Could California's Pot Industry Hit the Same Wall as Oregon?

Oregon has experienced a price spiral following the legalization of recreational cannabis in 2014. California, despite its population of over 39 million people and many tourists, may face the same problem. Oversupply is the primary market condition that has driven prices in Oregon.  

 

However,  the scenario of a California cannabis price spiral is unlikely. Now there is a push for federal laws to fully legalize cannabis and enable the interstate trade to fulfill demand across state lines. The basic economics of supply and demand – with cities and counties restricting the sale of cannabis – provide an optimistic outlook for entrepreneurs.


There are many other factors that impact cannabis markets that are changing constantly. To read more about these factors, with some additional insight from Dope CFO’s Andrew, Hunzicker,  read “Could California’s Pot Industry Hit The Same Wall As Oregon?” from The Business Journal.

Continue Reading...

Cannabis Owner Gets 7-Months in Prison & Pays $263k Restitutions to the IRS | Cannabliss Court Case

As cannabis accounting professionals, we get a number of inquiries from cannabis businesses that insist that they can cut corners and tip-toe around the rules.

Here’s the thing… CANNABIS IS STILL ILLEGAL.

The first federal sentencing of a legal marijuana business owner for tax crimes is set to take place on November 1st. Partial owner of Cannabliss Dispensary in Eugene OR, Matthew Price has been sentenced to federal prison and $263K in restitution by the IRS.

No matter how many people advised him not to, Mr. Price was caught for failing to report nearly $1M dollars in company income when he commingled the money with his personal expenses. Buying sports cars, Rolex watches, vacations, and even homes were just some of his 'business' purchases.

As an accounting professional, YOU are the expert. It's important that you help your clients understand the importance of proper accounting in this industry and the repercussions of negligence. The problem is that most of the time...

Continue Reading...

A Bookkeepers Guide to Cannabis Accounting

Cannabis companies are highly regulated highly complex organizations. These businesses need not only a higher level accountant and a tax professional, but they also need a bookkeeper to manage all of the day-to-day financial transactions that come with operating a cash-based business.

This webinar is not just for bookkeepers, as it is important for anyone that is on the financial team for a cannabis company to understand the roles and to be clear on everyone’s responsibilities. It is essential that Cannabis businesses have a team of financial experts including bookkeepers, tax preparers, and high-level accountants all working together to ensure all of their financial transactions are captured, recorded and reported properly. Otherwise, cannabis companies can be subject to fines and penalties, which include inaccurate record keeping. (see: Altermeds Case)

In this informative webinar, we provide a high-level overview of some of the most important tasks that a bookkeeper should be...

Continue Reading...

Cannabis Sales Booming In A State That 'Knows How To Regulate Vice'

Nevada experienced a tax windfall last fiscal year, exceeding reported expectations by $265 million in state tax revenue for recreational marijuana sales. And with these sales come an increased look at Nevada and how they are regulating this new industry. In the Forbes article "Cannabis Sales Booming In A State That 'Knows How To Regulate Vice'" they ask Dope CFOs Naomi Granger to weigh in:

“Accurate accounting helps cannabis companies minimize their tax burden and reduce the risk of incurring heavy fees and penalties. Mistakes can result in companies losing their licenses and being forced to shut down, so stakes are high,” said Granger.

Our training opportunities and online community are here to teach you and partner with you in navigating the issues brought forward in Forbes article. Contact us to learn more.

Read more HERE

Continue Reading...

Everything You Wanted to Know About Cannabis Accounting but were Afraid to Ask

Because Cannabis production involves four verticals: farming, chemical manufacturing, food production, and retails the accounting for business owners can become very complex without an experienced accountant knowledgeable in this unique industry - who is not only up to date on the day-to-day bookkeeping needs but also keeps up with the local, state and federal financial regulations which can often appear to contradict or at least confound each other.

