Cannabis CPA Services in Troy, Michigan

Much of the cannabis work centered in Troy is ownership-level rather than storefront-level: holding structures, management companies, and investor groups overseeing licensed operations located elsewhere. The accounting emphasis shifts toward consolidation, governance, and reporting credibility.

Cannabis accounting is not a single task. Bookkeeping, cash handling, banking, sales records, inventory, payroll, tax and financial reporting all feed one another, and a break in any one of them shows up somewhere else. The work is to connect those systems so the numbers management sees each month can be traced back to source records.

Typical scope includes multi-entity bookkeeping oversight, consolidated financial reporting, tax preparation across entities, budgeting, forecasting, and lender or investor reporting.

At the ownership level, bookkeeping quality is judged by whether the consolidated numbers can be traced back to individual entity ledgers without a reconciliation exercise built from memory.

• A dated close calendar with owners for each task
• Deposit-by-deposit matching between sales and banking
• Vendor bills coded to consistent expense and cost accounts
• Payroll liabilities agreed to provider reports
• Inventory and COGS posted from reconciled subledger data
• A reviewed trial balance before reports are issued

A recurring engagement is described in more detail on the cannabis bookkeeping services page, and the cannabis bookkeeping guide covers the mechanics for operators who want to understand the process first.

Where the group holds retail licenses, store-level accounting still needs the same discipline: sales, cash, deposits, inventory movement, and margin reviewed monthly by site.

• Point-of-sale totals agreed to recorded revenue
• Tender detail separated so cash is provable
• Deposits matched individually to the bank
• Inventory decrements compared with sales activity
• Cost of goods sold posted from inventory records
• Gross margin reviewed by category before close

Retail-specific scope is set out on the dispensary accounting page.

Inventory is where operational records and financial records have to meet. The operational system tracks quantities; the ledger tracks value. Both have to move in step, and the difference between a quantity and a cost is where most inventory problems begin.

Inventory is usually the largest balance-sheet judgment in the group. Consistent costing across entities is what makes consolidated margin comparable period to period.

Reconciliation between operational records and the ledger has to be performed at the licensed entity level, then rolled up. Group-level inventory numbers inherit every unreconciled site variance.

Reconciliation work is described on the Metrc reconciliation page, with background in the Metrc guide. We are an independent accounting practice and are not affiliated with, endorsed by, or partnered with Metrc or any regulatory agency.

For investor-backed groups, documentation is the point. Positions should be applied consistently across entities, supported by contemporaneous records, and reassessed against current federal rules each year.

Where Section 280E applies, the practical response is accounting discipline rather than year-end adjustment: costs classified correctly as they occur, inventory costing applied consistently, documentation retained, and workpapers that tie the return to the ledger. Federal treatment can change, so positions should be evaluated against current rules and the operator's own facts each filing season. Further detail is on the 280E tax compliance page and in 280E explained.

Preparation spans entities with intercompany activity, allocations, and related-party arrangements that need to be agreed before any return is drafted.

Return work is handled through cannabis tax preparation, and state-level sales and excise reporting through sales tax compliance. Applicable Michigan requirements should be evaluated based on current rules and the operator's license types.

Management-company payroll allocated across licensed entities needs a documented basis, since the allocation affects entity-level results, tax positions, and investor reporting alike.

Our scope is payroll accounting, reconciliation and provider coordination rather than running pay cycles or acting as an HR administrator. See cannabis payroll accounting for the full description.

This is where fractional CFO work is often the primary engagement: budgeting, rolling forecasts, KPI frameworks, capital planning, covenant tracking, and board-level reporting.

• Rolling cash-flow forecasting with weekly detail
• Annual budget with monthly phasing
• KPI set matched to the operating model
• Management reporting with written commentary
• Scenario planning for expansion or contraction
• Capital planning and lender or investor reporting

Engagement structure is described on the fractional CFO page, with background in the cannabis CFO guide.

A group reporting package should include consolidated statements, entity schedules, location performance, KPI trends, budget variance, and a written explanation of what moved and why.

A usable reporting package includes an income statement with meaningful cost separation, a balance sheet where every material account is reconciled, a cash view, gross margin by category, inventory movement and — for operators with more than one site — location-level results alongside the consolidated picture. More on the financial reporting page.

Group cash planning covers operating cash by entity, intercompany funding, debt service, distributions, and committed capital projects in a single forward view.

• Cash runway measured in weeks, not impressions
• Inventory purchasing timed against sell-through
• Payroll funding scheduled ahead of each cycle
• Tax reserves set aside rather than found later
• Debt service and lease obligations mapped forward
• Capital spending sequenced against available cash

See cash-flow planning for how forecasts are built and maintained.

