Accounting, Tax, IRS & Marijuana

Colorado Marijuana Compliance Services

For most businesses outside of the marijuana industry, staying compliant is an extremely difficult task. There are rules from the IRS, state rules, and standard licensing regulations. And that's just for a 'normal' business. For marijuana businesses, however, it's a whole new animal - especially in Colorado. In Colorado there are regulations covering seed to sale to stay compliant with. Many of those rules start and end with keeping good records of everything. Our firm can help you, from starting your marijuana business all the way through ongoing compliance services, to keep you compliant with the Marijuana Enforcement Division, the Colorado Department of Revenue, and the IRS.


Below are the rules for business recordkeeping from Colorado Rule 901:

R 901 – Business Records Required

A. General Requirements

1. A Retail Marijuana Establishment must maintain the information required in this rule in a format that is readily understood by a reasonably prudent business person.

2. Each Retail Marijuana Establishment shall retain all books and records necessary to fully account for the business transactions conducted under its license for the current year and three preceding calendar years.      

a. On premises records: The Retail Marijuana Establishment’s books and records for the preceding six months (or complete copies of such records) must be maintained on the Licensed Premises at all times.

b. On- or off-premises records: Books and records associated with older periods may be archived on or off of the Licensed Premises.

3. The books and records must fully account for the transactions of the business and must include, but shall not be limited to:      

a. Current Employee List – This list must provide the full name and Occupational License number of each employee and all non-employee Owners, who work at a Retail Marijuana Establishment.

b. Secure Facility Information – For its Licensed Premises and any associated permitted off-premises storage facility, a Retail Marijuana Establishment must maintain the business contact information for vendors that maintain video surveillance systems and Security Alarm Systems.

c. Advertising Records - All records related to Advertising and marketing, including, but not limited to, audience composition data.

d. Licensed Premises – Diagram of all approved Limited Access Areas and any permitted off-premises storage facilities.

e. Visitor Log – List of all visitors entering Limited Access Areas or Restricted Access Areas.

f. All records normally retained for tax purposes.


B. Loss of Records and Data. Any loss of electronically-maintained records shall not be considered a mitigating factor for violations of this rule. Licensees are required to exercise due diligence in preserving and maintaining all required records.


C. Violation Affecting Public Safety. Violation of this rule may constitute a license violation affecting public safety.


D. Records Related to Inventory Tracking. A Retail Marijuana Establishment must maintain accurate and comprehensive inventory tracking records that account for, reconcile and evidence all inventory activity for Retail Marijuana from either seed or immature plant stage until the Retail Marijuana or Retail Marijuana Product is destroyed or sold to another Retail Marijuana Establishment or a consumer.


E. Records Related to Transport. A Retail Marijuana Establishment must maintain adequate records for the transport of all Retail Marijuana and Retail Marijuana Product. See Rule R 801 – Transport of Retail Marijuana and Retail Marijuana Product.


F. Provision of Any Requested Record to the Division. A Licensee must provide on-demand access to on-premises records following a request from the Division during normal business hours or hours of apparent operation, and must provide access to off-premises records within three business days following a request from the Division.

If you need help getting your marijuana inventory and marijuana accounting set up, contact us and we can help you plan it out and implement it. Stay compliant.


source for Colorado rules