Cannabis Business Accountants in Utah

Key Points:

• Sales Tax: Tax-exempt for medicinal cannabis in dosage forms, while medical cannabis devices sold at pharmacies are taxable.
• Services Offered by Cannabis Accountants: Product tracking, financial reporting, regulation compliance, cash flow strategies, and risk management.
• Importance of Cannabis CPA: Proficient in cannabis law and industry changes, managing financial regulations.

Utah's cannabis businesses, such as cultivators, processors and medical cannabis pharmacies all need to use a cannabis CPA who is familiar with the sector’s unique financial and regulatory requirements.

• Are you a Utah-licensed CPA offering services to cannabis-related businesses? Request to be listed .

Sales Tax in Utah

Sales at licensed medical cannabis pharmacies are exempt from taxes when it comes to cannabis in medicinal dosage forms or products in medicinal dosage forms. However, sales of medical cannabis devices by these pharmacies remain taxable. Eligible cannabis businesses may also qualify for a nonrefundable credit of 10% on their combined annual state sales and excise taxes, introduced through Senate Bill 71.

Comparing Accounting Needs for Cannabis, CBD, and Hemp Businesses

Cannabis Businesses: Subject to the strictest regulatory and tax standards, these businesses benefit from CPAs versed in Section 280E and Utah’s rigorous tracking rules.

CBD Businesses: These businesses face less stringent regulations and can deduct common business expenses, though they must still meet Utah’s CBD guidelines.

Hemp Businesses: Enjoy more flexibility, benefiting from standard agricultural deductions and subsidies. Their tax planning is generally less complex.

Services Offered by Cannabis Accountants

• Product Tracking and Inventory Control: Managing the tracking of products from seed to sale, ensuring regulatory compliance, and minimizing losses.
• Transparent Financial Reporting: Preparing accurate financial statements for investors, stakeholders, and regulatory agencies.
• Compliance with Regulations: Ensuring full adherence to federal, state, and local regulatory requirements.
• Optimized Cash Flow Strategies: Implementing strategies to improve cash flow management, essential in this cash-intensive industry.
• Financial Risk Management: Identifying and mitigating financial risks unique to cannabis businesses.

The Importance of a Specialized Cannabis Accountant

Cannabis accountants bring deep knowledge of state and federal cannabis laws, keep up with industry trends to offer relevant advice, and provide reassurance, allowing business owners to focus on operations.