From 280E to GAAP to IRS Code 471, there's a lot of information you want to be sure your cannabis accountant is aware of. If not, you're running the risk of overpaying your taxes and could potentially be subject to additional taxes if your cannabis business is audited by the IRS. Use the questions below to gauge their knowledge and determine if they have your best interests in mind.
Do you know how to maximize deductions under the constraints of 280E?
Are we using GAAP/cost accounting to prepare our monthly/quarterly financials?
Are we utilizing IRS Code Section 471 to maximize our Cost of Goods Sold deduction?
Are my financial statements and permanent documents stored in a perpetual data room and updated monthly/quarterly in the event those records are requested by an auditor, banker, or investor?
Do I have a reliable 90 day rolling cash forecast that is updated at least monthly?
Are my financials ready by the 15th of each month?