Cannabis Cultivators, Growers, and Manufacturers

Managing your cultivation or manufacturing operation presents numerous complexities, and the added burden of accounting and tax obligations can be overwhelming.  Leafy Accounting Groups are dedicated to organizing your financial matters, allowing you to concentrate on your core competencies.

Distinct challenges demand tailored solutions

Establishing and running grow and manufacturing facilities entails significant investment and operational costs. In the absence of effective accounting and tax strategies, your expenses may escalate, resulting in a tax liability that could be substantially reduced.

Optimizing Deductions Under Section 280E Necessitates Strategic Planning for Cultivation Facilities

The Challenge: The only permissible tax deductions for a cultivation facility pertain to the costs of goods sold. This encompasses a variety of expenses, including seeds, soil, labor, and supplies. Inadequate allocation of expenses to the cost of goods sold may expose a business to potential adjustments during an IRS audit.

How Leafy Accounting Group can assist: We conduct a thorough examination of your business operations and provide recommendations to enhance your tax deductions. Our process begins with a comprehensive tour of your facilities to accurately document the rationale behind the allocation of specific operational costs to your cost of goods sold. This method ensures that your deductions are well-supported from the outset, allowing you to have confidence that your tax returns will withstand scrutiny from the IRS.

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Vertically Integrated Cannabis Enterprises: Managing Multiple Licenses Within a Single Entity

The Challenge: For vertically integrated cannabis enterprises, accurately tracking income and expenses related to different license types is essential. Each license type is governed by specific tax regulations that dictate how expenses can be accounted for and deducted. Additionally, maintaining separate financial records for each license allows for a clearer assessment of each segment’s performance.

How Leafy Accounting Group Can Assist: We help you streamline your financial records by categorizing different licenses and activities into distinct divisions. This organization enables you to easily monitor the operational status of each division at any time, providing valuable insights into your overall business performance.

Find a friendly and knowledgeable cannabis accountant who understands the specific requirements for your business to succeed.

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