The Cannabis Accounting Podcast

Two licensed dispensaries were raided last month by the California Highway Patrol, with the California Department of Tax and Fee Administration on standby, to collect overdue state tax payments. The officers walked out with a couple of six-inch-high stacks of cash, but there is more to this story than a modern-day western holdup.  In our latest episode of the Cannabis Accounting Podcast, Andr...

Understanding the myths that business owners believe about Cannabis accounting can give you a leg up on understanding their perspective and may better form how you pitch your value to them when you do reach out. For every myth they believe, you can counter with a well-researched answer, illuminating the consequences of misunderstanding tax codes and regulations in their industry and leading them t...

As accountants and bookkeepers enter the Cannabis industry, many find themselves unsure of how to quote their fees correctly. Many businesses need a thorough cleanup, monthly reporting systems set up, and constant compliance monitoring, but how can you possibly come up with a number that will fairly compensate you with so many unknowns? Fortunately, we’re going to share some of the tips and techni...

As Cannabis business owners and investors grow their companies and expand their operations, some will inevitably be blindsided by personal tax liabilities that aren’t protected by their entity structure. The corporate entity’s structure determines the tax implications for owners, investors, and other shareholders. It also lays the foundation of how they get paid out in the future (at exit, yearly...

After having helped several of our DOPE CFO members build 6-figure accounting firms over the last few years, we know what works. In this episode, Andrew Hunzicker, CPA shares what works for our members, and the 5 Keys to Building a Successful Cannabis Accounting Firm. He goes over: 🌿 The importance of picking the correct niche (must be RECESSION PROOF) 🌿 The exact “Toolbox” you’ll need 🌿 A simp...

Legally reducing tax liabilities for Cannabis companies hinges upon compliance with one vastly misunderstood tax code: IRC 471. Cannabis companies are not allowed any deductions or credits, and courts penalize them for messy records. According to 280E, any business associated with the "trafficking" of Schedule 1 substances may not deduct ordinary business expenses (like rent, vehicle expenses, mor...

Let’s face it; Cannabis business owners are incredibly busy keeping up with updates within the industry, making it almost impossible for them to keep up with their finances. This is what makes Cannabis accounting essential to keep their business successful. But a lot more goes into working for this niche than you might think. In this episode, Andrew sits down with Tina Begay, who owns Redtail Acco...

It’s no secret that accounting professionals are intimidated by the Cannabis industry. Between finding information about the niche and landing clients, many shy away from the industry which leaves CEOs in need of experienced professionals. Of course, accounting fundamentals are crucial but one expertise that many Cannabis and CBD/hemp accountants are missing is the ability to market themselves. Wh...

Experienced bookkeepers and accountants are essential in keeping cannabis companies penalty-free. The IRS and state tax agencies are ramping up their audits on Cannabis companies this year, and the industry needs trained bookkeepers and accountants more than ever to accurately clean up Cannabis books, adhere to GAAP guidance, and understand the critical workarounds necessary to navigate the tricky...

Accounting professionals… it’s time for you to charge what you're worth! There are a million reasons why accounting professionals aren’t charging enough for their services. One of the most daunting questions that accounting professionals have when they first start their own firm or add a new service is, “how much should I charge?” More often than not, unaware Cannabis accounting professionals will...

It’s a new year and the perfect time to finally take that leap into the exciting world of Cannabis. Getting into a new industry is scary and you might not know where to start or what to expect. Some of you might have just stumbled on this podcast and the title piqued your curiosity, some of you have been listening along and are figuring out if this is the niche you want to be in, and others are ju...

It’s tough starting a business in an industry with so much red tape and unclear guidelines. For Cannabis business owners, there are numerous restrictions and they might start feeling hopeless and lonely. Groups like the Arizona Dispensaries Association (ADA) are a community of leaders providing information, guidance and are the legislative and regulatory voice for Arizona’s Canna-prenuer.  Th...

