Supporting a Growing Industry: Mike Young Discusses New Advisory Practice Serving Medical Cannabis Companies [Video]
November 18, 2016 - By: SC&H Group
For over 25 years, SC&H Group has been helping emerging companies to build, maintain, and grow their financial capabilities. So, to support an up-and-coming state medical cannabis (MC) industry, the firm launched an advisory practice serving growers, dispensaries, and ancillary companies. Learn more below about how SC&H Group works with cannabusinesses from seed to sale in the following video interview with Mike Young, Director of SC&H Group’s Audit Services and Tax Services practices.
SC&H Group provides cannabusinesses with specialized accounting and business process solutions, as well as strategic advisory services, to address the industry’s unique challenges—which are many.
For example, due to section 280E of the Internal Revenue Code, costs unrelated to MC production are disallowed. While this can have burdensome tax effects, the impact of 280E can be minimized with proper planning.
Also, while the process for license renewal has not yet been finalized, each applicant will likely need to submit an audited financial statement prior to approval. And, since MC customers primarily pay in cash, businesses must have strong internal controls and provide assurance of their proper design and handling.
These and other situations can be managed by working with an advisor to create a solid financial base early in development—ensuring that cannabusinesses are ready and organized to meet their short-and long-term objectives.
From cash flow forecasting to business planning, financial statement audits, internal controls consulting, tax planning, and business valuations, SC&H Group is positioned to help Maryland’s MC companies thrive in today’s uncertain environment.
Want to find out how you can minimize risk and maximize value within your MC business? Contact Mike Young here for more information.