Tax, Advisory, Accounting & Assurance Solutions for Cannabis Businesses
Why is AAFCPAs the Ideal Fit to provide your Cannabis Business with Tax, Accounting, and Advisory Solutions?
- AAFCPAs has been deeply immersed in serving cannabis businesses since 2012. We were the first full-service CPA and Consulting firm to represent Massachusetts cannabis companies.
- AAFCPAs has strategies proven to solve the cannabis industry’s annual $1+ billion income tax challenge: Internal Revenue Code Section 280E
- We advise clients on risks and opportunities related to accounting methods, capital structure, debt financing, R&D, M&A, and goodwill impairment.
- We advise clients on traditional cost accounting methodologies enhanced with contemporary approaches, including activity-based costing and lean manufacturing.
- We understand GAAP, Cost Accounting, and 280E compliance and continuously monitor changes in tax laws.
- We regularly attend and speak at national, regional, and local industry events. This helps us keep our finger on the pulse of the industry and allows us to share trends, best practices, and strengthen our deep networks.
- Our network includes leading entrepreneurs and professionals in the cannabis industry, including attorneys, bankers, employee compensation and benefits providers, realtors, risk managers and insurance agents.
- AAFCPAs’ multi-disciplinary team includes CPAs, CFOs, consulting estate planning & Tax Attorneys, wealth advisors, as well as business valuation and IT & Cyber security professionals. Our specialists will help you thrive while navigating the increased complexity of running a sustainable, high-performing cannabis company.
AAFCPAs’ solutions for cannabis businesses include:
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
Entity Structure & Business Operation Solutions:
- Entity structure consulting
- Evaluation of financial projections, and guidance with applications and reporting
- Investor financing and lending arrangements
- Internal financial modeling
- Cost allocation procedures to maximize deductions under 280E
- 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
- Raising capital
- Purchase and sale of the business
- Admitting shareholders
- 409A valuations
- Valuation of stock options
Business Process & IT Consulting 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 transactional accounting
- Finance function operations assessments
- Accounting infrastructure set-up
- Monthly accounting
- Budgeting and forecasting
- Cost accounting
- Inventory Accounting
- Guidance on right-sizing people, processes, and systems
- Monthly internal financial statements
- Implementation of new accounting standards
- Audit preparation
- CFO oversight & strategic planning, and controller services
- Assistance with investor presentations and complex equity agreements
- 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
*The advice provided by AAFCPAs’ Tax Consulting Attorneys is in a consulting capacity only and cannot be considered legal advice or a legal opinion and is not a substitute for the advice of legal counsel.