#AccountingShowLA: The Insanity of Cannabis Accounting & Tax
At the 2019 Accounting & Finance Show L.A., we met up with cannabis accounting experts, Bruce and Thomas Andersen to learn some of the ins and outs of accounting for cannabis, and talk about the insanity that is California's assorted layers of cannabis tax, licensing requirements for cannabis businesses, from cultivation to retail, not to mention the state's nonsensical tax-reporting requirements. Tom and Bruce also share some advice for would-be cannabis accountants and bookkeepers on the best approach to learning all things cannabis and providing exceptional service in this niche segment.
Sponsor
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.
Subscribe
Subscribe
- Apple Podcasts: http://cloudacctpod.link/ApplePodcasts
- Spotify: http://cloudacctpod.link/Spotify
- Google Play: http://cloudacctpod.link/GooglePlay
- Stitcher: http://cloudacctpod.link/Stitcher
- Overcast: http://cloudacctpod.link/Overcast
