In the complex cannabis industry, getting taxes right is a make-or-break for operators. Tax liabilities are often the largest expense for cannabis firms, and non-compliance leads to crippling penalties. Monarch works closely with leading operators to automate their tax workflows for massive time and cost savings. Here we highlight real customer success stories that demonstrate Monarch’s transformative impact on cannabis tax management.
Thank you for reading this post, don't forget to subscribe!Cultivator Slashes Tax Prep Time by 80%
A large California cultivator was spending 25 man-hours per month on tax preparation using manual spreadsheets. With dozens of excise tax codes based on flower type, potency tiers, and local taxes, calculations were extremely cumbersome. By implementing Monarch, they automated tax computation and cut their monthly tax prep down to just 5 hours – an 80% time savings. The finance team can now focus on value-added work.
Success Across the Supply Chain
In addition to cultivators, Monarch has delivered major tax benefits for:
- Manufacturers, with 10-40% reductions in tax liability
- Dispensaries, improving sales tax accuracy by 99%
- Multi-state operators, consolidating 17 entities into one platform
- Distributors, cutting tax prep time from weeks to days
- Retail brands, gaining real-time visibility into sales
The results speak for themselves – Monarch meaningfully improves cannabis tax workflows.
Vertically Integrated Firm Achieves “5-Day Close”
A vertically integrated firm with retail, distribution, and cultivation entities struggled with disparate data and disjointed tax workflows across divisions. Monarch provided a single source of truth connecting their entire supply chain. Real-time reporting and automated consolidations enable them to finalize their monthly financials in just 5 days instead of 3+ weeks.
Monarch Supports Rapid Growth
With Monarch, rapidly scaling cannabis companies can:
- Onboard new locations and entities quickly
- Maintain unified workflows across the enterprise
- Understand performance across acquired assets
- Model the tax impact of expansion decisions
- Prevent tax workflows from spiraling out of control
This enables sustainable growth versus chaotic expansion.
Dispensary Reduces Tax Liability by 13%
A dispensary was overpaying taxes due to inaccuracies in their manual tax computations. By switching to Monarch, they eliminated calculation errors. Monarch’s cannabis tax experts also helped them maximize legitimate tax deductions. The result was a 13% reduction in their overall tax liability, putting dollars back on their bottom line.
Maximizing Deductions and Credits
With guidance from Monarch’s tax professionals, cannabis firms can:
- Classify inventory properly to optimize 280E deductions
- Utilize R&D and other business tax credits
- Establish reasonable compensation for owners/officers
- Deduct certain administrative expenses
- Accelerate depreciation on qualified assets
- Amortize start-up costs for new entities
Proactive Reconciliation and Reporting
Key features that prevent compliance penalties include:
- Automated Metrc and POS integrations
- Scheduled inventory reporting
- Rules-based transaction matching
- Custom reconciliation cadences
- Change management logs for auditing
- Multi-location visibility
Together these provide the transparency and controls needed to avoid missteps before they happen.
Monarch has helped leading cannabis firms across the supply chain optimize their tax workflows, reduce liabilities, and avoid non-compliance penalties. Let Monarch provide the tax expertise and technology to take your cannabis business to the next level. Learn more at Monarch.