{"id":55534,"date":"2018-07-20t18:03:36","date_gmt":"2018-07-20t22:03:36","guid":{"rendered":"https:\/\/48e130086c.nxcli.net\/?p=55534"},"modified":"2018-10-30t16:43:36","modified_gmt":"2018-10-30t20:43:36","slug":"marcum-llp-moving-forward-in-cannabis-with-confidence","status":"publish","type":"post","link":"\/\/www.g005e.com\/2018\/07\/20\/marcum-llp-moving-forward-in-cannabis-with-confidence\/","title":{"rendered":"marcum llp: moving forward in cannabis with confidence"},"content":{"rendered":"
\"portrait<\/a>
rosen<\/figcaption><\/figure>\n

the firm is open about its new services group.<\/strong><\/p>\n

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

legal recreational cannabis is coming to new jersey \u2013 as soon as this year. and when it does, hundreds of millions of dollars in potential tax revenues will start flowing to the state beginning in 2020.<\/p>\n

more on cannabiz:<\/b> mark guiley oversees new cannabis niche<\/a> | cannabis trends: what cpas need to know for 2018 and beyond<\/a> | podcast: rich wortmann pioneers in pennsylvania<\/a> | five secrets to launching your own cannabis accounting firm<\/a> | corporate to cannabis: laura durham of kind accounting<\/a> | ben condon on launching a cannabis cpa firm: \u2018the opportunity presented itself\u2019<\/a> | cpa simone cimiluca-radzins launches ‘linkedin of cannabis’<\/a> | jim marty: building a national cpa firm for the cannabis industry<\/a> | jordan cornelius: guiding cannabiz clients through minefields<\/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. <\/span><\/strong>log in here<\/a> or 2022世界杯足球排名 today<\/a>.<\/span><\/p><\/blockquote>\n

marcum llp is ready.
\n
\na top 100 accounting and advisory firm, with 23 offices nationwide (as well as several overseas), marcum has been working with cannabusiness clients for several years, watching the ramp up to legalization and preparing internally by building out its cannabis services group practice.<\/p>\n

\u201ceven though we are a big firm, we are very entrepreneurial,\u201d said gary b. rosen, an advisory partner based in new york and active in the cannabis group. \u201cwe tend to do a lot of things other firms might shy away from. we found that in cannabis, a lot of cpas are shying away because they don\u2019t know the uniqueness of the industry.\u201d<\/p>\n

rosen said a number of people in the firm \u2013 across a variety of specialties \u2013 are involved with clients because the industry has many moving parts. for instance, a number of companies are going public in canada, involving the firm\u2019s sec practice. a partner in california heads up the tax practice. the firm has a large salt practice with team members dedicated to keeping up with the ever-changing regulatory changes. and as for rosen, he helps cannabis businesses get set up and launch, forecast projections, structure entities and raise capital. their clients run the gamut \u2013 everyone from growers to dispensaries and those companies providing ancillary services.<\/p>\n

\u201cone of my clients invests in technology, putting their dollars into capital resources that the people running the dispensaries and growing facilities need,\u201d said rosen. \u201cso, they are going into a multitude of different technologies that will yield better crops and help clients grow.\u201d<\/p>\n

though the cannabis industry is relatively new and emerging, marcum has been in the space for a while, said rosen, pointing to a number of organizations across the country that have helped set the foundation. in the case of new jersey, rosen serves as treasurer to the new jersey cannabusiness association, which acts as a liaison between the state legislature and the cannabis community. he also points to the new york state society of cpas and new jersey society of cpas both having cannabis committees, in an effort to develop guidelines, policies and procedures for cpas working with cannabis clients.<\/p>\n

\u201cboth societies realize this is here to stay,\u201d rosen said about forming cannabis-specific committees. \u201cif i was a betting man, i\u2019d bet that the cpa societies in each of the states that have it as medical or recreational are going to start committees because there is going to be a need to keep practitioners up to speed on the changes that occur.\u201d<\/p>\n

marcum has been open about working with cannabis clients \u2013 the firm has information on its website and has presented at informational seminars for those interested in entering the industry in new jersey. at one event, there were more than 800 people who paid to attend, listening to industry professionals talk about trends, licensing, regulations and how to stay in compliance.<\/p>\n

\u201cthree people, who were actually cpas, stood up and asked me questions about getting into the space,\u201d rosen said.<\/p>\n

he recognizes however, that in order to move forward in new jersey, the state legislature has to pass the recreational law. this is anticipated to happen soon, perhaps by the end of 2018.<\/p>\n

\u201conce they do that, it\u2019s going to be a boost to the industry,\u201d rosen said. \u201conce it becomes recreational, you are going to see a huge influx of tax revenue to the state of new jersey.\u201d that said, details about licenses in each area or local ordinances have yet to be worked out.<\/p>\n

still, his clients have work to do in order to get ready. rosen said that aside from filling out applications, it\u2019s critical cannabusiness owners understand what the financial needs are to run a business. for many of the firm\u2019s clients, this is their second business and they are using money from their first to fund this next venture.<\/p>\n

\u201cthey believe this is the next area that will be a boom and they want to be part of it,\u201d he said. \u201cthey have to work very diligently because there are going to be a limited number of licenses.\u201d<\/p>\n

the other challenges his clients face are standard issues for the industry \u2013 ensuring there is capital to fund the venture; managing cash flow because, for example, as clients build out their grow facilities, there is going to be ramp-up time to go from seedling to cultivation to sale to third parties; and of course, dealing with irs code 280e and what rosen calls the \u201cvery unusual deductibility structure.\u201d<\/p>\n

rosen said marcum is strict about who it takes on as clients, doing a thorough background check and vetting carefully.<\/p>\n

\u201cwe have to do this with our eyes wide open,\u201d he said. \u201cwe have to make sure the people we are involved with are properly vetted, are right with the project and there are no grenades that can go off during the process.\u201d<\/p>\n

he added, \u201ccpas have to adhere to the professional standards that they adhere to with their other clients. they cannot go into this industry halfheartedly. there are a lot of pitfalls and if you don\u2019t know what you are doing it could come back and bite both the cpa and the client.\u201d<\/p>\n