A small business needs to keep and gain competitive benefits. Small businesses is having various choices than any other ordinary services such as tax preparation; basic bookkeeping and compliance have been commoditized effectively. To overcome the competition, here come the effective CFO services for you.
Why Need Outsourced CFO Providers?
The leading factor that cannabis firms fail is fairly basic: they run out of cash. Whether it's money to go at it with the courts, at it with the IRS to money their actual task and also their suggestion as well as their service, or money to expand, get even more products, and also up and down incorporated.
Working with an outsourced CFO can help reduce this headache. GreenGrowth Certified public accountants save your cannabis business money and time by substantially minimizing conformity problems concerning tax planning, readily available deductions, and also 280-E reduction.
280-E is a government tax revenue code that marijuana local business owners frequently do not totally understand due to its complex nature, and that's where we come in. 280-E avoids marijuana companies from deducting things that typical services are able to subtract for tax objectives. 280E forbids services that belong to "the trafficking of Arrange I or II substances" to deduct normal business expenses apart from the Price of Product Sold (GEARS). Understanding just how to mitigate 280E is essential to running a smooth cannabis operation.
The CFO role at a cannabis company is the MOST important job. Our industry professional CFOs are finance experts and CPAs that help strategically plan your business. They produce annual and quarterly financial statements, financial modeling, and financial forecasting. They understand the cash flow of your business, so you can focus on other departments within your company that need extra attention, like Human Resources or Marketing, for example.
Accounting and Financial Services for Operating and Management Companies
Accounting and bookkeeping
Journal entry preparation and entry into the general ledger
Reviewing monthly financial statements; valuations of businesses and investments
Cash flow modeling and budgeting
Analyzing and negotiating real estate and equipment leases; setting up journal entries
Taxes-- tax accounting, return preparation, tax filings, estimated taxes, foreign filings (e.g., FATCA).
Designing and implementing internal control and accounting systems.
Tracking and reporting on expense allocations between entities, divisions and third parties.
Waterfall, carry, management, and incentive fee calculation.
Accounting policy-- GAAP (IFRS, if applicable): revenue recognition and reporting, including deposits; invoicing.
Allocations of costs and expenses.
Expense tracking: commissions; professional fees; insurance; goodwill impairment analysis, etc
. Variance analysis-- budget vs. actual.
Cash management, cash flow forecast, and preparation of monthly bank reconciliations.
Accounts receivable management: invoicing, collections, allowance for doubtful accounts, etc
.Accounts payable and bill payment; expense analysis and allocation; preparation of accrual supporting schedules relating to financial statements; vendor onboarding.
Consolidations and reconciliation of due to/due from subsidiaries as well as other intercompany transactions.
Proper presentation of long- and short-term debt; review of interest accruals and proper classification of debt service payments; covenant compliance analysis.
Tracking of loan agreements.
Fixed asset schedules including depreciation.
Equity review: check register, review of meeting minutes; ensure proper reporting of common and preferred stock; handling of options, stock subscriptions, and treasury stock.
Preparation of audit-ready financial statements including applicable footnotes; provide audit support.
Small businesses are having various choices than any other ordinary services such as tax preparation; basic bookkeeping and compliance have been commoditized effectively. 280-E is a federal tax revenue code that cannabis business owners often do not fully comprehend due to its complex nature, and that's where we come in. 280-E prevents cannabis businesses from deducting items that other normal businesses are able to deduct for tax purposes. 280E disallows businesses that are related to "the trafficking of Schedule I or II substances" to deduct ordinary business expenses aside from the Cost of Goods Sold (COGS). Our industry professional CFOs are finance experts and CPAs that help strategically plan your business.
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