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Cannabis Accounting, Tax & Business Advisory Services

Cherry Bekaert provides the cannabis industry with a diverse suite of accounting, tax & business advisory services to help you meet your growth objectives.

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Your Steady Guide in an Ever-Changing Landscape

Few industries are both as dynamic and rapidly transforming as the cannabis industry. Business owners in this space are met with both great opportunities, as well as genuine uncertainty surrounding regulatory requirements, complex compliance tax planning and technical accounting matters.

How Cherry Bekaert Helps Cannabis Companies

While state laws and reporting requirements fluctuate and impact this booming and relatively new business industry, our professionals maintain acute awareness of existing regulations and how they affect our clients’ businesses. For more than 75 years, Cherry Bekaert has been laser-focused on serving high-growth companies in a variety of industry verticals, and we approach the cannabis space in the same way. We are in the business of adding value to our cannabis clients, not simply performing compliance and advisory services. Our goal is to bring ideas, improvements and efficiencies that contribute to your success.

Extensive Resources To Support Your Cannabis Operation

Whether your business functions as a small operation, a single-state operator (SSO), multi-state operator (MSO), or it provides ancillary services to the cannabis industry, Cherry Bekaert offers a diverse suite of accounting, tax and business advisory services to help you meet your growth objectives. From seed to sale, our trusted advisors, extensive resources and global reach uniquely position us to help your organization with:

Our services are designed to help you navigate a complex and dynamic regulatory environment with ease.

How Can We Support Your Cannabis Company’s Growth?

Our team of accountants and advisors is highly experienced in the cannabis industry and ready to help support your company, no matter its stage of growth. 

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Cannabis Accounting, Tax & Business Advisory Services

Whether your company is involved in cultivation, manufacturing, distribution, or dispensaries, at Cherry Bekaert, we understand cannabis. 

Our team assists plant-touching companies with a suite of tailored services from accounting, financial reporting, and internal control needs, to accessing public markets. As strategic challenges shift, let us be your guide your forward.

Top Accounting Services for Your Growing Cannabis Business

Going Public

Many cannabis companies go public as emerging growth companies and must assess management controls under SOX 404(a). However, we have seen our cannabis clients’ market cap increase rapidly to a size where management and the external auditor are required to assess all internal controls over financial reporting (under SOX 404(b)).

We recognize you have a business to run, so our methodology focuses on delivering what matters in a cost-efficient, turn-key manner. Scaling your SOX program is critical. We work with our clients to create solutions that are risk-based and practical to not only comply with standards, but also provide sustainability in core business processes as your company grows.

Learn More

Optimizing Deductions

Section 280E currently limits the amount of federal credits cannabis clients can utilize. However, depending upon the state tax laws and your legal entity structure as a “plant-touching” company, you pay plenty of tax. Therefore, you should consider applicable credits and other incentives where beneficial.

We help clients identify missed credits and establish advantageous methods of accounting for optimizing deductions. Our team of specialists help clients realize the following value-add opportunities:

  • Cost Segregation Plus Studies
  • Employee Retention Credits
  • Energy-Efficient Commercial Buildings §179D
  • Fixed Asset Review Analysis/TPR
  • Meals & Entertainment Study
  • Research & Development Credit
Learn More

Leverage Data to Achieve Efficiency

We have seen it. As cannabis companies grow organically and through acquisition, significant efforts are needed to drive operating efficiencies. Our Cannabis Advisory practice helps clients leverage data to achieve efficiencies from cultivation to dispensaries. Certain technology providers will not engage with plant-touching entities. Nevertheless, the technology environment continues to mature and offer products better suited for mid- and large-cap cannabis companies. At Cherry Bekaert, we believe digitally enabled organizations can better predict, innovate, perform and compete, and we tailor our solutions for the strategies deployed in plant-touching companies.

Learn More

Accounting for Multiple Revenues

Transactions are abundant in the cannabis space, and more are imminent. Most cannabis companies are being valued based on multiples of revenue rather than a more traditional valuation method, multiple of EBITDA. Revenue multiples vary widely based on the state and vertical in which the company operates. While there is some movement underway to begin to utilize EBITDA multiples in assessing underlying value, the valuation focus remains on revenue and top-line growth.

Our team continues to assist Canadian and U.S. registrants who have International Financial Reporting Standards (IFRS) and U.S. Generally Accepted Accounting Principles (GAAP) reporting needs. While plant-touching valuations are similar in many ways to any business, industry factors must be considered, such as cost of capital in the industry, Section 280E tax impacts, significant regulations, rapid industry changes and cash flow projection uncertainties.

