There is no denying that the cannabis industry has grown at a rapid pace. It is predicted that by 2022, legal marijuana sales are projected to reach $22 billion. Due to regulations being in constant flux, cannabis businesses require an accounting firm that remains current on the industry’s pulse. AB Financial Group is a top accounting firm for cannabis industry businesses in Colorado.
The AB Financial team has a signature blend of service and expertise to meet the unique needs of the industry. With a sophisticated suite of services such as targeted accounting, financial planning, and bookkeeping for dispensaries, AB Financial ensures accounting compliance, and can help take your company to the next level.
AB Financial Group has guided cannabis businesses in Vail, Summit County, and Denver, CO through a complex regulatory environment. From helping businesses minimize the effects of IRS 280E, to preparing audited financial statements, our comprehensive accounting services address the industry’s most unique and ever-evolving financial challenges.
Bookkeeping for Dispensaries
The cannabis industry is one of the most tightly regulated industries in the U.S.; therefore, businesses must be ready for an audit at any moment. A noncompliant business can face years of litigation, significant legal fees, and back taxes. Having a reliable accounting and bookkeeping team is key to avoiding a business ending consequence.
Companies need a cannabis accountant that is trained in keeping sound books and records. Every number recorded in the books should be properly documented and supported. Dialed-in books not only reduce risk, but can result in cost savings. AB Financial Group is highly experienced at working with businesses in the cannabis industry. AB Financial offers bookkeeping for dispensaries throughout Colorado.
Cannabis Tax Regulations
With all the federal and state regulations to navigate, it is no surprise that tax regulation for cannabis is very complex. Section 280E is one portion in the tax code that is very important for cannabis businesses. To account for 280E expenses properly, a cannabis bookkeeper must understand:
- Cost accounting
- Accrual accounting
- Generally accepted accounting principles (GAAP)
- Absorption accounting
Cannabis business owners will find it hard to find a generalist accountant who understands a lot of the listed concepts. Specifically, the understanding of GAAP and cost-based accounting is not required for most small- to medium-sized businesses, so it requires an extra skill set beyond everyday small business accounting. AB Financial Group is very familiar with bookkeeping for cannabis businesses. The AB Financial team maintains meticulous records to ensure you are able to maintain your cannabis license, banking, and funding. Take the stress out of the process and leave your cannabis accounting to the experts at AB Financial Group.
If you are a cannabis company looking for a top accounting firm for cannabis industry businesses in Colorado, look no further than AB Financial Group. AB Financial has been working with cannabis businesses in Vail, Summit County, and Denver, CO for several years. Contact the experts today: (970) 444-5586.