Cannabis Industry Accounting

Our mission is to holistically serve your cannabis business. Not just taxes. Not just bookkeeping. Not just fractional CFO. We know your business will be best supported when these service areas come together cohesively.

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Unique Challenges Require Unique Solutions

Businesses in the cannabis industry start out at a disadvantage. Whether you're fighting against tax laws, lack of transparency, or the "green tax," there are many more obstacles for a cannabis business than your “average” business. Dark Horse Cannabis CPAs are industry experts in accounting and tax. We'll help remove those obstacles and gain advantages.

Maximizing deductions under 280E by accurately tracking employee hours

THE CHALLENGE

For organizations whose employees perform multiple tasks in the business, being able to accurately track and allocate the employee’s time to inventoriable activities allows the business to capture the employees’ costs in inventory, therefore allowing a larger deduction for calculating cost of goods sold when preparing the company’s tax returns.

HOW DARK HORSE CAN HELP

Dark Horse CPAs will work with you and your management team to ensure accurate tracking of employees’ working hours associated with inventory activities. We will help develop SOPs for capturing employee time accurately and will recommend software-based solutions to reduce the administrative burden.

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Would you feel confident going into an IRS audit today? What kind of support do you have for your cost of goods sold deductions?

THE CHALLENGE

The U.S. Treasury Inspector General for Tax Administration (TIGTA) issued a report in 2020 encouraging the IRS to increase its efforts in auditing cannabis businesses, suggesting the IRS could collect significantly more revenue from auditing a cannabis business vs. another type of business. The reason TIGTA made this recommendation is that they realized many cannabis businesses 1) are not applying 280E and IRS section 471 correctly, and 2) when they are applied correctly, businesses have insufficient support for their deduction positions.

HOW DARK HORSE CAN HELP

At Dark Horse CPAs, we ensure your tax positions are defensible. We maintain digital copies, receipts and invoices, so they are readily accessible should the IRS come calling. And every position we take on your tax returns is rooted in IRS laws and regulations. So, you can sleep easily at night knowing when Big Brother comes calling, your returns are rock solid.

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Vertically integrated cannabis businesses may hold multiple licenses under the same entity

THE CHALLENGE

It’s imperative that income and expenses under different license types are properly accounted for. Different license types have different tax rules for how to account for and deduct expenses for tax purposes. Additionally, maintaining separate financials for separate licenses will allow you to see how each area of your business is performing.

HOW DARK HORSE CAN HELP

We separate different licenses and activities by divisions in your financials so you can easily identify how the different divisions are operating at any time.

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Kerri L.
In the couple of months that Sarah and I have been working together, she's been very generous with her time, knowledge, and support. She's both excited by and patient with my questions, as I really like to understand why things are what they are. She's also willing to learn with me, which is always awesome. Life is just so much more wonderful when professional services are conducted by feeling humans.

Alex M.
It's tax season, and this is the time of year to really appreciate our accounting professionals. I know I can say earnestly that when I contracted with Riana Linsky through Dark Horse, I was delighted, and my gratitude has only grown since. She was a pro at onboarding our messy books after I realized that I was totally in over my head. She has spent HOURS on the phone with QuickBooks, corrected state filings that I incorrectly submitted, and most recently helped adjust her reports to a completely different tax-year schedule when I realized I'd given her the wrong dates. She is gracious, personable, and most importantly, an excellent bookkeeper. If she is taking on new clients, and you need help, HIRE HER.

Derek R.
I had an excellent experience with John Warner preparing my taxes this year. He has the ideal combination of highly detailed knowledge of tax law and good communication skills. The online system he uses for clients to enter info and upload documents is clear and easy to use; the process for entering everything seemed extremely efficient to me. When he was finished preparing my returns, he made a video, walking me through the return, and I found that very helpful. I plan to call upon him again when it's time to prepare returns next year, and I highly recommend him.

Sam M.
This was my first time working with a CPA to file our first year of small business tax return. Working with Joe was the most seamless process I could've hoped for, and he made everything incredibly simple for us. He explained everything we needed to go through very clearly and took the time to walk us through any questions or concerns we had. He was also very responsive with respect to communications, whether it was asking us for more documentation, clarifying our book entries, or anything else. He even helped us to get everything filed on time with both state and federal taxes even though we only reached out to set up an exploratory conversation less than 2 weeks before taxes were due. All in all, working with Joe made a huge burden seem weightless and I would highly recommend working with him!

Full Spectrum Accounting, Tax, and Advisory Support

Our services include tax planning and prep, full-service bookkeeping, and Fractional CFO services to help you make the best financial decisions for your business.

Planning for Your Business’s Future

The cannabis industry is evolving and rapidly changing all across the country. We provide extensive tax planning and financial forecasting to help you plan for what’s ahead.

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Why Dark Horse?

We work in the industry because we are passionate about the industry. We want to see your Canna-Business succeed, and we'll do everything we can to help you along the way.

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