Where the group owns retail, store-level reporting should be granular enough to support decisions about staffing, pricing, and whether a site continues to earn its capital.

Cultivation assets held within the group need production cost accounting that supports both internal transfer decisions and consolidated margin analysis.

Production accounting captures direct labor, facility cost, consumables and overhead as they attach to a crop cycle, then carries them into finished goods so cost reporting reflects how the grow actually performed. Detail is on the cultivation accounting page.

Processing entities require per-run costing and consistent yield measurement, since those numbers drive both internal pricing and group profitability reporting.

Processing operations move raw material through production into finished inventory, with yield and labor determining unit cost. Where production spans periods, work-in-process concepts apply. See manufacturing accounting.

Brand entities need standalone economics even when distribution runs through affiliated retail, or the group cannot tell which brands justify continued investment.

Wholesale models add receivables management, co-packing arrangements where applicable, inventory held at other facilities and marketing spend that has to be measured against revenue rather than assumed. Reporting needs to show contribution by product line, not just total sales.

Location-level reporting on a common format is the basis for portfolio decisions. Without it, capital tends to follow familiarity rather than performance.

• One chart of accounts applied across every site
• Location codes on revenue, cost and payroll
• Inventory tracked per site, not pooled by default
• Shared costs allocated on a documented basis
• Store-level profit and loss issued each month
• Consolidated reporting that reconciles to the sites

Holding structures, property entities, management companies, and license entities each need their own reconciled books, agreed intercompany balances, and documented arrangements.

Each entity needs its own ledger, its own reconciliations and its own tax records. Intercompany balances have to agree in both directions, and shared expenses need a basis that can be explained. We handle the accounting side of that structure; legal structuring advice should come from your attorney.

Cleanup at group level often means reconstructing intercompany activity and restating consolidated reporting so trend analysis becomes possible.

1. 01Establish the last period that can be relied on
2. 02Reconstruct banking and cash activity forward from there
3. 03Rebuild inventory and cost of goods sold period by period
4. 04Reconcile payroll liabilities to provider records
5. 05Clear unexplained balance-sheet accounts
6. 06Agree intercompany balances between entities
7. 07Restate reporting so periods are comparable
8. 08Move onto a normal monthly close going forward

Governance-grade controls matter here: approval thresholds, restricted access, independent review of journal entries, and a monthly close package reviewed by someone outside the preparation process.

• Cash counted at defined shift boundaries with signatures
• Vendor master changes restricted and logged
• Inventory adjustments require a written reason
• Segregation between recording and custody wherever headcount allows
• Monthly review of unusual entries and round-dollar postings
• Documented approval before payments leave the business

Controls reduce risk and make problems visible sooner; no control environment eliminates error or fraud entirely, and the point of monthly review is to catch what procedures miss.

Ownership-level accounting problems usually appear as reporting inconsistencies rather than as day-to-day operational errors.

Consolidation that cannot be traced to entity ledgers

Reconcile the consolidation to each entity every month

Inconsistent costing methods between entities

Apply one documented inventory policy group-wide

Management fees without documentation

Support allocations with a written basis and agreements

Budgets prepared once and never revisited

Update forecasts monthly against actuals

KPI definitions that change between reports

Fix definitions and calculate them consistently

Debt covenants tracked outside the accounting cycle

Include covenant metrics in the monthly package

Capital spend approved without cash modelling

Model the cash effect before commitment

Entity results distorted by allocation timing

Post allocations in the period they relate to

Investor reporting inconsistent period to period

Standardise the format and calendar

Tax planning disconnected from the books

Base planning on reconciled interim results

Group engagements are sequenced so structure and intercompany matters are resolved before recurring reporting is relied upon.

1. 01Walk the operation and document how transactions originate
2. 02Map entities, licenses, and the ledgers that support them
3. 03Assess the current ledger for reliability and gaps
4. 04Trace cash from register to deposit to bank statement
5. 05Assess inventory records, costing, and reconciliation history
6. 06Reconcile payroll registers to liabilities and cash
7. 07Review prior filings and open tax exposures
8. 08Scope cleanup and prioritise what affects reporting first
9. 09Rebuild the chart of accounts around cost separation
10. 10Set a repeatable close calendar with clear ownership
11. 11Issue a monthly reporting package with commentary
12. 12Add tax preparation, reconciliation, or advisory scope over time

We support ownership groups based in Troy and Oakland County with operations across Michigan, including Detroit, Pontiac, Warren, and Sterling Heights.

Work is performed remotely with scheduled on-site visits where they add value, so operators are not limited to accountants who happen to be nearby. Serving cannabis businesses in Troy and across Michigan.