For CPAs, accountants, bookkeepers, enrolled agents, CFOs, tax attorneys and more that are looking for guidance, tools, workpapers, processes, and systems specifically for Cannabis & CBD accounting and tax for dispensaries, grows, manufacturers, producers, transportation services and more. Our proven 4-part system has helped over 800+ accounting professionals provide world-class accounting to Cannabis businesses quickly, and build their firm in under 90-days.
The tax code clearly and unequivocally states...
No deduction or credit shall be allowed for any amount paid or incurred during the taxable year in carrying on any trade or business if such trade or business (or the activities which comprise such trade or business) consists of trafficking in controlled substances (within the meaning of schedule I and II of the Controlled Substances Act) which is prohibited by Federal law or the law of any State in which such trade or business is conducted.
U.S. Code Title 26. Internal Revenue Code § 280E - Expenditures in connection with the illegal sale of drugs
Cannabis businesses aren’t able to take deductions like most businesses can, which means that they are not legally able to take advantage of tax benefits for incurring expenses like...
Unless you understand how 471 works, have the knowledge and tools to do GAAP full absorption cost accounting, and can properly allocate expenses to Inventory and COGS, trying to beat 280E is futile. Check out the following court case reviews:Lessons in Compliance from Four Cannabis Court Cases
If you’re an accounting professional with Cannabis & CBD clients or hope to be one day and are trying to navigate the Federal tax laws, while keeping your clients compliant with local licensing rules, and are trying to legally limit their tax burden, we can help!
There is a legal way to reduce the tax burden of your clients business, but you have to understand the tax codes and have the right tools and process to do so and to be compliant.
There’s a number of challenges that Cannabis businesses face in addition to dealing with 280E and 471 including:
...and many others.
Since Cannabis businesses lean so heavily on their accounting teams, you’ll want to be properly equipped with the right knowledge, tools, and resources to help them navigate these issues, which is why the DOPE CFO program was created.
If you’re ready to jump in, click below to learn more and get started.Get Started
An overview of the Cannabis Accounting 4.0 program
The Cannabis & CBD Accounting 4.0 Program has helped over 1000+ accounting professionals successfully dive in, easily get up to speed, and start serving the growing number of Cannabis & CBD companies. As more states become legal, the need for trained Cannabis & CBD accounting professionals grows. This program contains everything that you need in order to provide World-Class accounting to your clients (and can even improve your current practices too!)
Andrew Hunzicker, CPA, also Subject Matter Expert for the AICPA!
DOPE CFO offers the most comprehensive and top notch Cannabis and CBD/hemp accounting & tax training program. Because there is little to no GAAP guidance yet for Cannabis and CBD/hemp (the Big Four are currently not involved in the industry), you will be hard pressed to find reliable accounting and tax guidelines online or through the AICPA.
Through our program, you will not only learn each aspect that is necessary to provide World Class Service to Cannabis and CBD/hemp businesses, you will also get the "plug and play" tools and workpapers (over 100 of them) to serve them easily on day one, and the unique requirements to keep them compliant.
With all of the opportunity that comes with Cannabis, let’s not forget CBD which is an even bigger market than Cannabis. In some cases, CBD is even more complex even though 280E is not required. The FDA, USDA, and other organizations are going to start cracking down even harder on CBD businesses as more rules are adopted, so our program will also help accounting professionals navigate the compliance complexities as well! Guidance for CBD compliance and accounting are also included in our program.
“I wanted to share a HUGE victory! A new client signed on today for a full Accounting and Finance solution. I am so thankful for this program. My mindset and confidence has improved tremendously since I joined! Thank you, Andrew..!”
Colorado’s Cannabis Accountants
“I am 3/4 done with the program and feel like the investment was one of the BEST I have ever made. The materials, calls and group are phenomenal!”
Erin R., MBA
Alice and Fran LLC
Thank you for referring us to Crystal! After working with her for just a few weeks, it became clear to me that all of our other bookkeepers (we had 4 in 2 years!) had done the bare minimum amount of work and never had our books up-to-date. Crystal identified some errors and I feel much better knowing someone QUALIFIED is looking out for us.
Our Nationally Recognized Cannabis and CBD Accounting program has helped over 800+ accounting professionals get started quickly, and build their accounting practices past six figures in under 90 days. Don't believe us? Check out more reviews and testimonials here.
Check out the latest information and resources on Cannabis accounting.
At this point there aren't any service providers in the US who have served a state-legal Cannabis company; including accountants, bookkeepers, attorneys, marketers, plumbers, realtors, electricians, etc, that have faced any legal repercussions for simply providing service to a state legal Cannabis company (and there are likely hundreds of thousands of service providers out there, and that number is growing quickly). That said, find and follow your state laws, your state accountancy board, and also review the sites below:
Also this link and site provides timely updates around tax and cannabis:
IRS site on 230 and tax advice:
Finally, the best policy is to always do world class work, follow all laws and regulations and terminate any clients immediately that you suspect are breaking the law.
