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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