The Cannabis Accounting Podcast

While it’s fun to see the rewards that working hard brings us as accountants and bookkeepers, those rewards never seem to come without a bit of struggle. Sometimes, we need a little bit of help. (And that’s okay!) A great way to give yourself the assistance you need is to utilize intuitive software solutions. These streamline processes and maximize efficiencies so you continue to provide higher-le...

Despite the Cannabis industry’s massive growth over the last few years, the sector still isn’t universally fair for everyone. Several factors, including criminalization of marijuana-related charges among minority groups, have created inequalities when it comes to accessing and benefiting from this growing market. To promote the highest standards of social and environmental performance, many Cannab...

New York is one of two states that passed recreational marijuana laws in the last month. With this new legislation comes new opportunities, and new challenges, for accountants who are interested in representing this emerging clientele. On this episode of DOPE CFO, founder Andrew Hunzicker, CPA chats with Rick LaNeve, New York-based CFO and a member of the New York State CPA Cannabis Committee, abo...

Getting started in Cannabis accounting can be overwhelming for accounting professionals who have just started serving Cannabis clients or for those who are still considering the niche. It’s especially difficult when your state has just legalized marijuana and things are still a little bit like the Wild West. Matt Mann, with experience as an internal auditor and corporate controller, was a part of...

Proper cash and company credit card management is essential for clean books, but it can be difficult to organize your clients’ many transactions. The lack of banking services available to Cannabis businesses means the companies’ bills are often paid in cash. Even companies that have access to credit cards do not always have the flexibility and benefits of normal purchasing cards or separate employ...

The increasingly widespread legalization of Cannabis has led to thousands of opportunities for CEOs and consumers around the country, but not all opportunities are created equal. For minority communities, the Cannabis industry can be an unfair and unfavorable marketplace. BIPOC Cannabis business owners and consumers are still privy to the complications that arise from negative drug stigmas and the...

As a cash-based industry, Cannabis is plagued with issues many businesses aren’t, from security issues to struggles with reconciling POS systems. The proper handling of cash can make or break a Cannabis company’s compliance, licensing, and profitability. Cannabis CEOs, executives, managers, and investors are all affected when it comes to cash inconsistencies and miscalculations (so you have a huge...

Few things are more frustrating or stressful for a Cannabis accountant than the prospect of an IRS audit of their clients. Many Cannabis and CBD/hemp companies are being audited for their failure to remain compliant with 280E or because their accounting has not been properly completed in accordance with 471. However, when you understand what the IRS is looking for and how to do accounting correctl...

Properly setting up a Cannabis company for success takes a great deal of skill. As an accounting professional, your ability to successfully navigate the complexities of the Cannabis industry could make or break the fledgling business. An accountant untrained in the industry can easily lead their client down a path of inadequate audit trails and inaccurate books, risking potentially high penalties,...

Bookkeepers interested in helping Cannabis and CBD/hemp companies sometimes have an uphill battle, as they often must prove they are much more valuable than in-house bookkeepers. However, these niche-trained bookkeepers are so necessary, because they offer more than just daily reporting. A Cannabis bookkeeper is a critical player in maintaining compliance and helping their clients move toward prof...

Navigating cleanup can be overwhelming for many Cannabis or CBD/hemp accountants. However, properly taking your client through the cleanup stage will ensure you start out on the right foot, and will set the stage for their future success and compliance. In the experience of our founder and the DOPE CFO network, 90% of the clients you serve will need some degree of cleanup, whether they’re a new st...

Cannabis is complex enough with the usual day-to-day questions and issues accounting professionals run into. When you add clients wanting to lease or buy land into the equation and try to apply 280E, it may feel like any misstep could lead to detonating a litigious minefield. Not understanding how 280E relates to leasing or buying real estate in Cannabis could lead to some explosive penalties and...

Many accountants new to the Cannabis or CBD/hemp space often feel overwhelmed by the prospect of finding clients, getting them on a sales call (or two), then closing. You’re an accountant after all, not a salesperson. However, once you establish an actionable and repeatable system that effectively connects you with a CEO and also hooks them with your value-add pitch, you can begin to confidently l...

