The Accounting Podcast

#AccountingShowLA: The Insanity of Cannabis Accounting & Tax

Sep 18, 2019

31:26

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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?

Connect with Our Guests

Bruce Andersen, CPA:

Websites - https://andersencpa.com/ and https://cannabiscpa.tax/
LinkedIn - https://www.linkedin.com/in/bruce-andersen-8788a59/

Thomas Andersen:

Twitter - @TheOfficialTomA
LinkedIn - linkedin.com/in/tomandersencbd

Get in Touch

Thanks for listening and for the great reviews! We appreciate you! Follow and tweet @BlakeTOliver and @DavidLeary. Find us on Facebook and, if you like what you hear, please do us a favor and write a review on iTunes, or Podchaser. Interested in sponsoring the Cloud Accounting Podcast? For details, read the prospectus.

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