The most recent issue of CPAFocus published by Oklahoma Society of CPAs, featured Dope CFO’s Andrew Hunzicker and asked him some of the most common questions asked by accountants entering the Cannabis Industry.

If you want to learn what it takes to be an expert in cannabis accounting, feel free to reach out! We’re happy to help.

Read More HERE

Continue Reading...

How to Hire and Train an Accountant for your Cannabis Company

Finding a financial expert with the experience and expertise of the Cannabis Industry is one of the most important decisions you will make for your business.  Marijuana Business Magazine, asks Dope CFO's Naomi Granger, with over 12 years in the accounting field, her advice for finding the right financial expert.

“Cost accounting is the biggest piece. You’ll be paying a lot in taxes if that’s not done right.” Dope CFO's Naomi Granger

If you want to learn what it takes to be an expert in cannabis accounting, feel free to reach out! We’re happy to help.

Read More HERE

Continue Reading...

There’s Too Much Marijuana in Oregon

business oregon politics Aug 31, 2018

Marijuana prices are reaching historic-lows in Oregon.

The average price of a gram of marijuana has dropped 50%  in Oregon, going from $14 in 2015 to only $7 in 2017-2018.  Oregon’s U.S. Attorney Billy Williams voiced his frustration over the matter in a recent statement he released.

“In my view, and frankly in the view of those in the industry that I’ve heard from, it’s a failing of the state for not stepping back and taking a look at where this industry is at following legalization,” said Williams in an interview with the AP.

“What is often lost in this discussion is the link between marijuana and serious, interstate criminal activity,” Williams added. “Overproduction is rampant and the illegal transport of product out of state — a violation of both state and federal law — continues unchecked. My ask continues to be for transparency, responsible regulation, adequate funding, and a willingness to work together....

Continue Reading...

COGS and Navigating 280E for Cannabis and Their Various Entities

accounting webinars Aug 24, 2018

We get a number of inquiries from accountants and cannabis CEOs alike who are unsure and unaware of how to navigate their accounting challenges.

 280E dictates what cannabis companies (or any company that sells… what are classified as drugs), can and cannot deduct as expenses. While many are aware of 280E few are familiar with cannabis COGS and the various rules for different entities.

In this webinar we touch on 280E and 471 and how these different tax codes affect  dispensaries, grows, and extracts.

In terms of COGS, we preview some of the tools that we use to determine the cost of growing different strands over time for our clients.

 ...and more!

 Catch the replay HERE

Continue Reading...

Is It Legal to Provide Accounting Services for Cannabis Businesses?

There is a thriving need for complex and accurate accounting in the cannabis industry.

While it is already legal to sell in 30 states, cannabis is still considered a Schedule I Controlled Substance under federal law. Despite how someone may personally feel on the subject, legal cannabis is a booming business segment that has a sizable need for proper accounting practices.

But is it legal? Would the risk that comes with the territory be worth putting your business at risk?

Let’s look at some interesting statistics first:

  • Cannabis sales are growing at an incredibly fast rate, expecting to generate over $10.8 billion in sales in 2019, an incredible increase from the $2.7 billion from 2014. (Source: ArcView Market Research)
  • If Cannabis is Federally legalized by 2020, revenues are expected to reach $35 billion - three times more than the National Football League (Source: Greenwave Advisors)
  • The largest group of cannabis buyers in the world will be in North America, estimated to go...
Continue Reading...

3 Financial Mistakes Your Cannabis Business Can't Afford to Make

The industry is largely void of qualified financial professionals such as CPAs and bookkeepers, who can help Cannabis companies adhere to stringent regulations while mitigating the high risk of fines and penalties. In this article from Green Entrepreneur, Andrew Hunzicker mentions a few of the common financial mistakes cannabis businesses really can’t afford to make.

If your business or your clients are making these mistakes in their business and need help, feel free to reach out! We’re happy to help.

Read More HERE

Continue Reading...
1 2 3 4
Close

50% Complete

Two Step

Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.