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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