Budgeting & Analysis
A budget is only useful if someone checks it against reality.
A budget is only useful if someone checks it against reality. We build the budget and then run the variance analysis that makes it a management tool rather than a document.
What's Included
Why This Differs In Cannabis
Cannabis budgets fail on cash timing more than on operating assumptions. The tax liability under 280E is large, arrives on a schedule disconnected from cash flow, and is systematically underestimated by operators budgeting from net income. A budget that does not reserve for it correctly will look fine for three quarters and then break.
It will look fine for three quarters and then break.
Why MCA
We have served licensed cannabis operators since 2015 — one of the first firms in the country to build a practice around it — and we have worked with more than 100 operators across 30+ states. Cannabis is all we do, and all we have ever done.
Frequently Asked
We have never had a formal budget. Where do we start?
With your historical data and a realistic first-year version. Sophistication comes later.
How often is variance reviewed?
Monthly with the close.
Can you budget by location?
Yes, and we recommend it for multi-location operators.