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accounting

August 27 2021

Cannabis Cultivation Taxes: Demystifying Form 943

When filing taxes, cannabis cultivators have a major decision to make when faced with the question: “Will you be Filing 940/941 or 943 forms for payroll?” The differences between these forms appear minor, but if the wrong form is checked, there can be significant and lasting consequences....

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Filed Under: Taxes, Accounting, cultivator

August 24 2021

Cannabis Price Risk Management: Part 2 - The Evolving Cannabis Market

Cannabis market participants are increasingly seeking more certainty across all elements of business risk. Price risk management is one of these key elements. In Part 1 of this article, our content partner Cannabis Benchmarks introduced the concepts of market price risk, volatility,...

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Filed Under: Business, Investing, Operations, Accounting, cultivator, Price Risk Management

August 19 2021

Get Your Money Right: Keys to Landing a Cannabis Credit Line

At every level of today’s cannabis industry, accessing the capital necessary to grow your business is one of the most consistently frustrating obstacles operators face. For the big multi-state players, private equity deals often cost you an arm and a leg, and being blocked from listing on...

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Filed Under: Business, Finance, Accounting, Capital

August 02 2021

The Real Reason Federal Lawmakers are Reluctant to Repeal 280E

When congressional lawmakers first conceived the obscure federal tax rules known as 280E in the early 1980s, the goal was to strip drug kingpins and smugglers of ill-gotten proceeds. A particularly brave drug trafficker had attempted to deduct a yacht and firearms purchases from his taxes. 

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Filed Under: Washington, Taxes, Accounting

July 08 2021

How to Prepare to Sell Your Cannabis Business

Preparing to Sell Your Cannabis Business

The $2.1 billion Trulieve-Harvest acquisition is paving the way for a boom of M&A activity in the cannabis industry. 

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Filed Under: Compliance, marketing, Operations, Accounting

June 29 2021

Top Tips: Reporting and Bookkeeping for Cannabis Dispensaries

Reporting and Bookkeeping for Cannabis Dispensaries

In our experience serving 600+ cannabis clients throughout the US, we’ve observed that only 3 out of 10 dispensaries do an adequate job of bookkeeping and reporting.

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Filed Under: Accounting

June 24 2021

8 Benefits of Outsourcing Cannabis CFO Services

Benefits of Outsourcing Cannabis CFO Services

Managing a cannabis company’s finances is an entirely different beast when compared to financial management in any other industry. Cannabis's classification as a federally illegal substance presents complex, unique challenges to business owners...

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Filed Under: Compliance, Business, Accounting

June 21 2021

Filing a Tax Extension for Cannabis Businesses

Explainer: Filing a Tax Extension for Cannabis Businesses

Filing a tax extension for cannabis businesses is something that can be incredibly helpful for business owners and operators. Filing a tax extension gives individuals, owners, operators, partners, and investors the ability to file...

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Filed Under: Accounting

June 14 2021

3 Ways to Lower Dispensary Operating Costs

Case Study: How to Lower Dispensary Operating Costs 

Today, we are going to analyze how we were able to help a recent client almost instantly lower their dispensary operating costs. 

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Filed Under: Accounting

May 21 2021

Economic Impact of Cannabis is Expected to be 5X Greater in 2021

It is no secret that the cannabis industry is growing quickly and strengthening the economies of states and territories with legal adult-use and medical programs. After a banner year in 2020, when the cannabis industry pumped an estimated $17.5 billion into the US economy, an analysis from ...

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Filed Under: California, Taxes, Nevada, Accounting

May 11 2021

5 Ways Cannabis Companies Benefit From Enhanced Controls

The strong control environments utilized by public companies in the cannabis industry provide a powerful blueprint for best practices that private cannabis companies can learn from and build on. These controls can: provide greater accountability within the organization, lower the risk of...

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Filed Under: Compliance, Business, Accounting

May 05 2021

What Cannabis Businesses Can Learn from the Harborside Inc. Case vs. the IRS

In late April, a U.S. appeals court rejected an attempt to end Section 280E of the IRS tax code by California-based cannabis company Harborside Inc.

