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We’re experts in accounting for cannabis businesses

As you well know, running a cannabis business isn’t easy. Businesses in this industry (including growers, dispensaries and distributors) all face plenty of challenges. There are many complex regulations, requirements and technicalities that often create confusion for business owners. We’re here to help you navigate these ups and downs with confidence, ensuring you adhere to the highest legal standards and remain compliant.

We specialize in helping cannabis businesses grow

At AD Virtual Services, we only work with marijuana business owners. We have a specialized understanding and knowledge of the industry, including all the hurdles you have to jump on a daily basis. We love working with forward thinking and innovative people who are passionate about business, and our unique understanding allows us to make a positive impact in your business. Below we’ve listed a few of the ways we can help.

Navigating legal requirements

We understand that the legislative requirements for your business can be quite overwhelming. We’re here to take that burden off your shoulders. We stay on top of any changes to relevant laws and regulations around marijuana, tax and business in general. We’re also experts at interpreting the implications of each into plain and simple language that you can understand.

Complying with the IRS

The IRS has stringent restrictions on what marijuana businesses can claim as expenses, which is detailed in IRS code section 280E. This code restricts cannabis businesses (cultivators, manufacturers and retailers) to deduct Cost of Goods Sold (COGS). As a result, cannabis businesses are often the target for IRS audits, which can cause even more stress and confusion. It’s imperative for your business that you seek an accountant who is well versed in the tax codes and legal requirements that are relevant to your business. That’s where AD Virtual Services steps in. We specialize in helping the cannabis industry save time, save money and remain compliant.

Cost Accounting

Any cannabis business that is not doing monthly GAAP cost accounting is not allowed to maximize deductions under IRS code 471-11 and 471-1, which is probably costing you 3-5% in cash dollars. So if you want your finances in order and your business to comply with the IRS then you need to engage someone who knows how to do cost accounting. Not everyone can do this, and even some who claim they can don’t do it well.

Right now, most cannabis companies are doing 2 things:

  1. missing the deduction and paying more tax, or
  2. doing an incorrect tax return and will end up paying fines, penalties and more tax.

Almost NONE are doing recurring GAAP cost accounting.

It’s a pivotal part of a business in this industry as incorrect cost allocation can result in serious consequences. With AD Virtual Services you’re working with experts who specialize in your industry. We know how to ensure you keep more of your cash through good tax planning and cost accounting. You can rest easy knowing your tax and accounting is being taken care of, and you’re compliant with State and Federal Regulations.

Banking

Since marijuana is currently still considered illegal at the Federal level, there are many issues with banking, which can result in significant consequences. Aidelis Leon, the founder of AD Virtual Services has over 25 years experience in corporate accounting and has built up a substantial network of partners as a result. We have contacts within our network who can help with banking, so you don’t have to worry.

Talk to us today