In our previous article, we discussed how maintaining inventory on the accrual basis of accounting is a requirement of the IRS. In this installment we will discuss why we believe the accrual basis is best not only for inventory accounting but for overall accounting. There are 3 main reasons why we believe using the accrual basis of accounting is the best practice for cannabis producers: 1) Accrual basis financial statements provide better understanding of financial operating

Is your cannabusiness accounting for inventory appropriately? And if so, do you know how to efficiently convert costs for cultivation items such as nutrients, employee wages, electricity and rent, into finished goods inventory? In this article we'll tell you why inventory accounting is probably the most crucial and complex accounting topic for the cannabis industry as well as providing some suggestions to make your business more efficient. [For the purposes of this article we