Social Equity.  What does it mean in the Cannabis Industry? Andrew sits down with Shaleen Title (Cannabis Attorney and Speaker) and Nina Parks (Cannabis Activist) to talk about what social equity truly means in the Cannabis industry. It’s not new knowledge that the war on drugs, especially marijuana, has greatly impacted Black, Latinx, Native American, and other minority communities.  Wh...

As more states legalize Cannabis, the IRS is cracking down on tax audits. Recently, the IRS has announced they are specifically focusing on S-Corp and running a fine-toothed comb through CEOs’ books. Cannabis companies are a bigger target now than ever. The only way to make sure your clients are prepared for audits during tax season is by understanding the ins and outs of updated Cannabis tax laws...

Audits. That’s a word that makes most Cannabis accountants and their clients shake in their shoes. But the audit process doesn’t have to be so anxiety-producing. You just have to know what to expect. Our recent podcast features Tony Frischknecht, a Cannabis company owner and investor of more than 17 years. Tony got his start in Colorado, the first state to legalize Cannabis. Tune in as he sits dow...

In the Cannabis industry, it’s not a matter of if a Cannabis company will undergo an audit but when. As an accountant, it’s your job to understand the fundamentals of accounting and tax laws and regulations to help your clients have the best possible chance to survive the critical eye of the IRS. Fortunately, the more you know and the better you can provide world-class, niche-specific accounting t...

Most accountants are so busy they barely have time to live their lives. If you run a remote accounting or bookkeeping practice, one reason you started that endeavor may have been because you wanted to strike a better work-life balance. Now, you have so much busywork to do, including filing reports, data entry, and filling out tax returns, that you are still working nearly 80 hours a week -- withou...

Most accounting professionals squirm away from marketing. However, at the end of the day, the only way accountants and bookkeepers can land great clients is to level up their marketing chops in simple, strategic ways. In Episode 76 of our podcast, bookkeeper Rosanna St. John talks with DOPE CFO founder Andrew Hunzicker, CPA about social media marketing approach and her client-magnet techniques. By...

Many Cannabis and CBD/hemp accountants don’t know how to market themselves, making it harder for them to get out there and land new clients. At DOPE CFO, one highly effective marketing tip we share with our students is to “participate.” “Participate” is one part of a critical VIP formula we teach as the “secret sauce” required to really shine as an accountant in Cannabis or hemp/CBD. (The “V” stan...

One of the biggest roadblocks new Cannabis accountants face doesn’t have to do much with accounting. It’s client acquisition. Even after you have mastered every tax code, cost accounting process, and niche-specific requirement you still might face the overwhelming prospect of landing your first client. However, finding and signing on your first client doesn’t have to be anxiety-producing if you kn...

As an accountant helping Cannabis companies, you have a big responsibility you may not even be aware of yet: helping set up entity structures. If you’re not aware of the importance of choosing the right entity structure, let’s pan quickly to the MedMen case. This is a cautionary tale of how a great product and company ended in a dramatic litigious battle due to an accounting and legal team that be...

Do you know how much it costs to produce and sell a pound of pot, from the moment a seed is planted to when the delivery truck ships it to its final destination? If you don’t know this answer, you may not understand inventory cost accounting. Cost accounting is essential when serving Cannabis clients because it’s required to help companies stay compliant with IRC 471. If you don’t know how to allo...

With the legalization of recreational Cannabis happening quickly for many states, and the influx of new businesses that have followed, it’s no surprise that investors far and wide have wanted to get a piece of these startup companies. Investors will supply much-needed early capital and strategic advice in exchange for a sizable return on their investment later on. Accountants play a vital role in...

Audits. There is no word accountants dread more. Audits can happen to any company in any industry, but with Cannabis companies being so closely watched by the IRS and other government entities, it’s less of wondering IF a company will be audited, but WHEN. Even though an audit may not happen for years after a mistake is made, knowing you’re armed with the knowledge and skills to successfully navig...

Cannabis is still a Schedule 1 drug. That means The IRS is keeping an extra close eye on all Cannabis companies and affiliates. For some clients, their very licenses may be on the line -- because haven’t received proper accounting guidance. If you have the finely sharpened skills required to keep both Cannabis and CBD clients compliant, you could be in high-demand for years to come. With the right...