Cannabis CEOs must always be ready for an audit. Being in the spotlight in an industry that is still federally illegal means you must conduct all operations with exacting detail, especially accounting. Rumor has it, the IRS and local tax agencies are currently looking to collect millions in what they believe to be unpaid taxes. Yikes. Many CEOs have lost licenses, been fined large sums, and even s...

America’s “Bible Belt” is experiencing a revolution that few saw coming: the acceptance of legal marijuana. Historically a region that prides itself on strict religious and moral standards, states like Louisiana and Mississippi have recently welcomed medicinal marijuana into their economy. Georgia has legalized CBD oil. Alabama even looked at legalizing medicinal Cannabis back in February of 2020,...

If you’re wondering if you have what it takes to be a top-of-the-line, increasingly successful Cannabis accountant...spoiler alert...YOU PROBABLY ALREADY HAVE WHAT IT TAKES. Are you responsive? Consistent? Creative? A go-getter? Are you willing to continue learning and growing? Yes, there are technical elements you need to succeed as a Cannabis accountant. Yes, workpapers, systems and processes, a...

Even if your eyes glaze over when someone mentions legal matters, Cannabis legislation affects your daily life as a Cannabis accounting professional. Cannabis law is constantly changing and legal liabilities are commonplace in this niche, from trademark lawsuits to contesting tax penalties. By understanding the current court rulings and adjusting your accounting systems to reflect up-to-date legis...

Cannabis is a rapidly growing industry, but many accounting professionals put on the brakes when approached by Cannabis companies who are interested in their services. Some accountants avoid Cannabis because of the complexities of tax codes and tight regulations, but most shy away from the industry because they’re worried the federally illegal status will damage their professional reputation. But...

Breaking into Cannabis accounting doesn’t come with an age limit. Even if you’ve been in the same CFO position for several decades, it’s never too late to dive into the Cannabis industry if it calls to you. If you’ve been on the fence about getting started in this quickly growing niche but are worried that you’re too old or have been stuck in the same rut for too long, know that you’re not alone....

Before you can ever set highly valuable services in place for Cannabis clients--even before the cleanup phase--you need a solid onboarding process. And no effective onboarding process is complete without the Prepared By Client (PBC) checklist. You can think of the PBC list like the blueprint for your future relationship with the client and the services you will provide. If a carpenter tried to bui...

Federal legalization of Cannabis will likely change your role as an accountant. Will those changes bolster your success -- or make it harder to get a foothold in the industry? Listen in for our predictions. With the November election just a couple months away, states like Maine, Arizona, and South Dakota are awaiting results on their medicinal and recreational use initiatives. As more states legal...

Do you have cost accounting nailed down for Cannabis accounting? Can you confidently say you know how to track each plant, work in progress statuses, and inventory count to properly allocate costs to COGS? Are you reducing tax liability properly for your clients… or are you unwittingly costing them extra money by taking too few deductions or being the reason they rack up penalties? To be the champ...

The American economy is still shaking off the effects of coronavirus and the recession. If you struggled to keep your accounting clients or were furloughed during the last few months, you never want to worry about losing work again. Never again do you want to be left wondering if you can pay your mortgage or feed your family. You’ve heard from the experts that the best way to boost your revenue is...

Cannabis accounting may be a great niche to dig into, but you may not get too far in your new practice if you don’t know how to land the right clients who can pay you what you’re worth for your services.. When it comes to client acquisition in the Cannabis industry, there are a few tried-and-true methods that make Cannabis CEOs and operators willing to stop trying their hand at DIY accounting inte...

Capital raise is almost always inevitable for Cannabis or hemp/CBD business startups. At some point your company or your client’s company is going to need to raise capital -- and you’re going to need to know how to confidently guide them through the process. Capital may still be tight for startups in 2020, but Cannabis and hemp/CBD businesses may soon have access to new capital options from angel...