CannAccounting in a Box™
CannAccounting in a Box™(CAiaB) is a turnkey 280E-compliant accounting solution for the start-up plant-touching business and new licensees. Making sure you are 280E compliant before you generate your first sale. Once implemented it will remove the anxiety and worry plant touching business owners face regarding 280E compliance.
The solution is based on the areas the IRS will focus its audits.
- Revenue Recognition
- Allowable Expenses
CAiaB is an accounting solution that will be the foundation of your accounting operations. The solution we have created will address each of the audit areas to make sure your accounting operations and processes are audit ready. This solution will also make sure that each plant touching business does not incur accuracy penalties for failing to comply with 280E.
What is included in CannAccounting in a Box™
- Cannabis Chart of Accounts - The Chart of accounts is the backbone of your accounting and reporting system and having a cannabis chart of accounts will be very helpful in accurately capturing and reporting transactions.
- Chart of Accounts created and modified for your specific business type of cannabis business
- Revenue Recognition - The IRS will apply specific audit procedures to make sure you have captured ALL revenue earned with more scrutiny placed on unbanked businesses with cash transactions. You will receive a Cash Management System that will include:
- Standard Operating Procedures (SOPs) that will document how you recognize revenue and/or account for cash receipts in your business.
- Standard Operating Procedures (SOPs) that will document how you recognize revenue and/or account for cash receipts in your business.
- Inventory/Cost Accounting - Implementing an Inventory Management System will make sure you have systems in place to accurately account for and capture inventory transactions.
- SOPs that capture the inventory/cost accounting procedures for your cannabis business type (dispensary, grow, manufacturer, or vertically integrated)
- SOPs that capture the inventory/cost accounting procedures for your cannabis business type (dispensary, grow, manufacturer, or vertically integrated)
- Expenses/Allocation of Cost of Goods Sold (COGs) - The IRS will review transactions and allocation methodology to make sure you have accurately captured and allocated allowable expenses required by IRC 471.
- SOPs that provide detail on how your cannabis business applies IRC 471 using accurate cost allocation (to minimize tax liability).
- SOPs that provide detail on how your cannabis business applies IRC 471 using accurate cost allocation (to minimize tax liability).
- Document Retention System - A filing system for gathering and storing documents to substantiate transactions.
Have Questions? Let's Chat!
Want to make sure CannAccounting in a Box™ is the right choice for your new business.
We are happy to meet with you to discuss the best accounting solution designed specifically for new plant touching businesses.