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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, has made 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.

Our tax expertise and industry knowledge combine for sound strategy and recommended tax savings. We provide assurance and business operations advice as needed by your executives and owners. Additionally, AAFCPAs’ multi-disciplinary team includes CPAs, consulting 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.

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 Advisory 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
  • IT Risk Management

Outsourced, Cloud-based Accounting Solutions:

  • Remote, cloud-based accounting and bookkeeping
  • Finance function operations assessments
  • Accounting infrastructure set-up
  • Monthly accounting & bookkeeping
  • Budgeting and forecasting
  • Cost accounting
  • Guidance on right-sizing people, processes, and systems
  • Monthly internal financial statements in accordance with revised SSARS No. 21
  • Implementation of new accounting standards
  • Audit preparation
  • CFO oversight & strategic planning, and controller services

Audit of Financial Statements

Review of Financial Statements

Compilation of Financial Statements

Preparation of Financial Statements

“AAFCPAs delivers on all their promises. They have full command of the nuances of the complex Cannabis industry. They provide honest and direct feedback on our financial performance. Their Managed Accounting Solutions help us execute on our growth plans utilizing best-practices in the industry. We utilize their tax expertise to make decisions that minimize our tax burden. They are a great value to me and our organization and I highly recommend their services and people.”

Cultivate Holdings, Inc. | Stephen Barber, Chief Executive Officer