In 2022, Cherry Bekaert was named Due Diligence & Valuation Firm of the Year at the 13th Annual Americas M&A Atlas Awards. A notable portion of our valuation revenues are earned serving cannabis clients.
Learn More

Other Cannabis Accounting, Tax & Advisory Services

We offer a full spectrum of cannabis accounting, financial and consulting services that provide cannabis and hemp businesses the insight they need to grow and succeed.

Advisory

Tax

Going Public

Many cannabis companies go public as emerging growth companies and must assess management controls under SOX 404(a). However, we have seen our cannabis clients’ market cap increase rapidly to a size where management and the external auditor are required to assess all internal controls over financial reporting (under SOX 404(b)).

We recognize you have a business to run, so our methodology focuses on delivering what matters in a cost-efficient, turn-key manner. Scaling your SOX program is critical. We work with our clients to create solutions that are risk-based and practical to not only comply with standards, but also provide sustainability in core business processes as your company grows.

Learn More

Optimizing Deductions

Section 280E currently limits the amount of federal credits cannabis clients can utilize. However, depending upon the state tax laws and your legal entity structure as a “plant-touching” company, you pay plenty of tax. Therefore, you should consider applicable credits and other incentives where beneficial.

We help clients identify missed credits and establish advantageous methods of accounting for optimizing deductions. Our team of specialists help clients realize the following value-add opportunities:

  • Cost Segregation Plus Studies
  • Employee Retention Credits
  • Energy-Efficient Commercial Buildings §179D
  • Fixed Asset Review Analysis/TPR
  • Meals & Entertainment Study
  • Research & Development Credit
Learn More

Leverage Data to Achieve Efficiency

We have seen it. As cannabis companies grow organically and through acquisition, significant efforts are needed to drive operating efficiencies. Our Cannabis Advisory practice helps clients leverage data to achieve efficiencies from cultivation to dispensaries. Certain technology providers will not engage with plant-touching entities. Nevertheless, the technology environment continues to mature and offer products better suited for mid- and large-cap cannabis companies. At Cherry Bekaert, we believe digitally enabled organizations can better predict, innovate, perform and compete, and we tailor our solutions for the strategies deployed in plant-touching companies.

Learn More

Accounting for Multiple Revenues

Transactions are abundant in the cannabis space, and more are imminent. Most cannabis companies are being valued based on multiples of revenue rather than a more traditional valuation method, multiple of EBITDA. Revenue multiples vary widely based on the state and vertical in which the company operates. While there is some movement underway to begin to utilize EBITDA multiples in assessing underlying value, the valuation focus remains on revenue and top-line growth.

Our team continues to assist Canadian and U.S. registrants who have International Financial Reporting Standards (IFRS) and U.S. Generally Accepted Accounting Principles (GAAP) reporting needs. While plant-touching valuations are similar in many ways to any business, industry factors must be considered, such as cost of capital in the industry, Section 280E tax impacts, significant regulations, rapid industry changes and cash flow projection uncertainties.

In 2022, Cherry Bekaert was named Due Diligence & Valuation Firm of the Year at the 13th Annual Americas M&A Atlas Awards. A notable portion of our valuation revenues are earned serving cannabis clients.
Learn More

Other Cannabis Accounting, Tax & Advisory Services

We offer a full spectrum of cannabis accounting, financial and consulting services that provide cannabis and hemp businesses the insight they need to grow and succeed.

Advisory

Tax

Your Nationally Recognized, Trusted Cannabis Accountants

Our nationally recognized cannabis accounting and consulting team has supported dozens of large cannabis companies with a full range of services. We have significant talent focused on the cannabis industry, advising companies while reporting on the U.S. and Canadian exchanges (in U.S. GAAP and IFRS), as well as providing risk advisory, internal audit, tax and transformation services to the largest public and private companies in the industry. Beyond compliance, our trusted advisors have helped cannabis companies transform their businesses with innovative solutions for growth.

Ranked among the largest accounting, audit, tax and advisory firms in the U.S., Cherry Bekaert serves clients across all 50 states and internationally. Thousands of clients look to Cherry Bekaert’s accountants and advisors for innovative, professional guidance on important operational and financial matters that advance their business goals.

“As a participant in one of the most fluid industries with uncertain regulation and complex reporting requirements, you need an advisor with demonstrated success in helping fast-growth companies thrive, pivoting when it’s necessary, but always keeping an eye on your company’s growth goals.”
Chris Rux
Partner | Healthcare & Life Sciences

Our Professionals

Connect With Us

Christopher F. Rux

Assurance Services

Partner, Cherry Bekaert LLP
Partner, Cherry Bekaert Advisory LLC

Chase Wright

Risk & Accounting Advisory Services

Partner, Cherry Bekaert Advisory LLC

William W. Billips

Tax Services

Partner, Cherry Bekaert Advisory LLC

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