The Accounting Podcast

#AccountingShowLA: The Insanity of Cannabis Accounting & Tax


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Sep 18 2019 31 mins  
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Accounting & Finance Show LA: http://cloudaccountingpodcast.promo/accountingshowla

Episode Notes

  • 01:17 – The Cloud Accounting Podcast is gonna smoke Marijuana Daily in the iTunes charts, after this episode!
  • 01:44 – A blunt history – how Bruce and Tom got started in the cannabis-accounting realm
  • 02:50 – Bruce speaks to some of the challenges cannabis businesses face, when it comes to accounting
  • 03:37 – The tables have turned when it comes to the types of clients served in a cannabis accounting firm
  • 04:28 – How can accountants use cloud technology to help cannabis clients?
  • 04:46 – Come hail or high water, Tom prefers hosted (cloud) solutions, such as QuickBooks Online and QuickBooks Enterprise to keep client data safe.
  • 06:00 – One way to store your cannabis currency – PotCoin? | Vox
  • 06:16 – Bruce explains some of the many layers involved with reporting for cannabis clients.
  • 08:26 – Since every move you make, as a cannabis business, needs to be tracked, the most efficient way to do so is with specialized seed-to-sale or track-and-trace software
  • 09:18 – How to get your Metrc on … | SoftwareConnect
  • 11:10 – Is there a QuickBooks Cannabis Edition out there?
  • 11:16 – A few of the front runners in the seed-to-sale software space: Proteus 420, BioTrackTHC, and LeafLogix
  • 12:38 – There are separate licensing requirements for each phase of the cannabis industry, from cultivation to distribution
  • 13:19 – Cannabis taxation - harshing your accounting and bookkeeping mellow, from the municipal to the state level.
  • 14:46 – The full operation - seed to sale - has the most tax benefit for local agencies in California.
  • 15:33 – If you want to set up shop in L.A, the city's Department of Cannabis Regulation Pre-app instructions and zoning tool will give you some direction
  • 16:02 – One retail roadblock could get in the way - LA DCR only has another 150 retail licenses to offer, all with a preference toward social equity ...
  • 16:27 – Another huge downside in the LA cannabis market is fierce and seemingly unfettered, or at least unlicensed, competition
  • 17:07 – Is California's black-market cannabis winning the race?
  • 17:32 – California takes a nearly 50-percent cut for assorted cannabis-related taxes, hanging cannabis businesses out to dry
  • 19:10 – The CDTFA is more than happy to guide you through all the ways they'll take a hit off your revenues as a cannabis business owner
  • 19:43 – Bruce breaks down the taxation and reporting process - from distribution to retail
  • 21:06 – There's zero method to California's cannabis tax reporting madness, and no official guidance, either
  • 22:22 – Cannabis users take note! If you're using for medicinal purposes, be sure to bring proof when you visit a retail cannabis store
  • 25:23 – Accountants, do your cannabis clients a favor - learn, understand, and offer the tax piece, too! | Cannabis Industry Journal
  • 26:14 -- Get some help - with the constant changes in the cannabis industry, with laws, regulations, taxes, and requirements, you need qualified, competent support for your cannabis accounting
  • 28:32 – Cannabis accounting and bookkeeping skills are probably not as portable as other types.
  • 30:14 – Who needs Starbucks, when there are pot brownies to be had?

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Bruce Andersen, CPA:

Thomas Andersen:

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