the cloud
  • IT strategy

Outsourced, Cloud-based Accounting Solutions:

  • Remote, cloud-based accounting and bookkeeping
  • Budgeting and forecasting
  • Monthly internal financial statements in accordance with revised SSARS No. 21
  • Implementation of new accounting standards
  • Audit preparation
  • High-level CFO oversight & strategic planning

Audit of Financial Statements

Review of Financial Statements

Compilation of Financial Statements

Preparation of Financial Statements

 

We proactively recommend tax savings, and provide assurance and business operations advice as needed by your executives and owners.  Additionally, AAFCPAs’ multi-disciplinary team includes CPAs, estate planning & tax attorneys, wealth advisors, as well as business valuation and IT security professionals.  Our specialists will help you preserver through the increased complexity of running a sustainable, high-performing cannabis company.