{"id":54721,"date":"2018-07-11t10:55:34","date_gmt":"2018-07-11t14:55:34","guid":{"rendered":"https:\/\/48e130086c.nxcli.net\/?p=54721"},"modified":"2018-07-31t12:24:45","modified_gmt":"2018-07-31t16:24:45","slug":"cannabis-trends-what-cpas-need-to-know-for-2018-and-beyond","status":"publish","type":"post","link":"\/\/www.g005e.com\/2018\/07\/11\/cannabis-trends-what-cpas-need-to-know-for-2018-and-beyond\/","title":{"rendered":"cannabis trends: what cpas need to know for 2018 and beyond"},"content":{"rendered":"

booming new niche where opportunity meets complexity.<\/strong><\/p>\n

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walsh<\/figcaption><\/figure>\n

by liz gold
\ncannabizcpa.pro<\/a><\/em><\/p>\n

cannabis startup costs are on the rise, as cultivators, vertically integrated retailers and laboratories are spending upwards of $1 million just to launch, making the sector as potentially treacherous as it is potentially lucrative for many tax and accounting firms on the leading edge of the booming new industry.<\/p>\n

more at 卡塔尔世界杯常规比赛时间’ cannabizcpa.pro<\/a>:\u00a0<\/strong>\u00a0tom achor: at the intersection of cannabis accounting and technology<\/a>\u00a0 |\u00a0\u00a0<\/span>jessica velazquez on cannabis accounting and activism\u00a0\u00a0<\/a>|\u00a0\u00a0<\/span>podcast: rich wortmann pioneers cannabis in pennsylvania\u00a0\u00a0<\/a>|\u00a0\u00a0<\/span>podcast: john repetti and mitzi hollenbeck of citrin cooperman\u00a0\u00a0<\/a>|\u00a0\u00a0<\/span>podcast: jim marty and cory parnell go national\u00a0\u00a0<\/a>|\u00a0\u00a0<\/span>podcast: drew dearlove talks about the cannabis business\u00a0 \u00a0\u00a0<\/a>|\u00a0\u00a0<\/span>4 best things about being a \u2018dope\u2019 accountant\u00a0 <\/a>|\u00a0\u00a0<\/span>5 biggest mistakes cannabis ceos make\u00a0\u00a0<\/a>|\u00a0\u00a0<\/span>five secrets to launching your own cannabis accounting firm\u00a0\u00a0<\/a>|\u00a0\u00a0<\/span>five reasons accountants should serve cannabis clients\u00a0 |\u00a0\u00a0<\/a>derek davis keeps california cannabis clients informed<\/a><\/p>\n

and more on the cannabis niche at 卡塔尔世界杯常规比赛时间 cannabizcpa.pro<\/a><\/h3>\n

\"goprocpa.com\"exclusively for pro members.\u00a0<\/span><\/strong>log in here<\/a>\u00a0or\u00a02022世界杯足球排名 today<\/a><\/span><\/p><\/blockquote>\n

the budding industry is confounded by differing regulatory models emerging nationally for both medical marijuana and adult use programs. but it\u2019s clear \u2013 those cannabusinesses that are succeeding have help. more accountants are moving into the cannabis space, helping clients develop a sound financial infrastructure, a regular accounting and bookkeeping process and a solid understanding of irs tax code 280e.<\/p>\n

that said, there is so much up in the air.<\/p>\n

according to business insider, nine states and washington d.c. have legalized marijuana for recreational use. medical marijuana is legal in another 29 states.<\/p>\n

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bachtell<\/figcaption><\/figure>\n

individual states are still determining the types of consumption and products allowed; if there should be a license cap (or not); to include diversity or equity clauses in ordinances; and what medical conditions are covered. the overall consensus is \u2013 will states keep experimenting with their ordinances and regulatory bodies or will a blueprint develop?<\/p>\n

not surprisingly, given the competitive market, consolidation is on the rise, as is an increase in chain and national brands. for example, in colorado, five companies run 70 locations or 14 percent of the market, according to chris walsh, founding editor and vice president of marijuana business daily.<\/p>\n

in washington, 20 percent of retailers operate more than one store and dozens of infused brands, dispensaries, and recreational cannabis stores have expanded to multiple states.<\/p>\n

