Operating a cannabis business in Mississippi—or anywhere—isn’t business as usual. From 280E tax challenges to strict cash handling protocols and banking limitations, the financial picture of a dispensary or cultivation operation requires more than just basic bookkeeping.

We believe in helping cannabis business owners understand their numbers, their risks, and their opportunities—not just to survive, but to thrive in a heavily regulated market.

Here are the five financial reports every cannabis entrepreneur should understand—and why they matter to your business’s success and sustainability.

Purpose: Understand revenue, cost of goods sold (COGS), and operational expenses.

In the cannabis industry, your P&L isn’t just about income and expenses—it’s about navigating 280E. This report helps you track gross profit from cannabis sales, while separating out non-deductible expenses for tax planning.

Why it matters in cannabis:

• Helps identify COGS that are allowable under 280E.
• Clarifies net income for ownership decisions.
• Tracks operational efficiency in labor-heavy environments.

Transparency protects your license—and your future.

Purpose: Assess your company’s financial health—especially under cash-heavy conditions.

The Balance Sheet helps cannabis businesses monitor assets, liabilities, and equity, which is crucial in a sector with limited banking and capital access. It also supports investor conversations and licensing renewals.

Why it matters in cannabis:

• Validates inventory levels for compliance audits. 
• Helps evaluate working capital needs amid cash constraints. 
• Clarifies owner draws vs. retained earnings for legal structures. 

Integrity means knowing where you stand, not just with your books, but with your responsibilities to regulators, investors, and community partners.

Purpose: Track how cash moves through a business that may be under-banked or unbanked.

Most cannabis companies handle a large volume of physical cash. This report helps you understand how cash is generated, where it’s spent, and how much is truly available after taxes and overhead.

Why it matters in cannabis:

• Ensures sufficient cash for payroll, taxes, and secure transport. 
• Protects against theft, misuse, and poor cash management. 
• Aids in planning tax payments, especially with limited deductions. 

Cash flow clarity honors your obligation to your employees, your license, and your values, even in a cash-heavy world.

Purpose: Monitor unpaid invoices and keep payment cycles tight in B2B cannabis operations.

While dispensaries operate in a retail setting, cultivators and manufacturers often extend credit to wholesalers or retailers. This report helps ensure you get paid—on time and in full.

Why it matters in cannabis:

• Minimizes bad debt in tightly capitalized operations. 
• Identifies slow-paying partners and potential risk. 
• Improves budgeting and cash flow planning. 

Setting clear expectations, enforcing boundaries, and making sure your business relationships are rooted in mutual accountability.

Purpose: Stay aligned with compliance costs, tax estimates, and operational goals.

In cannabis, everything costs more—compliance, security, insurance, taxes. This report shows whether your business is staying on plan—or if your assumptions need a reset.

Why it matters in cannabis:

• Supports cash reserve planning for quarterly tax obligations. 
• Flags over- or under-investment in compliance-related costs. 
• Empowers license holders to make informed mid-year pivots. 

Holding your plans up to reality—and making decisions that reflect your mission, not just your margins.

In the cannabis space, your financial reports aren’t just documents. They’re evidence of stewardship, signals to regulators, and tools for advocacy. Whether you’re a dispensary operator, cultivator, or vertically integrated business, understanding these reports is how you lead with confidence and integrity.

We serve Mississippi’s cannabis entrepreneurs with a commitment to authentic conversations, just financial practices, and integrity that protects what you’re building.

In cannabis, clarity isn’t just compliance—it’s liberation.
Let’s help you lead with both.