Cannabis Business Accounting Guidelines for Oregon Businesses
In the state of Oregon, businesses that deal with the retail sale of recreational cannabis products are regulated by the Oregon Liquor Control Commission, or OLCC. Medical marijuana dispensaries come under the jurisdiction of the Oregon Medical Marijuana Program, or OMMP. All cannabis business owners must be licensed and must meet the state tax requirements. Instructions on what sort of records should be maintained by a cannabis business are also available from the IRS. In general, cannabis businesses are taxed more and can deduct less than other types of businesses. This is outlined in IRS Code 280E, which states that cannabis retailers face much higher tax rates than other corporations.
Balance Sheets and Financial Statements
Since it is only during recent years that the sale of recreational cannabis has been legal, the smart thing for any cannabis business owner to do is to keep the most accurate and detailed balance sheets and financial statements possible. These business owners are often operating under careful scrutiny and must therefore strive to be proactive about their own accountability. Hiring professional certified public accountants to handle tax-related issues and general bookkeeping and accounting is a good way to do this because then the business owner is working with an outside third party who is trained to keep all of this in order.
Quarterly Online Tax Filing
The state of Oregon requires that all cannabis retailers file their tax information online on a quarterly basis. This information can be filed via the Revenue Online website. However, the tax payments themselves are due on a monthly basis. Oregon marijuana retailers get their licenses through the OLCC, and then they must register with the Oregon Department of Revenue, or ODOR. This is the agency through which cannabis retailers pay all their taxes and can set up an individualized payment plan.
Call to Schedule a Free Consultation With an Oregon Certified Public Accountant Today
If you are the owner or manager of an Oregon cannabis business and want to make a solid plan to handle your cash flow, call to schedule a free consultation with an Oregon certified public accountant today. The well-trained professionals at the digital accounting firm Perpetual CPA will help you keep all of your records in order so that you meet both state and federal tax and accounting guidelines and requirements. Visit our web site at perpetualcpa.com or give us a call at (503) 217-4114 and speak with our friendly staff to set up your consultation. You’ll rest easier knowing that all of your cannabis accounting needs are in good hands.