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carp<\/figcaption><\/figure>\n

recreational sales are on the rise and as a result, legal states are facing a decrease in wholesale prices. colorado has seen more than 50 percent decrease in their wholesale prices, while oregon is ranging between 40-50 percent. oregon also is dealing with an abundance of flower and heavy competition and that\u2019s a result of having no caps on license applications. that is changing, however, as state regulators will discontinue processing new adult-use licenses effective june 15.<\/p>\n

it\u2019s become survival of the fittest.<\/p>\n

stay out of trouble<\/strong><\/p>\n

\u201dfirst, stay out of the irs auditor office, says robert carp, of carp law offices in newton, mass. carp says if you are cannabis business, you will likely see the irs in the first 48 months of your launch. his big tip? documentation.<\/p>\n

\u201cdocument every scrap of paper and at the end of the month print out every statement,\u201d carp says. \u201cif you are paying by money orders or check, take a photo or copy it.\u201d the first year is always the toughest, carp says, adding that tax court case memo 2017-211 is required reading for cannabusinesses. he calls it is the best roadmap for anyone looking to avoid issues with the irs.<\/p>\n

carp says cannabusinesses which get $10,000 or more in cash need to remember to fill out form 8300.\u00a0\u201ca lot of people say i\u2019ll catch up on it later,\u201d he said, \u201cthey can take all the money that day plus penalties and interest. don\u2019t play. fill it out.\u201d if there are no business deductions on the first page of the tax return, the irs will immediately flag you as a cannabis company.\u00a0\u00a0cultivators don\u2019t typically have any issues because everything they do is categorized as cost of goods sold, which are allowed business expenses.<\/p>\n

for dispensaries, it\u2019s a different story. \u201cyou have to have companies,\u201d carp says. \u201ca management company and a dispensary company.\u201d<\/p>\n

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kadens<\/strong><\/figcaption><\/figure>\n

the future is green<\/strong><\/p>\n

\u201cyou can\u2019t scale a company unless your foundation is rock solid,\u201d says charlie bachtell, of cresco labs. \u201cif you don\u2019t have standard operating procedures and your culture tightened up, you won\u2019t be able to scale, and those wobbly wheels will fall off.\u201d<\/p>\n

pete kadens, of green thumb industries, says business owners need to have a clear intention and know why they are in the industry. \u201cthis requires a lot of capital and it can be hard to raise,\u201d says kadens, who had a background in highly regulated industries before entering into the cannabis business. \u201cfor every $30 million we lock in, only $10 million shows up in our bank account.\u201d<\/p>\n

adds bachtell, \u201cwe are in a lot of developing markets. we want to build a good business with the expectation the market will catch up. we want to maintain cash positive and cash neutral, we don\u2019t want to be burning cash. [and] our cultural health is the number one kpi at the organizational level.\u201d<\/p>\n

both are optimistic about the future of the industry and talked about how \u201ccannabis now wins elections,\u201d kadens says. \u201cif banks can lend you money in 2018 or 2019, functionally that makes us all legal.\u201d<\/p>\n

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hadar<\/strong><\/strong><\/figcaption><\/figure>\n

branding is everything<\/strong><\/p>\n

in a saturated market like oregon, it\u2019s necessary to differentiate not only your shop but your brand, according to aviv hadar, co-founder of oregrown, in bend, ore.\u00a0hadar recommends including targeting people from all age ranges into your dispensary; event sponsorship; turning customers into repeat customers and acquiring customers that already have a go-to shop.<\/p>\n

oregrown positions itself a lifestyle brand \u2013 with outdoor sports like skiing, surfing, snowboarding in focus and cannabis use is secondary.\u00a0\u201cyou don\u2019t want to pinpoint who can come into your store,\u201d hadar says. \u201ctry to be elegant and blend into your community.\u201d\u00a0you also won\u2019t see any green crosses or marijuana leaves outside their dispensaries. aside from hosting large community events \u2013 again, that are not focused on cannabis per se \u2013 oregrown has strong relationships with elected officials and even has an individual focused on government relations.<\/p>\n

hadar says while social media is important, don\u2019t rely on it to make sales since accounts have a way of disappearing due to platform restrictions.\u00a0 instead, focus on the content that can be controlled \u2013 that lives on your website and blog.\u00a0\u201cauthenticity is the most important thing you can portray to your customers,\u201d hadar says. \u201cyou have to be authentic. we\u2019re selling what oregon is to people. cannabis is secondary to that.<\/p>\n

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