As states continue to introduce and expand their legalization of cannabis programs, the industry has emerged into segregated markets providing very different opportunities and risks driven by state regulations which can vary drastically.
Cannabis cultivators, manufacturers, transporters and retailers continue to be challenged by effective tax rates which are higher than in any other industry given the federal illegal nature of the activity of trafficking in a Schedule I controlled substance. The pervasive intricacies of the industry result in a challenging cannabis accounting and taxation environment. In fact, lack of adequate planning will affect your cash flow.
How We Can Help
Our rich expertise in the cannabis industry spans over ten years of providing the services referenced herein to both plant and non-plant touching segments of cannabis business enterprises.
We are trusted business advisors with more than forty-five team members nationwide who are trained to specifically service firms in the cannabis industry. We are well-suited to serve your ongoing needs regardless of your company’s size, development stage and plans.
Services for the Cannabis Industry
Cannabis Audit and Assurance Services
- Financial Statement Audit, Review and Compilation Services
- Assessment of Internal Controls and Compliance Reporting
- Cash Flow Projection Modeling and Analysis
Cannabis Tax Services
- IRC § 280E Planning and Implementation
- Federal and State Income Tax Reporting
- Excise and Sales Tax Compliance - Municipal/State
- Cash Reporting Under IRS Guidelines
- Choice of Entity and Operational Structure
- Private Client Services
Cannabis Advisory Services
- Optimization of Inventory Costing Methods
- Outsourced Accounting and Reporting Solutions
- Transaction Advisory Services
- Technology and Accounting Systems Implementation
- Cybersecurity Assessment Testing
- Forensic and Valuation Services
- Transfer Pricing
- Cost Segregation Studies
- Investor Relations and Board Advisory Services
- Investor and SPAC Introductions
- Wealth Management
For more information or to discuss your business needs, contact Withum’s Cannabis Sector Services Team.
The team at Withum has been more than just our "accountants" from the start. They have been true business partners, valuable resources, and trusted advisors since our humble beginnings. Their skill set and knowledge when it comes to the cannabis industry and its specific regulations and tax complexities is unique and unmatched by any of the other top CPA firms. The services provided by their team are vast and they have stepped up throughout the years to provide dependable results. I would strongly recommend this team and their expertise to any business; their partnership has proven to be imperative to ours throughout the years.
Thomas Davis, CFO | INSA
When I took a financial controller position at a cannabis company, without prior cannabis experience, I knew I needed an experienced team that could help me navigate the nuanced and ever-changing landscape of cannabis accounting. Withum has exceeded expectations from the start. They are knowledgeable, personable and there whenever you need them. I look forward to our interactions and never feel unsupported, which has made a new job in a new industry a seamless transition I did not expect.
Katie Bell, Financial Controller | Root & Bloom
In an evolving industry with countless challenges, Withum has helped work with us to ensure accurate financials and support us through a complicated tax environment. There are a number of individuals I could call out by name, but I consider Brian Silva and Paul Myers two valuable resources that I could call on in a heartbeat to answer any question I have.
Michael Bates, CFO | Temescal Wellness
Withum's expertise in accounting and tax services has been invaluable to our business, helping us navigate complex financial and tax matters with ease. The team is highly knowledgeable and experienced and they always conduct their work with the utmost professionalism and attention to detail. Their team is always willing to go the extra mile to ensure our company's success.
Tim Caraboolad, CEO | Native Sun Cannabis
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