New Frontier Data, the authority in data, analytics and business intelligence on the global cannabis industry, in partnership with CohnReznick, one of the largest accounting, tax and advisory firms in the United States, releases its latest report, The Cannabis Accounting & Financial Management Report: 2018-2019 Best Practices. The report examines the rapidly evolving financial dynamics of the booming cannabis industry, including surging investments, consolidation, tax implications, under-banking, real estate and more, presenting the case for and defining accounting best practices for the cannabis industry.
"Despite a growing majority of Americans and state governments supporting cannabis legalization, its federal prohibition creates unique challenges for cannabis businesses already trying to keep up with a fast-growing emerging industry. Investors and operators in the industry and others seeking to enter it should understand the complexities of running any legally compliant cannabis business," said Giadha Aguirre de Carcer, Founder and CEO of New Frontier Data.
The financial challenges facing cannabis business operators detailed in the report, include:
- All plant-touching businesses are liable for taxes under Internal Revenue Code §250E
- The 2017 Tax Cuts and Jobs Act afforded some breathing room to cannabis businesses
- Lowering operational costs is not just good business, it can be a source of competitive advantage
- Cost-segregation studies offer an effective way to minimize tax liabilities
- Operating a cash-based cannabis business creates additional complexity, and security risks
- As company valuations rise, thorough due diligence becomes more important
- Cannabis real estate is booming, but it is not without risks
- With international markets quickly opening, this is the dawn of a global cannabis industry
"The challenges identified in this report are unlike those faced by any other industry, which is why we felt the need to create a set of best practices cannabis business operators can turn to as they strive for compliance with all applicable tax and financial laws. We hope we can ease the burden of the many owners, operators and accountants who have ventured into the rapidly evolving cannabis industry and now face a very unique set of financial management challenges," said Michael Harlow, CPA, Partner, CohnReznick.
Visit newfrontierdata.com/financial-management to download the full report – The Cannabis Accounting & Financial Management Report: 2018-2019 Best Practices. New Frontier Data's online intelligence portal, Equio, provides readers with reports on global markets and a series of country profiles which offer an introduction to various markets, trends and recent investment activities in the cannabis industry.
About New Frontier Data:
New Frontier Data is an independent, technology-driven analytics company specializing in the cannabis industry. It offers vetted data, actionable business intelligence and risk management solutions for investors, operators, researchers and policymakers. New Frontier Data's reports and data have been cited in over 80 countries around the world to inform industry leaders. Founded in 2014, New Frontier Data is headquartered in Washington, D.C. with additional offices in Denver, CO, and London, U.K.
New Frontier Data does not take a position on the merits of cannabis legalization. Rather, its mission and mandate are to inform cannabis-related policy and business decisions through rigorous, issue-neutral and comprehensive analysis of the legal cannabis industry worldwide. For more information about New Frontier Data, please visit: http://www.NewFrontierData.com.
CohnReznick LLP is one of the top accounting, tax, and advisory firms in the United States, combining the deep resources of a national firm with the hands-on, agile approach that today's dynamic business environment demands. With diverse industry expertise, the Firm provides companies with the insight and experience to help them break through and seize growth opportunities. The Firm, with origins dating back to 1919, is headquartered in New York, NY with 2,700 employees in offices nationwide. CohnReznick is a member of Nexia International, a global network of independent accountancy, tax, and business advisors. For more information or media inquiries, please visit www.cohnreznick.com or contact Julie Rogers Murawski at 973-364-6693 or Julie.Murawski@CohnReznick.com.
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