AD Virtual Services has the accounting expertise you need to build a secure and successful cannabis business.
The opportunities created by the cannabis industry are vast and exciting – but it’s also a new market sector that requires total compliance. The complex laws regulating cannabis taxes, accounting and banking can create confusion for even the most experienced business owner, adding, even more, hurdles to this rich yet uncharted terrain.
With state and federal requirements constantly shifting, it’s often hard to feel confident that you’re making the best decisions for your unique legal and financial needs. AD Virtual Services takes these concerns off your plate, allowing you to spend more of your time and resources on the exciting work of developing your business.
Over 25 years of corporate accounting experience, combined with specialized training and nearly a decade of practice in the cannabis sector, make us a trusted guide for growers, dispensaries and distributors across the country. Our cannabis accounting services include:
Using a lean virtual model that keeps costs down and momentum up, we offer cannabis businesses and entrepreneurs with personalized accounting support in the following areas:
The fact that cannabis businesses are often the target for IRS audits is a common source of stress in the cannabis industry. To reduce the risk of tax-related problems, it’s critical to choose an accountant who’s well versed in the tax codes and legal requirements that apply to your type of company.
AD Virtual Services will help you understand and avoid the common pitfalls that can lead to IRS audits. For example, the IRS’s stringent regulations on what marijuana businesses can claim as expenses, detailed in IRS code section 280E, limits your ability to deduct Cost of Goods Sold (COGS). Applying our mastery of these laws to your specific needs, we’ll make sure no detail is left unexamined in your deductions and other tax matters.
Cannabis businesses who aren’t conducting GAAP cost accounting on a regular basis are paying as much as 3% to 5% more they need to in taxes—and worse, also risk fines and penalties by filing incorrect tax returns. Under IRS code 471-11 and 471-1, only cannabis businesses who do monthly cost accounting are allowed to maximize deductions.
Few firms have the knowledge required to navigate this highly technical area of cannabis tax law, and AD Virtual Services is proud to be one of them. Our cost accounting services will help you keep more of your cash while remaining in full compliance with state and federal regulations.
Different states have different legal requirements when it comes to tax prep and filing, and it can get quite complex depending on your market segment. Whether you’re a manufacturer, distributor, retailer or cultivator, we’ve got you covered with the best-case preparation and on-time filing, every time.
Get in touch with AD Virtual Services to learn more about how we can assist you with your cannabis accounting and compliance needs.