Other software I like for my clients
MileIQ - it is the best way to track mileage I have seen and it works on any smart phone - and your accountant will love that you have real documentation
2 Likes
@AlphaOmegaAccounting A good accountant is a vital part of running any business, but especially in the cannabis industry due to all the potential fatal mistakes on several different fronts. Have you thought about joining forces with other @ServiceProviders to form a syndicate for a more holistic approach for your cannabis clients?
3 Likes
@AlphaOmegaAccounting how do you think your accounting services will evolve once we are federally legal in the USA?
1 Like
I like greenbit - really do not like Metrx but it is required so any software like greenbit that talks to metrix is worth looking at. WebJoint is good too - especially for those doing delivery services
3 Likes
Hi Cyndi. Our Cannabis Captive program guides our clients to open their own insurance company, but is the only way to take the deduction on the premium b/c of the 280e clause by opening a management company and taking the deduction there? Do you have any other suggestions?
2 Likes
Actually I work with several @ServiceProviders - I find that having a business coach is essential but if the business coach and the accountant don’t work together you will never get your goals off the ground.
I like to host strategy meetings with my clients where their other service providers also attend - if you don’t know the goal of a business owner you can’t help them reach it
3 Likes
Hi Cyndi,
My accountant has always earned his money by saving me money with either deduction I missed or business strategies he helped me implement. What areas in this industry do you think are being overlooked that would save us money?
2 Likes
once it’s federally legal I feel the accountants role will be even more important - right now everyone is focusing on 280E and don’t utilize their accountant for other big issues such as controlling growth, anaylizing when to bring on new employees, anaylizing strains to see which one is more profitable. the right accountant can also help with things like cost control, tracking key indicators and even tracking non-financial indicators that effect the bottom line
4 Likes
@AlphaOmegaAccounting how do you differentiate your practice from other accounting firms entering the cannabis industry?
1 Like
Under Accounting, does this include Credit Card Processing, direct sales or online sales?
How many suppliers are getting stuck with High Risk Rates?
Cheers, Lou
2 Likes
actually a management company can be a problem if the only reason for it is is insurance. there has to be a non-tax reason for doing it before the IRS will accept that it is separate.
As far as 280E with insurance it really depends on the type of insurance. things such as health insurance and workman’s comp insurance can be 280E compliant for that portion of the employees wages that are compliant. For instance someone who does trim work and also works in the dispensary would have their time split between compliant and non-compliant activities so the insurance covering them would also be split by the same percentages.
3 Likes
Heyy Cyndi @AlphaOmegaAccounting ! Thanks for hosting this AMA!!
I have two questions…
-
Do you use IRC 263A to allocate mixed service costs?
-
With your over two decades of experience, have you successfully defended any clients in the face of an IRS audit?
2 Likes
I have a very specific question.
I grow, bulk wholesale, no marketing or really any sales expense aside from my bulk packaging.
Is this packaging part of the cost of good sold?
It is required to be packaged with a tracking tag before transfer. I have assumed this is a COGS, but would like your input.
2 Likes
I think the biggest thing overlooked to save on taxes is employees and security - often I see both of these just thrown into overhead instead of scrutinizing the hours to see where they are actually working.
Another area is the R&D credits. there are so many new processes and procedures coming out each week that have to be tested and proven to work - research and development is overlooked because it is assumed it can not be taken however there is also state tax credits associated with this and there are circumstances where even the federal credits would apply.
4 Likes
Hi Cyndi,
Great to meet you! Does anyone happenknow of any good systems that can encompass SAP buisiness practices and production? We have had small discussions with two companies, one that is SAP B1 and one that is not. What is a fair price for this kind of functionality and what should a small company expect to pay for implementation?
Cheers!
3 Likes
I think what differentiates me is that I started out in accounting doing multi-state taxes. That means that I’m familiar with most states tax issues which is where this industry is headed. I love the strategy part of the business.
I find that if you don’t have a strategy, a budget to support that strategy and the goal you are trying to reach it is like going on a road trip with no idea where you want to end up. This industry is still focused on getting it legal but have no plan for building and thriving in their own business.
2 Likes
I’m not sure what you mean by if credit cards and such are under accounting. I’m a CPA and if it effects my clients bottom line then it is something I need to be looking at.
Credit card processing and banks are hitting this industry with outrageous fees. The suppliers normally are not effected at all.
Direct sales and on-line sales really depend on what you are selling - if it is HEMP based CBD they are very successful on-line. Cannabis on-line is much riskier but can be done.
I find that 90% of the service providers out there are taking their normal services and adding $$$ to the amount for those in the cannabis industry - it reminds me of when star wars came out and every toy on the market had a star wars sticker on it even if it was a car that never appeared in the shows. I have seen so many that use to do things like build greenhouses now increase their rates just for the cannabis industry.
That drives me crazy - for that reason I charge the same rates no matter what industry my client is in - and yes I work in other industries too mostly with investors
2 Likes
@AlphaOmegaAccounting I have a client who is offering custom built seed-to-sale software for a vertically integrated cannabusiness. I’m surprisingly having problems finding a company to give away a $500K job for free. Feel free to extend our offer to one of your clients. I’m sure it will make them very happy! All the details here:
1 Like
@AlphaOmegaAccounting proper banking and credit card processing options are rough under this current administration. Have you found any quality banking institutions and/or processing solutions that have worked for you or your clients?
1 Like
Daniel
Ive known and worked with a company from San Jose, CA for 15 years that is positioned
to help you with your request.
contact me
Doug - Greenmark Consulting
3 Likes