280E Tax Reporting & Management Reporting Complexity

Apr 6th 4:03PM

Cannabis accounting & financial reporting is challenging in the complex world of IRS 280E. Complying with the regulations, maintaining priority focus on timely/compliant tax reporting & filing, while ensuring pass-thru entity ownership understands that THEY foot the federal tax bill for their cannabis companies contributes to the typical financial statement/transparency emphasis.

Yet, 3rd party financial statement external reporting usually demands financial statements in conformity with generally accepted accounting principles (GAAP). And, GAAP formatted financials & cost of goods sold calculations ignore cost behavior in terms of variable/fixed/mixed elements, as well as activity driver emphasis that facilitates effective forward-looking decision making. Running the business, making sharp decisions about the future, and securing 3rd party funding means 280E/Tax formatted financial reporting on a cash basis won't cut it in terms of providing relevant management insights. The audience matters, and tax, financial & management reporting all have different audiences.Solution is to ensure those providing financial advisory, accounting & reporting services have walked in your shoes and understand & tailor their contributions to drive cannabis enterprise value.








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