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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’ blend of Nonprofit and Commercial company expertise, and 40+ years’ success in serving both, makes us uniquely qualified to assist you as you navigate through this complex and burgeoning industry.

AAFCPAs has a proven track record of effectively advising the Massachusetts cannabis industry on: audit and assurance; tax planning and preparation; entity structure; financing structures; business plans; development of the state’s management and operations profile; financial projections; cost allocations; accounting operations; and more.

AAFCPAs business advisory solutions for cannabis businesses include:

Advisory:

  • Entity structure
  • Financial projections review, and other reporting needed in the Application Process with the Commonwealth of Massachusetts
  • Financing & lending arrangements
  • Chart of accounts and other internal financial modeling
  • Cost allocation procedures
  • Cost segregation assistance
  • Inventory costing modeling
  • Business process improvements

Tax Planning & Compliance:

Certain states, including Massachusetts, require medical cannabis dispensaries to organize as a not for profit, and balancing this legal requirement with the need to compensate lenders/investors for their capital at risk requires thoughtful deliberation. AAFCPAs’ preeminent tax professionals advise registered marijuana dispensaries (RMDs) on entity structure and work in concert with legal tax counsel to ensure preferred tax results, with a focus on preserving cash and maximizing lender/investor value.

  • Tax planning and preparation
  • 280E Compliance
  • Research of feasibility and applicability of tax credits
  • Consultation on sales and use tax and relating filings

Managed Accounting Solutions:

  • Outsourced, cloud-based accounting and bookkeeping
  • Financial projections and operating and cash flow budgets
  • Monthly internal financial statements and reporting to investors
    • Financial statements in accordance with revised SSARS No. 21
  • CFO Advisory

Assurance:

The Cannabis industry presents unique reporting challenges when there are external use financial statements issued, which have either an audit opinion or review report attached. AAFCPAs is uniquely positioned to provide education to both the issuer and the users of external use financial statements regarding the reporting nuances inherent in this industry.

  • Compilation, review or audit of financial statements
  • Assistance with management-only financial statements
  • Guidance to optimize deductibility of direct and indirect costs related to growing cannabis, and operating growth facilities
  • Valuation of agricultural inventory (ASC Topic 905)

No matter the challenge, AAFCPAs delivers practical and enduring results. We bring deep, functional expertise with a holistic approach. Since 1973, we have been helping our clients make lasting improvements to their performance and realize their most important goals. We realize every situation is unique. We look forward to speaking with you to determine how we may best solve your needs.