A Bookkeepers Guide to Cannabis Accounting

Cannabis companies are highly regulated highly complex organizations. These businesses need not only a higher level accountant and a tax professional, but they also need a bookkeeper to manage all of the day-to-day financial transactions that come with operating a cash-based business.

This webinar is not just for bookkeepers, as it is important for anyone that is on the financial team for a cannabis company to understand the roles and to be clear on everyone’s responsibilities. It is essential that Cannabis businesses have a team of financial experts including bookkeepers, tax preparers, and high-level accountants all working together to ensure all of their financial transactions are captured, recorded and reported properly. Otherwise, cannabis companies can be subject to fines and penalties, which include inaccurate record keeping. (see: Altermeds Case)

In this informative webinar, we provide a high-level overview of some of the most important tasks that a bookkeeper should be...

Continue Reading...

$78k in Accuracy Penalties for Cannabis Company for Poor Accounting and Record Keeping

IRS found that due to poor record-keeping, lack of check registers, no physical inventory counts, incorrect Cost of good sold allocations and much more caused $78k in penalties

 

The Tax Court in Alterman upheld the imposition of a 20% tax penalty on the taxpayer for the underpayment of the tax liability resulting from the deductions taken. Various medical and recreational marijuana practices have been legalized in the majority of the states but the last major hurdle, the Section 280E prohibition,  still keeps marijuana ultimately classified as a Schedule I controlled substance under federal law.

 

Attorney Henry Wykowski explains, “Nevertheless, it’s a disappointing case and illustrative of the difficulties the industry faces with many – but not all – of the judges in tax court.”

 

What does this mean? If a business is operating without keeping good records, the IRS can deny deductions for business expenses.  Due to the...

Continue Reading...
Close

50% Complete

Two Step

Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.