As states continue to legalize cannabis for medical and recreational use, growth in the cultivation and dispensary industry will continue to accelerate.
This not only creates many opportunities for entry into a fast growing, complex, and constantly evolving industry, but also poses many challenges and presents a multitude of risks. As cannabis remains a controlled substance at the Federal level, companies that operate or invest in the cultivation and dispensary space are subject to additional risks that are not present in other industries, including risk of asset forfeiture, complex banking regulations, increased cash management risk, and security concerns.
In addition, the cultivation and dispensary industry poses unique tax and accounting issues that require a deep understanding of the industry and its requirements. Cost accounting and inventory tracking are two specific areas where entities need specialized knowledge and robust systems to properly account for costs of goods sold in accordance with IRC Section 280E and account for cannabis inventory in conformity with state regulations.
FGMK CAN ASSIST YOU AND YOUR TEAM WITH:
FGMK’s years of experience working with companies in other growth industries that face similar regulatory and business challenges allow us to help companies in this space succeed. Our professionals have helped thousands of owner-operated companies prosper by offering a range of services and expertise which they have channeled to help clients in the cannabis industry navigate the unique accounting, tax, and business challenges. FGMK’s accounting, tax, and business advisory professionals comprise a team that is ready to help cultivation and dispensary companies adopt compliance, financial, and operating best practices to protect assets, strengthen balance sheets, and drive growth.
The passage and enactment of the Tax Cuts and Jobs Act (the “Act”) in December 2017 provided sweeping changes in virtually all areas of the federal tax code. FGMK provides proactive planning and compliance services in accordance with the provisions of the Act.
FGMK is a leading professional services firm providing assurance, tax and advisory services to privately held businesses, global public companies, entrepreneurs, high-net-worth individuals, and not-for-profit organizations. FGMK is among the largest accounting firms in Chicago and one of the top ranked accounting firms in the United States.
The cultivation and dispensary industry poses unique tax and accounting issues that require a deep understanding of the industry and its requirements.
Sign up for our newsletter to receive the latest in thought leadership, webinars, news, and resources.