When Dope CFO first started it was to service actual cannabis clients such as dispensaries, grows, and edible makers, who were trying to understand and navigate the complex financials of the business. Here's our founders advice to those thinking about breaking into the often lucrative profession of cannabis accounting.
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Marijuana is legal in several U.S. states, however, it’s still not legal federally. This case causes obstacles for many banks and marijuana-related businesses (MRBs).
President Obama’s administration allowed banks and legally established MRBs to do business, as long as banks complied with the extensive guidelines, which monitored the MRBs’ commercial activities and filed quarterly any suspicious activity reports. But on Jan. 4 Attorney General Jeff Sessions rescind these policies, and uncertainty spread among businesses and banks alike.
By canceling these policies, Sessions is simply giving federal attorneys the option to prosecute in their states. According to the Washington Post, several of the 13 U.S. attorneys in the eight states where recreational pot is legal have said they will only prosecute if a cannabis business has ties to crime or violence”.
What does this mean for banks and MRB’s? With banks and MRBs on shaky footing, Andrew...
Naomi Granger, Co-Founder of DOPE CFO, is featured in a recent episode of The Maria + Jane: Women in Cannabis Business podcast to share about the knowledge and practices needed to thrive as an accountant in the cannabis world.
Maria & Jane is dedicated to inspiring and informing women in (or interested in) the cannabis business landscape. Their weekly newsletter and podcast, provides news stories, deep insights, and interviews. Listeners hear perspectives from founders, growers, advocates and more to help them navigate the fast-paced world of cannabis business.
In the episode, Naomi shares her passion about the rapidly growing cannabis industry and work with CEOs to help them maximize their cash flow, minimize their tax burden and never worry when the auditors come around. She also provides insight to:
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.
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.
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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.
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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.
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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 the door.
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Naomi Granger, CPA, MBA, took a leap of faith and it paid off. And it’s still paying off.
With more than 12 years of public accounting experience, working her way up the ranks to senior management at PwC, Granger wanted more. She wanted flexibility and ownership of her time and schedule. So, she started researching how to start a remote accounting practice.
The key? Honing in on one niche. And not just any niche. An industry she could really sink her teeth into.
She considered working with professional athletes or in real estate, but eventually settled on cannabis. Then she found Andrew Hunzicker late last summer.
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Make sure you tune in to DOPE CFO's Andrew Hunzicker feature on the Periodic Effects: Cannabis Business Podcast! Visit http://www.periodiceffects.com/episodes/e048 to listen.