<img height="1" width="1" style="display:none" src="https://www.facebook.com/tr?id=157958514840961&amp;ev=PageView&amp;noscript=1">

Blog

March 04 2020

Cannabis Excise Tax Calculation Updates for 2020

As of January, 2020, distributors need to know about the CDTFA's changes to California's cannabis excise tax. 

  • Distributors will need to pay the excise tax more frequently, and the basis that they calculate the cannabis excise tax on could be lowered, but the markup on that basis has...
[Read more...]

Filed Under: California, Taxes, Accounting

February 26 2020

Cannabis Industry Chart of Accounts

This index of the financial accounts in the general ledger saves time and stress when tax season rolls around.

  • A COA can generate better, more accurate reporting on your cannabis business performance to help you grow. 
  • Transactions are broken into five main categories: assets,...
[Read more...]

Filed Under: Taxes, Finance, Accounting

February 12 2020

4 Important KPIs for Cannabis Dispensaries

These four key performance indicators are vital to keeping track of your operation's growth and success. 

  • Dispensaries that just look at sales will miss bigger picture indicators of their business's health. 
  • Other KPIs you should track are normalized sales, average gross margin, labor...
[Read more...]

Filed Under: Finance, Operations, Accounting

February 05 2020

Embezzlement: How to Spot the Warning Signs in Your Cannabis Company

Recognize signs of fraud and embezzlement at your cannabis operation before it becomes a bigger problem.

  • One way to spot embezzlement is if cash logs do not reconcile correctly against daily POS reports.
  • If you start receiving notices that you're late on tax payments, that could also...
[Read more...]

Filed Under: Finance, Operations, Accounting

January 29 2020

Best Practices for Cannabis Dispensary Cash Handling

Learn how much of your cash is for taxes and for business operations to avoid penalties down the road. 

  • Start with your taxes: calculate what your expected tax bill would be for each month, quarter, and year – that's what you need to have as your savings goal.
  • Make sure your team is...
[Read more...]

Filed Under: Business, Operations, Accounting

January 15 2020

Case Study: Northern California Small Business Assistants, Inc.

The outcome of NCBSA v. CIR shows why it's so important to have a licensed tax expert help with your cannabis business taxes. 

  • NCBSA claimed $1.5 million in ordinary and necessary business expenses on its 2012 tax return. The IRS disallowed the company’s tax deductions under Section...
[Read more...]

Filed Under: Case Studies, Taxes, Accounting

January 08 2020

Case Study: Alternative Health Care Advocates Tax Penalties

AHCA v. Commissioner of Internal Revenue shows that courts are likely to view cannabis management companies as subject to the 280E regulation. 

  • Alternative Health Care Advocates used a cannabis management company to provide HR services. 
  • The court ruled that this management company...
[Read more...]

Filed Under: Case Studies, Taxes, Accounting

December 18 2019

Understanding Cannabis Nursery Businesses

 

Learn whether a cannabis nursery is the right investment for your business. 

  • Nurseries are a great way to diversify your cannabis operation.
  • Nurseries can be quite lucrative if you focus on perfecting a strain. 
  • Cannabis cultivation, excise, and sales taxes apply differently to ...
[Read more...]

Filed Under: Taxes, Business, Finance, Operations

December 11 2019

Optimizing Multi-Unit Cannabis Business Operations

To grow sustainably, evolve your cannabis business by centralizing certain business functions at headquarters to create economies of scale and specialization. 

  • Outsource inventory management, purchasing, accounts receivable and payroll to a central headquarters to take administrative...
[Read more...]

Filed Under: Case Studies, Finance, Operations

December 05 2019

CDTFA Cannabis Excise Tax Update for 2020

Last month, the California Department of Tax and Fee Administration announced an increase in the cannabis excise tax. Starting January 1, 2020, the new markup rate will be 80%, an increase from the original markup of 60%.  

[Read more...]

Filed Under: California, Taxes