As states across our country continue to legalize Cannabis every year, CPAs, bookkeepers, and accounting professionals are steadily encountering new clients who want to serve the Cannabis industry. The AICPA (American Institute of Certified Public Accountants} has now recognized the need for providing guidance and support to accountants who may support the quickly growing Cannabis market.
Calling on industry leaders, the AICPA held its first 2-day Cannabis education conference, the AICPA and CIMA Cannabis Conference, on November 8 and 9, 2021 in Las Vegas, Nevada. Among the Cannabis accounting and tax leaders that presented at this conference are DOPE CFO Founder Andrew Hunzicker, CPA, along with DOPE CFO students Paula Collins, Molly Mayfield, and Carlos Vela.
Read on for highlights of the DOPE CFO member’s presentations.
The AICPA and CIMA Cannabis Conference 2021...
Due to the fact that Cannabis is classified as a Schedule I drug (in spite of the fact that the majority of states in this country have voted to legalize Cannabis in some form or fashion), ALL Cannabis companies must comply with 280E. There’s little grey area here, but if you’re in the business of harvesting, producing, manufacturing, or selling Cannabis in any way, shape, or form, your business is not able to legally take deductions.
Properly quoting accounting fees is complicated in any industry, but establishing a pricing policy for the wily Cannabis and hemp/CBD niches can be especially challenging and overwhelming.
If you find it hard, or even scary, to price your Cannabis and hemp/CBD accounting services without undercutting your value, you are not alone.
Many accountants struggle with raising their fees beyond low hourly rates. Learning how to package your services, create clear offers to reflect your value, and develop a system for charging appropriately for cleanup, onboarding, and ongoing work will enable you to confidently set your price and find clients who will happily pay it.
Here are six easy steps you can take to make sure you're pricing your Cannabis accounting services correctly.
Stop charging for your hours and start charging for the value of your work. This is a complicated numbers game with ever-changing rules and regulations....
Proper cost accounting is essential for all Cannabis and hemp verticals, but it gets particularly tricky when you're dealing with cultivation. From the moment a seed is planted in the ground to the harvest of the crop, high-level accounting procedures are mandatory to keep cultivation companies compliant.
Cannabis growers tend to be uninformed as to the importance of proper accounting. Often focusing more on the science and passion of growing, they have little patience for numbers. Because the growers take such pride in their operations (and need to be educated on the processes and regulations required to keep those operations compliant with the IRS), you may have to work harder to prove the necessity of sound accounting practices.
Cannabis and hemp both require different approaches to monthly accounting and year-end taxes. Cannabis is federally illegal, although more than 30 states have licensed businesses to sell legal medicinal and/or recreational marijuana. Hemp has...