280E Compliance Analysis Report™
The 280E Compliance Analysis Report™ is one of three proprietary accounting solutions (280E Audit Readiness Plan™ and CannAccounting in a Box™) we created specifically for plant-touching businesses that have been open for over a year. This analysis will help us diagnose how well you are performing cannabis accounting by reviewing your most recent financial statements and creating a scorecard with the results of our diagnosis. It will also help us determine if you have implemented accounting best practices that specifically focus on the areas that the IRS will audit. Those areas are gross receipts (revenue recognition) and allowable expenses as they relate to cost of goods sold.
What Do You Get with the 280E Compliance Analysis Report™
280E Compliance Assessment Scorecard™ & 280E Compliance Analysis Report™
Our team will conduct a detailed analysis of the current state of your cannabis accounting operations. The analysis will determine how compliant your accounting operations are to IRC 280E. The analysis will also determine how closely your accounting best practices take into account the two audit areas the IRS will audit (listed below).
- Gross Receipts – Revenue recognition for Banked or Unbanked
- Expenses/Cost of Goods Sold (COGS)
After the assessment, you will receive a 280E Compliance Assessment Scorecard™ that will show the areas of improvement or significant deficiencies related to 280E compliance. You will also receive a 280E Compliance Analysis Report™. The report will have recommendations for your accounting operations that you can use to address any deficiencies identified and implement recommended accounting best practices.
Have Questions? Let’s Chat!
Want to make sure your accounting operations is IRC 280E compliant?
We are happy to meet with you to discuss any questions you may have and how it will help your business become audit ready.