News & Insights
Recent Posts
- Looking for Funding? Consider SBA Loans
- Protect Yourself From Fraudsters Impersonating the IRS and Other Tax Scams
- Self-Employed? Don’t Overlook a Roth IRA
- Knowing What’s Coming: Why Every Local Government Needs a Capital Improvement Plan
- Is an Advisory Board the Right Solution for Your Nonprofit?
- Three Key Considerations for Effective Grant Management in Local Governments
- What You Can Do to Protect Your Business from Rising Costs
- When Outstanding Invoices Indicate Underlying Operational Issues
Avoid the Pain of Annual Reporting with the State of Michigan
Take advantage of the grace period provided by the Cannabis Regulatory Agency (CRA) during 2022. Under its Advisory Bulletin dated January 3, 2022, the CRA provided a holiday for 2022 for the required annual financial statement (AFS).
The CRA is using this time to revamp its reporting process and catch up on outstanding AFS reports for 2020 and 2021. The reporting requirement will resume in the near future.
This is the perfect time for all cannabis entities under the AFS requirement to revisit and revamp their accounting practices to prepare for the CRA’s new reporting requirements. Some best practices that all entities should consider are:
The CRA is using this time to revamp its reporting process and catch up on outstanding AFS reports for 2020 and 2021. The reporting requirement will resume in the near future.
This is the perfect time for all cannabis entities under the AFS requirement to revisit and revamp their accounting practices to prepare for the CRA’s new reporting requirements. Some best practices that all entities should consider are:
- Appropriate and detailed cash handling procedures.
- Maintain a detailed and accurate cash log of all transactions describing who, what, and when.
- Maintain documentation of all receipts, invoices, purchase orders, and transfer requests.
- Maintain agreements for all leases and outsourced services.
- Maintain proper separation of medical and adult-use activities within your accounting documentation.
- Routinely reconcile accounting records with METRC and State of Michigan tax filings.
- Properly adhering to owner agreements with regards to owner distributions.
- Document, document, document, everything. An audit trail of activity is your friend.
We know cannabis, and we can help.
The materials provided in the News & Insights section are for general informational purposes only and may not reflect the most current legal, tax, or financial developments. While we strive to ensure accuracy at the time of publication, Maner Costerisan does not guarantee that the information remains up-to-date or free from error. We recommend consulting directly with a Maner Costerisan team member to confirm the applicability and relevance of any information to your specific situation.