Steer Clear of Financial Pitfalls: Four Key Mistakes Every Cannabis Business Should Avoid
Ensuring the financial success of your cannabis business demands a strategic approach to accounting. Yet, too many businesses are inadvertently jeopardizing profits and increasing risks due to common mistakes in their financial strategies. Here, we shed light on four critical errors that can significantly impact the financial health and stability of your operation.
Mistake #1: Overstating Revenue
Inflated Figures: Including excise and sales tax in revenue numbers.
Taxing Troubles: Incorrect excise tax filings due to a lack of product distinction.
Mistake #2: Cost of Goods Allocation
Maximize Efficiency: Failing to maximize COGS under IRC section 471.
Expense Inflation: Overinflating COGS by accounting for wholesale purchases as expenses.
Mistake #3: Understating Expenses
Cash Oversight: Failing to account for expenses paid in cash.
Accrual Awareness: Neglecting to properly accrue for expenses incurred but not yet paid.
Mistake #4: Risk of Losing License
License Peril: Failure to match METRC to Inventory could mean losing your license.
Critical Inventory: Ending Inventory is a vital aspect of cannabis accounting for profitability and compliance.
Elevate Your Cannabis Business Beyond Bookkeeping with Our Comprehensive Financial Closeout Package
Achieving success in the cannabis industry requires a holistic financial approach beyond mere monthly bookkeeping. Our Financial Closeout Package is meticulously crafted to tackle not only these challenges but also various other intricacies unique to the industry. It delivers a strategic financial solution designed to keep your operations compliant, minimize risks, and maximize profits.
What’s Included in Our Package?
Monthly Financial Statements
Performance Insights: How did your company perform this month?
Profitability Check: Are revenues too low or expenses too high?
Expert Review: Regular business review with a cannabis CPA expert.
Cost of Goods Allocation
Maximizing Deductions: Are you maximizing COGS and reducing your taxable income?
Detailed Documentation: Receive documentation on how COGS is calculated by our expert accounting team every month.
Cash on Hand Reconciliation
Financial Oversight: Where did all your money go?
Control Mechanism: Monthly reconciliation to Cash on Hand ensures you have control in place to monitor your Cash account.
Match Inventory in METRC, POS, and Financials
Alignment Assurance: Crucial for accuracy, ensuring inventory and COGS values align across METRC, POS, and financial statements.
Experience security and success with a comprehensive package that goes beyond routine bookkeeping, providing you with the financial clarity and strategic insights needed for sustained success in the dynamic cannabis landscape. The Greenbooks CPA Financial Closeout Package is all part of our Basic Cannabis CPA plan, starting at only $1,250 per month. Terms and conditions apply.
Visit our Basic Cannabis CPA Plan page to learn more or schedule a free consultation today!