Cannabis Audit Is Complex
PK Solves Complex Problems
Unlike most CPA firms that only focus on tax issues, PriceKubecka also provides audit services to our cannabis clients. As a full service CPA firm, this allows us to provide invaluable insight into solving the unique tax and audit challenges that our cannabis growers, producers, and retailers face.
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Auditing and Reporting Challenges
Audits for cannabis businesses using International Financial Reporting Standards (IFRS) requires biological assets to be recorded at Fair Market Value, while audits using American Generally Accepting Accounting Principles (GAAP) requires biological assets to be recorded at the lower of cost or market. PriceKubecka understands both of these methods and knows how to audit your unique vertical and will keep you in compliance.
Similar to growers, GAAP reporting requires producers to use Uniform Capitalization Rules (UNICAP) for recording cost of goods sold. A proper set of audited financial statements report all components of inventory: Raw Materials, Work in Process, and Finished Goods. PriceKubecka knows how to audit the intricacies of cannabis inventory and help you report it accordingly.
For retailers, there are not many expenses that would be considered inventory or cost of goods sold and therefore many businesses have a separate and "legal" service/product to offset the IRC 280E limitation. With the separation of services, a quality set of audited financial statements can help substantiate the revenue per service reported to the IRS. PriceKubecka will sit down with you and get a thorough understanding of the different revenue segments to verify that revenue recognition is being properly recorded.
It's not uncommon for audited financial statements to improve your chances of having your business license application approved as it portrays a more sophisticated business operation. In addition, states like New Mexico and Minnesota require annual audited financial statements in order to maintain a business license. There also some regulators, like LARA in Michigan, that require cannabis license holders to provide MMFLA CPA attestation and review reporting. Let PriceKubecka support you in adhering to the various reporting requirements mandated by the states.
Many investors and private lenders are gravitating towards the cannabis industry. For them, your business is new and exciting, but also risky. Keep stakeholders happy by providing a quality set of audited financial statements as proof that their investment is being managed accordingly. PriceKubecka can help you by performing the highest level of assurance: audits. However, we can also provide reviewed and compiled financial statements. Whatever type of financial statements you need, we can deliver a quality report on time.
Financial Statement Types
The audit and assurance requirements put onto cannabis businesses by state regulators, investors, and lenders will vary. At PriceKubecka, we can provide audit, reviews, compilations, and other attest procedures to comply with any financial reporting needs.
Financial Statement Audits
Reviews and Compilations
Other Attest Services
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Addison TX 75001