Cost Tracking Methodologies for Cannabis Businesses
As a cannabis business operator, you understand that taxes can be a complete nightmare because of IRC 280E. Being able to properly calculate your CoGS is paramount to having accurate tax filings and solid records in case of an audit.
For dispensaries, it’s not incredibly hard to calculate CoGS, but how do you make accurate calculations if you are a cultivator or manufacturer…or an even more complex scenario, a vertically integrated business.
You have to take into account your plants-in-progress, product-in-progress, and separate CoGS from actual inventory.
Surely you can see that this type of cost tracking can get very complex, very quickly.
Next Wednesday (February 26th @ 12 pm Pacific) we will do a live video presentation to help you better understand the proper cost and inventory tracking methodologies for cannabis businesses.
The info in this presentation is extremely important because it will give you a solid base of understanding when working on your books and knowing that your numbers are calculated properly.