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Filed Under: News, Compliance, Accounting

February 08 2021

Cannabis Financial Services | Accounting, Tax Prep, Banking, & Financial Reporting

Financial Operations

With our team of CPAs and financial experts that specialize in the cannabis industry, GreenGrowth CPAs is here to ensure that your business is set up for success. We create feedback loops for consistent optimization and compliance for your cannabis company. Maintaining...

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Filed Under: California, Michigan, Washington, Taxes, Oregon, Accounting

January 19 2021

Outsource CFO Services

Managing a cannabis company’s finances is unlike managing those of any other business we have seen before. Since marijuana is federally illegal with no government funding, it is up to the individual company and the state to take the necessary measures to ensure that these businesses are...

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Filed Under: Accounting

September 08 2020

Cannabis CPA vs Local General CPA

As tax extensions are coming due, we wanted to share some ‘insider’ thoughts about choosing a CPA to prepare your cannabis business tax returns.Over the past 45 days, our team has been increasingly getting on calls with cannabis operators that chose to go with a local, generalist CPA firm...

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Filed Under: Compliance, Taxes, Accounting

July 22 2020

How to Take Money Out of Your Cannabis Business

Here's how to draw a salary from your cannabis business – and how it impacts your business and personal taxes. 

  • How you draw a salary – and the taxes – depends on the type of entity you've set up.
  • A C-Corp cannabis venture pays taxes on any income, meaning the entity itself is...
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Filed Under: Finance, Accounting

July 02 2020

Understanding Bad Debts for Cannabis Companies

Learn some strategies for writing off bad debt, as well as how to avoid the risk to begin with. 
  • Bad debt gets recognized as a business expense when an account receivable is no longer collectible.
  • In the cannabis industry, you should never extend credit – it's simply too risky.
  • If you do...
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Filed Under: Finance, Accounting

June 18 2020

Analyze and Optimize Cannabis Cultivation Cost Per Pound

An accurate cost per pound is the basis for setting up a sustainable, profitable cannabis cultivation business. 

  • Improve the value of your cultivation business by keeping detailed SOPs for each employee's job description. 
  • Implement strong tracking systems to see the trajectory of...
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Filed Under: Finance, Accounting

June 08 2020

Financial Forecasting for Cannabis Businesses

A financial forecast is a roadmap for growing your business sustainably – here's how to build one. 

  • A financial forecast helps you to track your progress month to month and know how your business is performing compared to the plan.
  • Track variables such as seasonality, tourism, weather...
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Filed Under: Finance, Operations, Accounting

May 01 2020

Break-Even Point for a Cannabis Dispensary

 

The faster your cannabis operation hits break-even, the sooner you become profitable – here's how. 

  • Start keeping track your sales, number of transactions, weather, events in the areas, specific promotions, and headcount for the day and even big news headlines for every day.
  • Examine...
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Filed Under: Business, Finance, Operations, Accounting

April 24 2020

Role of a Receiver and the Benefits of Receivership

This post is part 2 in a series about economic receivership. Catch up on the first part, “Receivership for Cannabis Businesses” for more information. 

  • Cannabis businesses can't file for bankruptcy; receivership is an alternative solution.
  • A "receiver" is someone appointed by the court...
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Filed Under: Compliance, Business, Finance, Accounting

March 26 2020

Economic Update for Cannabis Businesses

Small business owners around the country are in need of help as more and more states ask their citizens to stay at home. Cannabis is no exception.

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Filed Under: News, Taxes, Business, Operations, Accounting

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...
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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,...
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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...
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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...
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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...
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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...
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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...
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Filed Under: Case Studies, Taxes, Accounting

October 18 2019

Best Practices for Managing Your Cash on Hand

Learn what expenses to prioritize and ways to optimize your cash flow to stay in business. 

  • Pay your cannabis taxes first, and rent and utilities expenses thereafter. 
  • Know your inventory restock cycle to plan ahead for unforeseen expenses. 
  • Build a rainy day fund with any extra cash...
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Filed Under: Finance, Accounting

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