IRS audit stamp and accounting documents for a cannabis business

At American Cannabis Company, we offer robust accounting and bookkeeping services that will get your books in order so that you are fully prepared when it is time to file.

Cannabis Industry Presents Unique Tax Challenges

It is crucial that your company’s books are fully compliant as it relates to Section 280E tax codes. Unfortunately, many accountants and bookkeepers that do not possess the extensive knowledge and experience in the cannabis industry and consequently, may not properly assess how these tax codes will impact your returns.

One of the primary ways Section 280E impacts your taxes involves the deductions you are allowed to claim. Unfortunately, most of your business expenses are not tax deductible based on the terms of Section 280E; however, certain exceptions to this rule do exist. The most notable is that you are allowed to claim deductions for costs of goods sold (COGS). Unless your bookkeeper is familiar with the specific ways Section 280E will ultimately impact your tax liabilities, you may end up severely overpaying, or even worse, underpaying which may open you up to penalties during an audit.

Benefits of Working with a Third-Party Bookkeeper

While it may be tempting to address this important task with an in-house bookkeeper, there are several downsides to this approach:

  • You risk operating for extended periods of time without your books being properly managed if your bookkeeper quits, develops a serious illness, or requires a leave of absence for any reason
  • There will be a period of “growing pains” while you get a new bookkeeper familiar with your processes after being hired
  • Tax laws, particularly those related to the cannabis industry, are constantly evolving and your in-house bookkeeper will need to devote a significant amount of time to continuing education courses to ensure you remain current on the changes in tax regulations

By working with a third-party bookkeeper, you can sidestep these issues, which can all be potentially devastating to your business. You will have the continuity necessary to stay on top of your bookkeeping. In addition, when you choose a third-party bookkeeper with extensive experience in the cannabis industry, you will have peace of mind that all changes to tax regulations will be accounted for.

Accounting and Bookkeeping Services Focused on the Needs of Cannabis Businesses

At American Cannabis Company (ACC), we can help to ensure that your accounting and bookkeeping needs are handled properly. We provide comprehensive accounting and bookkeeping services tailored to the unique needs of a cannabis business. This industry-specific approach is crucial to your ability to grow your business and ensure ongoing success.

You will experience a variety of benefits when you work with ACC for your accounting and bookkeeping needs:

  • Trained accounting and bookkeeping professionals who also have extensive knowledge of the cannabis industry
  • Pristine bookkeeping that provides you greater control over your financial data
  • Assistance with preparing and filing tax returns
    • Knowledge of Section 280E and how it impacts your tax deductions
  • Accurate monthly statements
  • Highly developed systems to keep your business’ finances organized
  • Tracking of critical financial KPIs

If you filed for an extension with the IRS, there’s still time for us to make sure your tax information is in order. Find out how American Cannabis Company can help with your accounting and bookkeeping needs.

Contact us to schedule a consultation.