5 Workaround Tools to Manage Essential (But Frustrating) Seed to Sale Compliance

5 Key Workaround Tools for Navigating Seed to Sale Challenges

Cannabis accounting is a complex, ever-changing niche due to the plant’s federally illegal status (regulations and rules vary from state to state). One key (but extremely complicated) aspect of Cannabis accounting is seed to sale tracking and compliance. Cannabis business owners can easily flub these complex accounting and compliance processes without the help of a trained Cannabis accountant on board. Even worse, inaccurately inputting seed to sale data can lead to significant penalties or even loss of license.

Because the seed to sale processes are complex, difficult to understand, involve several sub niches, and are a veritable maze for Cannabis CEOs and accountants, it takes some skill and understanding to fulfill state and federal accounting and tax requirements. As an accountant, you are in a powerful position to add significant value to a client’s company by expertly navigating the seed to sale process....

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How to Build a 100% Remote Cannabis or CBD Accounting Firm: How One Accountant Studied, Succeeded, and Acquired a Recession-Proof Back-Up Plan

Now that most of the nation is holed up under shelter-in-place guidelines, Cannabis and CBD are considered essential (in most states) and sales have been increasing, While other companies are on lock down and laying off their employees, there is truly no time like the present to build your own 100% remote Cannabis or CBD accounting firm. 

But how do you even get started? What is the actual process to transfer from a full-time job at a corporate accounting firm to running your own remote accounting practice in a fast-pace niche like Cannabis? 

One DOPE CFO student, Tammy L., quickly built her own remote Cannabis accounting firm with hard work and guidance from the DOPE CFO program a little over a year ago. Even when Tammy was laid off a few weeks ago due to coronavirus shutdowns, she still had her remote business and a 6-figure client to help her thrive during these uncertain times. 

Tammy made it happen -- all while still working a full time job! This is her...

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Finding Insurance for Cannabis Companies: What You Need to Know

As with any other major industry, access to quality insurance coverage is of the utmost importance for Cannabis companies. Most big-name insurance carriers, however, won’t come near the Cannabis industry due to the plant’s classification as a Schedule 1 drug, which also makes it federally illegal. With so many vertical moving parts, Cannabis companies need insurance for equipment, employee benefits, E&O, and various other aspects of their operations.

There are, however, plenty of insurance companies that will write policies for Cannabis businesses, and it appears that there isn’t a whole lot that they won’t cover (for a price, of course). 

The first step in getting the coverage that companies need is finding an insurance agent that is knowledgeable in the Cannabis industry’s needs and requirements, and having them tailor a policy package that suits your business’ vertical structure. By consulting with an experienced agent, the Cannabis...

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How to Win in Cannabis in 2019

cannabis accounting Jul 26, 2019

Learn How to Maximize Your Efforts

My goal with this blog is to explain how to win in cannabis in 2019 as an accounting professional. We get countless emails from people that want to try to do it the hard way, and that’s fine. But if you really want to maximize your efforts, you’re going to want to pay attention. As you may know, we provide cannabis accounting training to professionals all over the United States. This knowledge is unique in the cannabis industry right now, and is a way to add REAL VALUE (listen up all of you not knowing how to express value for fees to CEOS) to Cannabis CEOs, and add 10x to your fees to those that listen.

In most of the feedback that we receive, and among many of our students, I still see that most accounting professionals are “missing the boat” around 280e. The goal is simply to do it right, pay the tax, and not “beat” it (that is the losing strategy).

The advice attached is CONTRARY to what many...

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Do’s and Dont's of Cannabis Cost of Goods Sold Accounting and IRC 471-11

Cannabis cost accounting tools

To be able to do effective cost accounting for your clients you will need some very important tools, if you plan to take advantage of the maximum tax benefit. For starters, a very good cannabis Chart of Accounts that is  QBB/Xero/ready (specific for grow, processing, edibles, and retail operations). You will also need a client inventory template to accumulate monthly/quarterly counts, weights, estimated yields and estimated percent complete, and finally cost accounting templates to perform the calculations. 

We have all of this in our program, which was developed after 2-3 years of working with other CPAs, cannabis farm personnel, cannabis tax attorneys, and bookkeepers.   

Diving in to Cost Accounting for 280E

  1. To effectively do cost accounting you will need to allocate some of the P&L costs out of expenses and into Inventory/COGS. Use the Trial Balance at any ending reporting period to determine which costs to allocate, and...
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How to Successfully Invest in Cannabis Startups: A Message to Cannabis Investors

We here at DOPE CFO have been speaking at national conferences and to the press, CEOs, and accountants for quite sometime about how to do things correctly in cannabis accounting. But, we’ve been getting questions from investors, as well: from the billionaires (yes plural) who call us asking how to “fix” a bad investment with poor or no corporate governance, to the local millionaire wondering why he’s getting hit with a big cannabis tax bill, but no distribution from the company, to the average “Joe” on the street who wants to know how to win big in cannabis. We’re here to help. Here are some quick thoughts if you are dead-set on investing in this new industry.

First of all, I get it that right now you can make good money…even on the companies with horrible operations (ie without dropping names like “Med Men”). I also get it that you can make insane money on better run companies, even though they are spending (and losing)...

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The Worth of World-Class Cannabis Accounting to CEOs

Determining the value that you provide your accounting clients.

 The idea of value can be a tricky and very misunderstood topic for accounting professionals and CEOs alike. Determining the services that you want to offer and what to charge for those services is the key to building a successful, competitive practice that will create the most ideal scenario for accounting professionals: to work remotely and under less stress, command higher fees, and have more freedom to work as you see fit. The key to understanding your value is to first understand the difference that your services will make in your clients’ business, and how to communicate it to a CEO so that they understand the level of service that you provide and how it will be a catalyst for their business growth. You have to realize your potential value first; otherwise, you may run into trouble getting and retaining clients - or, in some cases, trouble being compensated fairly for the value that you are providing.

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The Top 5 Pitfalls of Cannabis CEOs (and their Accountants) are Still Making

Cannabis companies are being shut down, fined, and handed down punishments at an alarming rate.

Have you seen the news lately? Cannabis CEO’s are getting in big, BIG trouble, and it’s only going to get worse. The cards are stacked against cannabis businesses in this current political climate. Even with that being the case, some businesses are able to figure out how to not only be profitable, but to do so without getting into hot water with the feds or local authorities.  

Others are cutting corners, cheating the system, or simply not following the rules. While they may get away with it in the short term, there’s the simple fact the crackdowns are only going to get worse and more frequent.

For those that want to run a legit cannabis business, avoid crazy fines, and really lead the pack in operating a cannabis business during this time of growth and opportunity, listen up.

We’re going to discuss 5 common, avoidable mistakes that are getting folks into...

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Dope CFO featured in TD Ameritrade's Market Watch, 'Pot Stocks, ETFs, Top News And Data From The Cannabis Industry This Week

Dope CFO Andrew Hunzicker and Naomi Granger have been featured in TD Ameritrade's Market Watch, 'Pot Stocks, ETFs, Top News And Data From The Cannabis Industry This Week'. Check out how we are educating business and equipping them with qualified CPA's to better serve their marijuana business.

Read more HERE.

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Dope CFO featured in TD Ameritrade's Market Watch, 'Pot Stocks, ETFs, Top News And Data From The Cannabis Industry This Week'.

Dope CFO Andrew Hunzicker and Naomi Granger have been featured in TD Ameritrade's Market Watch, 'Pot Stocks, ETFs, Top News And Data From The Cannabis Industry This Week'. Check out how we are educating business and equipping them with qualified CPA's to better serve their marijuana business.

Read more HERE.

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