Core Cannabis Accounting Services
SOX & Internal Controls
Preparing for the Public Markets
Many cannabis companies go public while still in the “emerging growth company” stage, which means an initial, lighter-touch assessment of internal controls under SOX 404(a). But cannabis valuations can climb fast and once your market cap crosses certain thresholds, both your management team and your external auditor are required to assess all internal controls under the stricter SOX 404(b) standard.
We know you have a business to run, not a compliance project to manage full-time. That’s why our approach is built to be cost-efficient and turnkey from day one. We help you build a SOX program that scales with you practical, risk-based controls that satisfy the standard today and hold up as your company grows.
Tax Credits & Advisory Incentives
Making the Most of a Limited Deduction Landscape
Section 280E puts a hard cap on the federal deductions and credits available to plant-touching cannabis businesses, but that doesn’t mean there’s no room to plan. Depending on your state tax rules and how your entity is structured, there are often credits and incentives worth pursuing and many cannabis operators are leaving money on the table simply because these opportunities go unexamined.
Our specialists help clients identify overlooked credits and put smarter accounting methods in place, including:
- Cost Segregation Plus Studies
- Employee Retention Credits
- Energy-Efficient Commercial Buildings §179D
- Fixed Asset Review Analysis / Tangible Property Regulations (TPR)
- Meals & Entertainment Studies
- Research & Development Credit
Digital & Business Process Services
Modernizing How Your Business Runs
Cannabis operators are often managing complex, multi-entity structures across multiple jurisdictions and doing it with finance systems that weren’t built for the industry’s unique compliance and reporting demands. We help clients streamline back-office operations, automate manual processes, and put the right technology and reporting infrastructure in place so your finance function can keep pace with your growth instead of holding it back.
Business Valuation
Getting the Multiple Right
Cannabis deal activity continues to be strong, and more transactions are on the horizon. Unlike most industries, where valuation is anchored to a multiple of EBITDA, cannabis companies are frequently valued on a multiple of revenue and that multiple varies significantly depending on state and vertical. While there’s growing momentum toward EBITDA-based valuation as the industry matures, revenue and top-line growth remain the primary lens through which most cannabis businesses are valued today.
Our team supports both U.S. and Canadian clients navigating IFRS and U.S. GAAP reporting requirements. While a plant-touching valuation shares much in common with valuing any other business, it also demands close attention to industry-specific factors cost of capital, the impact of Section 280E, a fast-shifting regulatory backdrop, and the added uncertainty that comes with projecting cash flows in this space.
Additional Cannabis Accounting, Tax & Advisory Services
We offer a full range of accounting, financial, and consulting services designed to give cannabis and hemp businesses the insight they need to grow with confidence.
Advisory
- Audit Readiness & Execution
- Analytics & Automation
- Cybersecurity
- Deal Advisory
- Digital Transformation
- Entrepreneurial Services
- IFRS & U.S. GAAP Conversion
- IPO Readiness — U.S. and Canada
- Revenue Recognition
- Risk Advisory
- SOC Reporting Services
- Valuation
Tax
- Corporate Tax Planning & Structuring
- Energy Tax Credits & Incentives
- International Tax
- IRS and State Tax Audit Support
- Outsourced Accounting
- Section 280E Compliance
- State & Local Tax Compliance
- State Credits & Incentives