The cannabis medical and political landscapes have changed immensely over the past several years. With the legalization of cannabis on the rise throughout the U.S., the cannabis industry has emerged into a viable business opportunity for individuals and investors as it’s slated to hit $200 billion by 2030. Many challenges exist for cannabis growers, distributors and retailers as medical and recreational use becomes more mainstream as governments are enacting complex legislative requirements and protocols.
The pervasive intricacies of the industry result in a challenging accounting and taxation environment. Since the majority of transactions are cash-based or processed through non-traditional banks, internal controls and bookkeeping for cannabis and hemp companies can be difficult to manage and provide accurate financial reporting. Cannabis growers, distributors and retailers are tasked with navigating conflicting federal and state guidelines. Additionally, the judicial history of Internal Revenue Code Section 280E and its conflict with modern tax principles, make calculation and implementation of an acceptable tax reporting method difficult.
Serving All Areas of the Cannabis, Hemp and CBD Industry
How We Can Help
In developing and starting your cannabis business and managing cash flow, you’ll need to implement a strong infrastructure and compliance program to thrive in this developing market. Withum’s expertise in the distribution, agricultural/cultivation and retail sectors gives us a unique perspective when advising established and emerging companies in both plant and non-plant touching segments of the cannabis industry, including hemp and CBD. Regardless of the size, stage and plans of your company, it is crucial to have a trusted business advisor well suited to serve your ongoing needs.
Services for the Cannabis Industry
Cannabis Attest and Tax Compliance Services
Cannabis Advisory Services