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The cost of improper accounting can shut down a business

Cannabis accounting is different and nuanced. 

The cost of not knowing the state and federal taxes, cannabis compliance, and best practices in handling an all-cash business could lead to fines, penalties, and cash flow issues down the road. 


 

Cannabis businesses must have a solid accounting strategy and need to focus on managing cash flow, inventory, all while staying competitive in a highly regulated market. 

Approach cannabis accounting with the right framework

Get the tools to level up your cannabis expertise and confidently get up to speed on the nuances of working in cannabis and how to navigate cannabis accounting, regulation, and compliance.

  • A deep overview of cannabis taxes and best practices to minimizing the tax burden

  • Best Practices in Financial Procedures for a Cannabis Business

  • Feel prepared for operating in an all cash environment

  • Feel confident about the IRS requirements for cannabis businesses

  • Inventory Controls and Best Practices

  • Best practices in onboarding cannabis clients

Finance, Compliance, and Industry Expertise

+5 Years of Operating in Regulated Cannabis

I made the jump from corporate to cannabis in 2015. As a PwC alumnus, my experience with working in the agriculture, manufacturing, retail, entertainment, and technology industries has been beneficial in cannabis. My tenure in cannabis has led to winning competitive cannabis applications, successful capital raises for cannabis business owners, tax-saving strategies, and best in class business processes. I have experience lobbying on both a local, state and federal level. I'm a published author, speak on best practices in cannabis business around the world, and love talking about cannabis compliance and accounting!

There's a lot to starting a business in THC

There's a lot to learn when it comes to navigating the industry, we're here to help you get started.



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Take the guesswork out of cannabis accounting, 280E, and accounting compliance

An on-demand, online course to help you upskill your cannabis accounting and compliance expertise

  1. 1

    • Before we begin...

    • Course Downloads

    • The Cannabis Industry Needs you!

    • List Your Services in the Accounting Directory

    • Check out the Community Forum
  2. 2

    • Profit and Loss Finance Terms

    • Different Methods of Accounting

    • What is inventory?

    • Freight in and Freight Out

    • How the IRS Calculates COGS

    • Section 471 of the IRS Code

    • Unit of Measure in Inventory + Cheat Sheet
  3. 3

    • The impact of federally illegality

    • How the Cannabis Ecosystem Works

    • Cannabis Startup and Operating Costs

    • Cannabis Regulation

    • Insurance Requirements

    • Record Requirements

    • State and Local Cannabis Taxes

    • Cannabis Violations and It's impact on Accounting

  4. 4

    • IRC 280E

    • How 280E Applies to a cannabis business

    • The History of IRC 280E- >Jeffery Edmundson

    • Tax Case Findings Summary

    • The Case for COGS Deductions and Separate Trades or Businesses -> Californians Helping to Alleviate Medical Problems (CHAMP)

    • The importance of Receipts and 75.6% COGS --> Olive vs. Commissioner

    • Cannabis Losses (Beck vs. Commissioner)

    • Management Companies (Alternative Health Care Advocates versus Commissioner)

    • The Lesson of For Profit vs. Not for Profit -> Canna Care vs. Commissioner

    • Cannabis Excise Taxes

    • Section 471 vs. Section 263A
  5. 5

    • Different Legal Entities

    • Owner Salary and IRC 280e

    • IRC 280E Strategies
  6. 6

    • Cost Allocations Case Example - Mary

    • 280e Allocations Download

    • Employees and Independent Contractors

    • Audit Proof your Allocations
  7. 7

    • Importance of Managing Inventory

    • Inventory Management Downloads

    • Seed to Sale Tracking Requirements

    • Inventory Counts and Procedures

    • Inventory Reconciliations

    • Receiving Inventory

    • Purchasing Policy
  8. 8

    • Cash Management

    • Cash Management Downloads

    • Bank Secrecy Act and FINCEN

    • Cannabis and Banking...

    • Cash Transactions - IRS Compliance

    • Cash Logs and Accounts

    • Restricted Access of Cash

    • Designate a Cash Custodian

    • Segregation of Duties in Cash

    • Perform Cash Counts

    • Implementing Budgeting Controls to Manage Cash

  9. 9

    • Accounting Systems

    • How to Create a Strategic Chart of Accounts

    • Cannabis Business Chart of Accounts
  10. 10

    • Paying Cannabis State Taxes

    • Ownership & Equity

    • Defining your role as a Cannabis Accountant

    • Before you go....

Unlock these templates and Checklists

Get up to speed with these workpapers, process control questions, and checklists

  • IRC 280e Calculation Tools and Checklists

  • Cash Control Checklist

  • Inventory Control Checklist

  • Onboarding a New Cannabis Business Checklist

  • Questions to ask when assessing the purchases process in the business

  • Questions to ask when assessing the accounting process in the business

  • Questions to ask when assessing the inventory process in the business

  • Questions to ask when assessing the cash process in the business

  • Period End Checklist

Other Bonuses

When you subscribe to the course, you'll have these additional features

  • Instant Downloads

    You'll immediately unlock templates, tools, and training.

  • Interactive Training

    Get access to video training on tough areas of cannabis accounting.

  • Group Forum

    Get access to a private channel to get your questions asked and answered

Still on the fence?

If you're thinking about being an accountant in cannabis, check out this guide.

Get the Accountants Guide to Working in Cannabis

    We won't send you spam. Unsubscribe at any time.

    Is Cannabis Finance Bootcamp for you?

    • Are you the finance or compliance responsible at a cannabis business? Or plan to be?

      This program is for you if you will be responsible for cannabis or hemp accounting and compliance. If you're a bookkeeper, accountant, compliance consultant, or employee in operations and accounting, it's time to take action!

    • Are you getting stuck and need a roadmap?

      Imagine having a finance and compliance roadmap, templates, and checklists, delivered directly to you. You’ll have access to hundreds of hours spent consulting business owners, creating business solutions for businesses in cannabis, manufacturing, agriculture, and retail delivered directly to you.

    • Do you want a community of support and lifetime access?

      When you enroll in the training, you will have instant and LIFETIME access to the training and course modules. You'll have access to participate in our online community group and ask questions on our group forum.

    What are students are saying

    I have a plan

    Diana, CPA

    ”I came in basically clueless and left with a great plan! Since that day I've taught my team everything you advised and we have been trying to enforce a whole new inventory system at our LA location. And it has been great!

    “It was very informative.”

    Val, Head of HR

    Great Bundle of Information

    Micah, Operations Manager

    The packet we took home was very helpful. The inventory and product section of the course was helpful.

    Unlock the tools and strategies to build a profitable and compliant cannabis business

    Get started now