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...
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...
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...
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...
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...
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...
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!...
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.
Let’s look at...
As the cannabis space matures, it's becoming increasingly populated with service providers from a diverse range of ancillary industries. Among them, accountants and bookkeepers have become some of the most sought-after specialists in the field. Running a cannabis business are entirely distinct from any other sector, and most cannabis CEOs lack the skill set to circumvent the countless risks involved. For this reason, a majority of cannabis companies require guidance from experienced and...
With most big accounting firms still avoiding the cannabis industry, small accounting firms are undoubtedly in the right place at the right time.
Equipped with a specialized skill set and sophisticated financial knowledge, CPA’s and other accounting professionals have the opportunity to enter a burgeoning market—projected to reach an economic impact of $70 billion in the U.S. by 2021.
In this article, Andrew shares a few key steps that you can take right away to get your foot in...
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