At CashGrows CPAs, we prepare, report, analyze and summarize cannabis financial data collected by bookkeepers. Financial statements include the preparation of balance sheet, profit and loss statement, and cash flow statements. The accounting reports give a snapshot of the financial position as well as the performance of your cannabis business.
Why is it important?
Financial statements are crucial for every business but especially for cannabis businesses. Viewing the month over month financial health of a cannabis business will help you make better financial and operational decisions.
Private investors are attracted to the cannabis sector since most banks refuse to work with cannabis operating companies. In order to have a large private investor invest into your cannabis business, you will need a strong set of financial statements.
Lately the cannabis industry has more mergers and acquisitions than almost any other industry. When a larger company is looking to acquire or merge with a cannabis business, a strong set of financial statements are required to assess the health of your cannabis business. Having a proper set of financial statements will help you get a better valuation for your cannabis business.
At CashGrows CPAs, we prepare financial statements for cannabis businesses in accordance to GAAP and taxable income. We advise our cannabis clients to use monthly financial statements to assess their business health. The statement of cash flows is one of the most important financial health indicators for cannabis companies and requires constant monitoring.