IRS Audit Readiness Score for Cannabis Businesses

0

Check what applies below

We file every federal, state, and payroll return on time, every period.Our books are closed and reconciled monthly, not annually.Our seed-to-sale system reconciles to our general ledger every month, with variances explained in writing.We have a written COGS allocation methodology, applied consistently.Labor is split between production and non-production functions with contemporaneous time records.Daily cash logs with dual counts exist for every till, every day.Every deposit traces cleanly: POS total → count sheet → deposit slip → bank statement → ledger.Our chart of accounts separates capitalizable COGS from operating expenses.Related-party and inter-company transactions are documented at arm's-length terms.A cannabis-specialized professional prepares and reviews our returns.We could produce three years of records within a week if asked.We have never claimed ordinary deductions a plant-touching business cannot take.