Cannabis
As States continue to introduce and expand their legalization of cannabis programs, the industry has emerged into segregated markets – offering diverse opportunities and risks driven by varying state regulations.
Cannabis cultivators, manufacturers, and retailers face unique challenges, including effective tax rates that are higher than any other industry. Cannabis remains a Schedule I controlled substance, which creates a complex and demanding environment for cannabis accounting. As the Drug Enforcement Administration (DEA) moves forward with rescheduling cannabis, our professionals are ready to put our clients in a position of strength, regardless of the outcome.
Who We Help
Serving Clients in the Cannabis, Hemp and CBD Areas:
- Cultivation / Manufacturing Processors
- Dispensaries
- Hedge Funds / Private Equity / Banking
- Multi-State Operators (MSOs)
- Ancillary Non-Plant Touching
How We Can Help
At Withum, our rich expertise in cannabis accounting spans over a decade. We are well-versed in the most pressing issues affecting the industry. This includes hemp medical marijuana, THC and CBD. Our cannabis advisors understand the industry’s pervasive intricacies and will ensure your financial strategies are robust and compliant. Adequate planning is crucial to maintaining a healthy cash flow and avoiding potential pitfalls.
We are trusted cannabis business consultants with team members nationwide who are explicitly trained to service firms in the cannabis sector. Whether you are a startup or a well-established enterprise, our cannabis accountants are well-suited to meet your ongoing needs, regardless of your company’s size, development stage or plans. Our audit procedures comply with all legal, regulatory and accounting standards affecting the industry. We strive to help our clients achieve their desired goals.
Our cannabis team is dedicated to helping businesses like yours navigate the industry’s complexities, optimize their financial performance, and achieve long-term success. Partner with Withum for expert guidance and support.
Services for the Cannabis Industry
Cannabis Audit and Assurance Services
- Assessment of Internal Controls and Compliance Reporting
- Cash Flow Projection Modeling and Analysis
- Financial Statement Audit, Review and Compilation Services
Cannabis Tax Services
- Cash Reporting Under IRS Guidelines
- Choice of Entity and Operational Structure
- Cost Segregation Studies
- Excise and Sales Tax Compliance - Municipal/State
- Federal and State Income Tax Planning, Projections and Tax Preparation
- IRC § 280E Planning and Implementation
- Tax Controversy
Cannabis Advisory Services
- Compliance Consulting
- Cybersecurity Assessment and Testing
- ESOP Planning
- Forensic and Valuation Services
- Inventory Valuation and Cost Accounting
- Investor and SPAC Introductions
- Outsourced Accounting and Reporting Solutions
- Technology and ERP Systems Implementation
- Transaction Advisory Services
- Transfer Pricing
- Wealth Management
Contact Us
For more information, please contact a member of our team.
Client Testimonials
The team at Withum has been more than just our "accountants" from the start. They have been true business partners, valuable resources, and trusted advisors since our humble beginnings. Their skill set and knowledge when it comes to the cannabis industry and its specific regulations and tax complexities is unique and unmatched by any of the other top CPA firms. The services provided by their team are vast and they have stepped up throughout the years to provide dependable results. I would strongly recommend this team and their expertise to any business; their partnership has proven to be imperative to ours throughout the years.
Thomas Davis, CFO | INSA
When I took a financial controller position at a cannabis company, without prior cannabis experience, I knew I needed an experienced team that could help me navigate the nuanced and ever-changing landscape of cannabis accounting. Withum has exceeded expectations from the start. They are knowledgeable, personable and there whenever you need them. I look forward to our interactions and never feel unsupported, which has made a new job in a new industry a seamless transition I did not expect.
Katie Bell, Financial Controller | Root & Bloom
In an evolving industry with countless challenges, Withum has helped work with us to ensure accurate financials and support us through a complicated tax environment. There are a number of individuals I could call out by name, but I consider Brian Silva and Paul Myers two valuable resources that I could call on in a heartbeat to answer any question I have.
Michael Bates, CFO | Temescal Wellness
Withum's expertise in accounting and tax services has been invaluable to our business, helping us navigate complex financial and tax matters with ease. The team is highly knowledgeable and experienced and they always conduct their work with the utmost professionalism and attention to detail. Their team is always willing to go the extra mile to ensure our company's success.
Tim Caraboolad, CEO | Native Sun Cannabis
Leadership
Insights
Another Disappointment for the Cannabis Industry as Rescheduling Delayed
The cannabis industry has waited with bated breath for the December 2nd hearing, where many anticipated that final testimony in favor of rescheduling would be heard by the Drug Enforcement […]
Navigating the DEA’s Cannabis Rescheduling: What Happens Next?
July 22, 2024, marked the end of the Drug Enforcement Administration’s (DEA public comment period regarding the proposed rescheduling of cannabis from a Schedule I to a Schedule III substance […]
What You Need to Know About the DEA’s Plan to Reschedule Cannabis – A Focus on Taxation
In a landmark move, the Drug Enforcement Administration (DEA) announced on April 30, 2024, that it will initiate the process of rescheduling cannabis from Schedule I to Schedule III under […]