Several things make good accounting valuable to Cannabis and CBD/hemp CEOs:
No, you don’t need to be a CPA to serve in Cannabis. In fact, many CPAs have chosen to not serve in this industry, meaning most Cannabis companies have bookkeepers doing the day to day books. There is a huge need for qualified (meaning educated in Cannabis and CBD/hemp accounting procedures) accountants and bookkeepers to serve this industry.
Our course is designed to be a shortcut into serving the Cannabis and CBD/hemp niches for an accountant or bookkeeper who has a firm (or wants to launch one) without having to figure everything out by trial and error. We’ll outfit you with the proper tools, including:
The stakes are high for cannabis CEOs, and the fate of their business rests in having an accounting team that understands what is necessary in order to keep their business compliant so that they aren't penalized or shut down. Our goal is to provide tools and guidance to accounting professionals so that Cannabis and CBD/hemp businesses are being properly serviced and can thrive.
Really, it comes down to two things.
1) Are you looking to get your first Cannabis or CBD/Hemp accounting or tax client? If so, we have modules that you can jump right into on day one that will guide you through the process of finding and landing your first Cannabis accounting client. No need to finish the education and training module first; dive right into landing your first client on day one, as well!
2) Ready to service your Cannabis and/or CBD/hemp accounting client? Great! We help you understand how to provide world-class service, as well as give you the downloadable tools that you can use immediately on day one to serve these clients. Everything from properly on-boarding your Cannabis/CBD/hemp client, setting up a perpetual data room, month-end tie-outs, day-to-day bookkeeping, etc. This program is meant to be DIY and plug and play, so you can go through the different modules at your own pace. Our hope is that you'll be proficient in providing Cannabis and CBD/hemp accounting services within 90 days, which is totally possible if you invest on average at least an hour a day into learning and implementing the materials.
Yes, you are able to provide services to Cannabis and CBD/Hemp companies remotely. The most important part is following the regulations in the links above, as well as the state laws where the Cannabis company resides as well as your own state laws. Also if you are a CPA or Enrolled Agent or other certification, make sure to check with your State Accountancy board and/or whatever agency regulates any license you have.
There are many varied sub-niches, which can be very complicated to serve effectively. These sub-niches include farming, processing, manufacture, labs, distribution and retail, and many times all of those will fall under the same company. On top of that, there is a lack of Big 4 industry guides or training, no GAAP guidance, and almost no tools or workpapers outside of our program, making it extremely difficult to serve these clients well and maximizing your time! From banking to transportation of goods; from seed to sale; from payroll to paying bills, there are challenges that most businesses do not have to deal with that hinder day-to-day operations. Cannabis and CBD/hemp accounting professionals need to be aware of these challenges and must be able to help their clients navigate and find solutions so that they can properly operate their business.
Larger accounting firms at this point in time are not heavily involved in Cannabis and CBD/hemp, meaning these multi-million dollar operations must find smaller firms that are willing to help them with their accounting.
Accounting in and of itself is a challenge because software is truly lacking and doesn't cater to the specific needs of Cannabis businesses. Quickbooks and other accounting software don’t have a chart of accounts tailored to Cannabis entities for example. Additionally, most set up complex multi-entity structures, use cost and consolidated accounting, and have complex inter-company transactions.
To serve them well, a bookkeeper or accountant needs to understand these industries, Cannabis, CBD/hemp, the state/federal issues, and have good work papers, systems, and tools. In addition, there are even more industry issues such as lack of banking, complex software, state seed to sale tracking, cash management issues, investor reporting, GAAP accounting and inventory management that will affect Cannabis and CBD/hemp business operations.
It turns out this is a very difficult question to answer, most cultivation CEOs have no idea the answer to this, and knowing the answer to this provides better tax deductions, as well as competitive advantage, over most CEOs who don’t know this cost.
Cost of inventory includes raw materials, Work in Process (WIP), and Finished Goods (FG). In cannabis, you start with a raw material which is a seed or a clone, and the cost of this raw material is often $0 (or very little). From there, many clients have a process that is 4-6 months to get this seed to actual sale including growing, replanting, flowering, watering, light issues, harvesting, drying, curing, lab testing, and finally ready for sale.
Over this 180-day period, significant costs get added to this plant including direct and indirect labor, nutrients, soil, water, electricity, security, and much more. And each strain produces a different yield per plant, so each reporting period, you need to know for every plant: % complete, estimated yield, costs to allocate, and how much is in finished goods. Getting this “cost per pound” is a complex issue, and most have no idea how to do it correctly. Our program has a Cannabis and CBD tailored chart of accounts, as well as simple cost accounting work papers that can do this correctly and provide big value to the CEO.
There are several ways to get more information:
Get the full scoop on Cannabis accounting from this comprehensive on-demand webinar. Sign up below, and get access to key information that encompasses all that is needed in order to do Cannabis accounting properly. Whether you're an accounting professional or a Cannabis business owner, you'll learn the ins and outs of Cannabis accounting so that you can better understand how to be complaint in this industry.