High Rock Accounting

Calling someone a "contractor" seems like an easy way to save on payroll taxes and benefits, but it isn’t a label you can choose just for convenience. If you control when, where, and how a worker operates, the IRS, state, and Department of Labor likely view them as an employee.

Getting this wrong triggers retroactive back taxes, missed FLSA overtime pay, and steep penalties that can quickly jeopardize a small business. High Rock Accounting's Head of Tax, Susan L. Wozena, CPA writes about how to prevent misclassification before the government does it for you.

Read more here:
👉https://www.highrock.co/2026/08/contractor-or-employee-choose-wrong-and-it-could-cost-you/

Eli Lilly filed six federal lawsuits over retatrutide, and if you think this was just another GLP-1 compounding battle, think again.

Unlike tirzepatide or semaglutide, retatrutide has zero FDA approval. That single detail completely destroys the legal gray area businesses used to hide behind, fundamentally shifting the risk math for operators, investors, and consumers alike.

High Rock's Melissa Diaz writes about this in our latest article
Read Part 1 in the link👉https://www.highrock.co/2026/08/eli-lilly-retatrutide-lawsuit-unapproved-weight-loss-drug/

$6B in cannabis debt is due by the end of 2026, and the industry is rapidly splitting in two.

In Part 1 of our Cannabis Debt Series, High Rock Accounting partner Melissa K. Diaz, CPA breaks down the maturity wall facing operators. With capital pools shrinking and borrowing rates hitting up to 23%, expensive debt combined with 280E pressures leaves zero room for financial missteps.

While top operators are successfully refinancing, weaker balance sheets are pushing businesses into restructuring. The operators who survive won't be lucky, they'll be the ones getting their cash flow in order before desperation sets in.

Read part 1 of the series here:
👉https://www.highrock.co/2026/08/cannabis-debt-wall-6b-loans-operators/

🍀 Most cannabis operators use multiple entities to protect assets and manage 280E. It’s a solid strategy, but moving cash between those entities can trigger unexpected tax bills from the IRS and state authorities.

Even when money stays inside your business family, intercompany management fees, rent, below-market pricing, and forgiven payables can create taxable income out of thin air.

Before you close your books this year, take a close look at how your entities interact with each other.

Which intercompany transaction has caused the biggest head-scratcher for your business? Drop your thoughts or questions below, and click the link to read Melissa's full breakdown of the seven biggest tax traps to watch.

👉 https://www.highrock.co/2026/08/cannabis-intercompany-transactions-tax/

Most dispensary dashboards track storewide averages like basket size and inventory turns. But blended figures don't tell you how individual customers, budtenders, or brands are actually performing.

In our latest article, Melissa Diaz, CPA breaks down three underused metrics you can build directly from the POS data you already generate—from uncovering true customer loyalty to protecting your margins.

Which non-standard KPI has made the biggest difference in how you manage your dispensary? Share your thoughts below, then head to
👉https://www.highrock.co/2026/08/cannabis-retail-kpis-data/ to read the full breakdown.

The DEA hearing wrapped up, but if you run an adult-use cannabis operation, the waiting game is just beginning. Medical tax rules shifted, but recreational remains tied to Schedule I, leaving multi-license operators navigating two completely different tax realities at once.
While we wait on post-hearing briefs and non-binding recommendations, the biggest mistake is standing still. The operators who win this transition aren't guessing the final timeline; they are actively modeling their 280E exposure and cleaning up their financial infrastructure right now. Read more in Melissa's latest article here: https://www.highrock.co/2026/08/adult-use-cannabis-rescheduling-280e-tax/

How is your team preparing your cash flow strategy for the gap between medical and adult-use rescheduling? Let us know in the comments.

Are you building your peptide financial model around regulatory uncertainty or just wishing it away? With the FDA’s Pharmacy Compounding Advisory Committee reviewing key peptides, having one static financial projection isn't enough to satisfy investors. You need scenario planning built for reality.
Check out our latest article by Melissa K. Diaz, CPA

👉https://www.highrock.co/2026/07/peptide-business-financial-model-regulatory-uncertainty/

Are you rushing to collapse your cannabis dual-entity structure because of the Schedule III medical rescheduling? Unwinding these setups too quickly is a costly mistake.

While qualifying medical operations finally have 280E relief, adult-use cannabis remains on Schedule I. If you run a dual-license operation, comingling these activities in a single entity without clean legal separation creates massive IRS audit risk. Even for medical-only operators, collapsing a management company can trigger regulatory hurdles, lender issues, and unexpected state tax penalties.

Before you dismantle what took years to build, you need a precise tax and state-conformity analysis. If your structure hasn’t been reviewed since the April rescheduling order, the conversation is officially overdue. Read all about it in our latest blog. Read more here 👉 https://www.highrock.co/2026/07/cannabis-dual-entity-structures-schedule-iii/