With conflicting legalities between State, Federal and local governments attempting to eradicate safe access, the business climate in which collectives and cooperatives operate, inherently compromises public perception of their legitimacy. Many cannabis businesses and accountants don’t have the right knowledge and tools needed to effectively be able to file taxes without the worry of an audit.
In an effort to provide the most up to date and cutting edge I502 accounting solutions for the Washington cannabis industry, Washington Cannabis Institute has formed strategic alliances with accountants and bookkeepers to help the cannabis dispensary operators comply with all taxing regulations.
Washington Liquor Control Board has made it very clear that detailed bookkeeping and accounting records must be kept on site of any I502 related cannabis business. Here are some of the services we offer:
Accounting and Bookkeeping:
- Small Business Accounting
- QuickBooks Services
- Part-Time CFO Services
- Cash Flow Management
- Bank Financing
- Business Valuation
- Strategic Business Planning
- Succession Planning
- Bookkeeping for cannabis business
- Call (206) 659-6981 for a free consultation.
MISCONCEPTION 1: Marijuana dispensaries are not federally approved, so they are not subject to income taxes.
OUR EXPERT OPINION: Although not federally approved, medical marijuana dispensaries are not eligible for IRS tax exemption. For this reason, they are subject to income tax filing and payment. It is safe to assume that all business income will be subject to taxation, unless stated otherwise.
MISCONCEPTION 2: Marijuana businesses are filled under 501(c) nonprofit tax code.
OUR EXPERT OPINION: Not even close. This is not your standard non-profit business, this is medical marijuana, illegal under federal law.
MISCONCEPTION 3: It’s best not to keep operating records in this industry.
OUR EXPERT OPINION: Generally speaking, if you do not have proof of purchase receipts and payments your expenses can be disallowed, resulting in taxes due. For this reason, keep all your records. Hang on to your purchase receipts, even if you have credit card statements to prove the purchase. Hang on to your receipts especially if you paid by cash. Bookkeeping is the ideal way to keep accurate records in the industry. We can help you each step of the way, from setting up your books to preparing and presenting you with the proper financial statements.
MISCONCEPTION 4: Medical marijuana dispensaries are cash based businesses. How is the IRS going to find out what I made, if I don’t claim my income?
OUR EXPERT OPINION: If you don’t claim your income, but incur traceable transactions, it may raise a “red flag” with the IRS. Traceable transactions include, but are not limited to: purchasing real estate, car, business, paying rent, claiming business deductions and more.
MISCONCEPTION 5: Collecting donations in return for marijuana.
Definition: do·na·tion [doh-ney-shuhn] noun
Call Us (206) 659-6981 to get started.
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