How Year-Round Tax Reviews Protect Cannabis Operators
Cannabis operators and business owners must understand the importance of year-round tax reviews. By working alongside experienced cannabis tax accountants and advisors, you’ll stay on track throughout the year and avoid any last-second filing headaches. It may also help you remain compliant and reduce the chances of your taxable income changing. Your finances can also be managed to potentially improve future profits.
Understanding Your Current Fiscal State and the Benefits of Ongoing Tax Reviews
For dispensaries, cultivators, processors, multi-state operators (MSOs), and every other cannabis-related business, keeping your records as accurate as possible is not just helpful at tax time — it helps you plan for maximum revenue growth. Seeing the true state of your cannabis company’s financial information throughout the year makes the year-end tax process easier to handle. It also helps you see your tax burdens coming from a greater distance away, giving you time to prepare most effectively.
This is also a prerequisite for maximizing your quarterly tax savings. While the cannabis industry is tightly controlled at every level of government, cannabis companies are not without methods to reduce their tax burdens in safe and effective ways. Only a CPA working exclusively in the cannabis industry can help you determine which filing methods are most advantageous for your business. Experienced cannabis industry CPAs can also help you develop clearer annual forecasting methods that are essential to grow your cannabis business.
Understanding Who Has to Pay Quarterly Taxes and Knowing the Next Quarterly Tax Deadlines
Keeping quarterly tax deadlines firmly in mind will greatly simplify your accounting and filing processes. Even the most diligent cannabis business owners can be caught off guard if they don’t schedule regular appointments with a CPA who knows their industry inside and out. Quarterly tax deadlines will always approach much faster than expected.
Because cannabis regulations continually change, most often business owners need to act quickly to interpret the changes and make adjustments. Rather, they must continually hone their tax reporting knowledge and be prepared to adjust their filing process on a dime. Cannabis companies particularly get very little leeway when tax agencies level their sights on them. When your books are impeccable, however, there’s no reason to fear.
Bridge West CPAs & Advisors Can Help Your Cannabis Business
Since 2009, Bridge West has helped over 600 cannabis operators. We’ve served as advisors to cannabis-related mergers and acquisitions, and we’ve also helped clients successfully handle over three dozen tax audits at the city, state, and federal levels.
There are numerous benefits of establishing an ongoing relationship with CPAs intimately familiar with your industry. With Bridge West’s dedicated help, cannabis operators can quickly, easily, and effectively:
- Forecast finances
- Minimize tax liability
- Maximize deductions
- Quarterly tax reviews
- Optimize COGS allocations
- Prepare audited financial statements
- Minimize the effects of IRS 280E
- Defend against taxing authorities
While cannabis operators have unwavering limitations on making deductions, there are other compliant ways to mitigate tax liabilities. An industry veteran can show you how to optimize Cost of Goods Sold (COGS) allocations to reduce tax expenses in a safe, compliant, and legal way.
Without exception, it’s essential for all cannabis businesses to maintain oversite of their accounting practices. It will not only afford you greater protection in the event of an audit — it will vastly reduce the chances of being audited in the first place.
We’re Here to Help – Contact Us to Schedule a Confidential Consultation
In an industry that changes by the pen stroke, year-round tax reviews and planning are essential. Bridge West CPAs and Advisors to the cannabis industry has been helping cannabis operators with tax planning since 2009. Our cannabis tax team will thoroughly review your financial position, develop the most effective and beneficial tax strategies, and partner with you to provide year-round guidance to help you attain your goals.
To discuss your cannabis tax accounting and financial-planning needs, schedule a confidential consultation by contacting us today. Calvin Shannon, CPA, CVA, President of Bridge West can be reached at 651-287-6327 and cshannon@bridgewestcpas.com.
