Service
Audit Representation
Examinations of cannabis businesses tend to focus on inventory costing, cost of goods sold, and cash handling. Preparation is largely a documentation exercise, and the work that matters most happens before any notice arrives.
Examination Support
We coordinate the response, assemble the requested records, and prepare reconciliations that connect the return to the underlying books. Communication is centralized so the operator is not responding to requests piecemeal.
- Information document request tracking and response assembly
- Reconciliations from return to trial balance to subledger
- Explanation memos for costing methodology and allocations
State Tax and Regulatory Reviews
Sales and excise tax reviews focus on collection, exemption handling, and remittance. Regulatory inspections focus on monitoring-system accuracy and recordkeeping. Both are easier when reconciliations already exist.
Building an Audit-Ready File
A standing file containing the costing policy, allocation workpapers, monthly reconciliations, and cash procedures converts an examination from a reconstruction project into a retrieval exercise.
Scope of Representation
We provide accounting and tax representation within the scope of our engagement. We do not provide legal advice, and we coordinate with your attorney where a matter calls for it.
Frequently Asked Questions
- What triggers an examination?
- Selection criteria are not published. Cash-intensive operations with inventory-driven cost of goods sold generally warrant careful documentation regardless of selection risk.
- What should we do first after receiving a notice?
- Note the response deadline, avoid partial or informal responses, and assemble the records with your representative before replying.
- Do you guarantee an examination outcome?
- No. We prepare and present documentation supporting positions taken. Outcomes are determined by the examining authority.
Related Services
280E Tax Planning and Compliance
Section 280E planning, cost of goods sold methodology, and documentation support for licensed cannabis operators throughout Michigan.
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Reconciliation between the statewide monitoring system, inventory subledgers, and the general ledger for licensed Michigan cannabis operators.
Read moreTax Preparation
Federal and state tax return preparation for licensed cannabis businesses, with inventory-driven cost of goods sold support and reconciled workpapers.
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Read moreRelated Resources
Audit Preparation
How licensed cannabis operators can prepare for federal examination, state tax review, and regulatory inspection through documentation practices.
Read more280E Explained
A plain-language explanation of Internal Revenue Code Section 280E, what it disallows, and how inventory costing determines recoverable cost.
Read moreCannabis Accounting Guide
A practical guide to accounting for licensed cannabis businesses: chart of accounts, inventory costing, reconciliation, and monthly close.
Read moreDiscuss Your Operation With a Cannabis Accounting Specialist
Call to talk through your license types, current records, and reporting needs, or schedule a consultation at a time that works for your team.