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Full Cycle CFO

(970) 235-2025

  • Full Cycle CFO
    • Cannabis Accounting
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    • Full Cycle CFO
    • Cannabis
      • Cannabis Accounting
      • IRS Code 280E
      • Banking In Cannabis
      • Audit
    • Financial Services
      • Projected Cash Flows
      • Operating and Cash Cycles
      • Business Intelligence
      • Capital Budgeting
      • Cost Accounting
      • Inventory Management
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      • Our Team
      • Company History
      • CFO vs Accountant
      • Our Values
    • Contact Us
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Full Cycle CFO

(970) 235-2025

Signed in as:

filler@godaddy.com

  • Full Cycle CFO
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  • Book Online
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  • My Account
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Audit

Cannabusinesses experience audits regularly with substantial negative outcomes of a bad audit. There are a variety of substantiation tools you can use to assist in supporting your business in an audit, most being required by the state (on a state-by-state basis). Audits are more likely to occur for cannabusinesses, so it is important to have records/receipts, keep up-to-date state and federal codes, stay on top of deadlines, properly deduct business expenses, and appropriate verification tools. 


  • Receipts. Knowing what counts as a receipt is a small, yet important, aspect of your records. To qualify as a receipt for a transaction you need: (1) the amount, (2) the date, (3) the place, and (4) the nature of the expense. Receipts can be paper or digital as long as they are still legible. 
  • Cash. Protecting your business in an audit comes down to the everyday business interactions, but also about your policies. Your internal cash handling policies and records should be well-documented.  
  • Form 8300. In addition to cash records discussed briefly above, when cash transactions meet or exceed $10,000, a specific form needs to be completed to keep your business in compliance. Form 8300 should be completed every time you go over this limit.
  • Documenting your 280E compliance. 280E compliance is important; however, it means nothing if it is not properly documented. To know more about being compliant with these federal regulations, check out our entire dedicated page on 280E compliance. 

The Full Cycle CFO Difference

Why Choose Our Team?

Audits can be as small as an accuracy claim so every number in your books should be properly recorded and substantiated. In our industry, properly classifying our deductions can be a huge benefit to your company when faced with an audit. 


Be prepared to handle an audit when it will inevitably occur. We will help you when that unavoidable audit arrives.

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WE CAN HELP YOU SCALE BY PROVIDING BUSINESS INTELLIGENCE

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