Proper cash and company credit card management is essential for clean books, but it can be difficult to organize your clients’ many transactions.

The lack of banking services available to Cannabis businesses means the companies’ bills are often paid in cash. Even companies that have access to credit cards do not always have the flexibility and benefits of normal purchasing cards or separate employee accounts.

Because of this, some employees within a company will share one company credit card, or an employee will make purchases with a coworker’s account. Limited transparency regarding who made each cash or credit card purchase is a security risk, wastes valuable time, and could lead to accounting errors -- which can hinder operations and compromise compliance.

On this episode of the DOPE CFO podcast, your host Andrew Hunzicker, CPA will offer “5 Ways to Handle Petty Cash Transactions in the Cannabis Industry,” including:

💳 Build an expense limit and approval system: require purchase orders/approval on charges over a set amount (we’ll help you determine what that figure should be based on the size of your client’s company and the number of transactions).

💳 Select a dependable employee to manage petty cash/company card expenses: designate one person to monitor, track, and record the purchases, who has NO access to the accounting system or bank records (we’ll explain how consistent and detailed monitoring of transactions can ensure the appropriate use of funds).

💳 Count cash daily: physically count cash and review credit card purchases each day, and reconcile all expenses to actual receipts (we’ll cover the importance of separating responsibilities, so there are checks and balances across personnel to guarantee compliance).

💳 Establish petty cash vouchers: if employees are using company cards or spending company cash, set up a receipt system that requires detailed descriptions of each and every purchase (we’ll discuss how to tie out this documentation in your permanent audit trail, so you avoid potential accounting errors).

Listen in today to learn how best to monitor and report cash and credit card transactions, so your clients maintain up-to-date and accurate financials.

Want more great tips and insider advice on the Cannabis and CBD/hemp accounting niches? For more info on the DOPE CFO program, text DOPECFO to 345345 for our free Cannabis Accounting Guide. For more great tips and soundbites on Cannabis accounting and bookkeeping, make sure you subscribe today to our podcast.

The increasingly widespread legalization of Cannabis has led to thousands of opportunities for CEOs and consumers around the country, but not all opportunities are created equal. For minority communities, the Cannabis industry can be an unfair and unfavorable marketplace.

BIPOC Cannabis business owners and consumers are still privy to the complications that arise from negative drug stigmas and the “war on drugs” dialogue, creating segregation issues in an industry that should be a great equalizer. Allies and minorities working in Cannabis realize this imbalance, and have taken steps to establish social equity in this industry.

On this week’s episode, we discuss the current state of Cannabis and its effects on minorities. Join DOPE CFO founder Andrew Hunzicker, CPA and Carlos Vela, a Cannabis accountant who helps Cannabis owners apply for social equity, as they highlight what we can do to elevate minorities in this growing industry.

Andrew and Carlos will offer insights and suggestions, including:

🌱 What social equity is and why it’s essential to establish in Cannabis: we’ll discuss how the “evil drug” stigma of Cannabis was particularly directed at BIPOC communities over the last few decades, along with disproportionate arrests for Cannabis among minority communities (and why reform and social equity is required now to establish balance in the industry)

🌱 The need to draw business away from big companies and make room for the “little guy”: now that legalization is spreading quickly across the nation, big companies are able to swoop in and take over the industry, leaving small businesses - particularly in minority communities - unable to claim their share of the green rush (making social equity programs even more essential to let everyone have a chance)

🌱 Actions you can take as an accounting professional and ally: from learning how to help your clients apply for social equity to spending the time to listen to every client and address their individual needs, you can take steps to help create social equity in this industry (we’ll give you some tips to get started if you are  passionate about doing your part)

Inclusivity and equality begin with us. Listen in today to hear how we can make the Cannabis industry more accessible and profitable for all.

Want more great tips and insider advice on the Cannabis and CBD/hemp accounting niches?  For more info on the DOPE CFO program, text DOPECFO to 345345 for our free Cannabis Accounting Guide. For more great tips and soundbites on Cannabis accounting and bookkeeping, make sure you subscribe today to our podcast.

As a cash-based industry, Cannabis is plagued with issues many businesses aren’t, from security issues to struggles with reconciling POS systems. The proper handling of cash can make or break a Cannabis company’s compliance, licensing, and profitability.

Cannabis CEOs, executives, managers, and investors are all affected when it comes to cash inconsistencies and miscalculations (so you have a huge responsibility as a Cannabis accounting professional). It is imperative that pristine books are maintained at all times. Cash handling systems must be implemented that monitor where cash is kept, where transactions are processed, and where inventory is held.

Join DOPE CFO founder Andrew Hunzicker, CPA on this week’s episode to learn his top tips to navigate the many problems inherent in a cash-only industry.

Tips Andrew will cover include:

✅Essential written internal controls and accounting policies and procedures: while properly writing down internal controls and accounting policies and procedures is necessary for all accounting cycles, it’s especially necessary for handling cash in Cannabis (which can help manage deposits, make payments, and reconcile with the POS system)

✅Importance of regimented cash counts: ensure all cash counts are made by shift with double counts, including supervisor recounts and controls (helping to prevent cash skimming and reconcile bank statements and sales)

✅Implementation of on-site safes: every Cannabis company should have on-site safes that are not accessible to any employees (those who take cash for transactions should not handle cash counts and deposits, keeping cash controls honest and accurate)

✅Breakdown of Form 8300: any time a Cannabis company receives $10,000 or more in cash in a single transaction or across multiple related transactions, it has to file an IRS tax form 8300 (Cannabis businesses who neglect Form 8300 are red flags for the IRS and abandoning due diligence could get your client in hot water)

Help your cash-based clients remain compliant and profitable with these necessary actions! Listen in today.

Want more great tips and insider advice on the Cannabis and CBD/hemp accounting niches?  For more info on the DOPE CFO program, text DOPECFO to 345345 for our free Cannabis Accounting Guide. For more great tips and soundbites on Cannabis accounting and bookkeeping, make sure you subscribe today to our podcast.

Few things are more frustrating or stressful for a Cannabis accountant than the prospect of an IRS audit of their clients. Many Cannabis and CBD/hemp companies are being audited for their failure to remain compliant with 280E or because their accounting has not been properly completed in accordance with 471.

However, when you understand what the IRS is looking for and how to do accounting correctly for state and federal taxes, the burden of compliance seems less foreboding.

On this episode, Andrew Hunzicker, CPA is joined by Desarie Anderson, a Cannabis accountant with extensive IRS experience as both an auditor and an enrolled agent. Desarie will share with you the challenges many Cannabis accountants face when trying to get their clients compliant -- and what the IRS is on the watch for.

A few topics she will discuss include:

✅ Importance of prioritizing tax compliance: providing world-class service to your client is all about setting your client up for success so they can make the best financial decisions (but the heart of this service begins with getting their books together so you can meet stringent tax code regulations and avoid damaging penalties)

✅ Everything an accountant needs to know about preparing for state tax and IRS compliance: from knowing your skill and comfort level to setting up a quarterly tax system, we break down five essential tips for staying stay IRS compliant (and keeping the IRS from breathing down your neck)

✅ What not to do when helping clients with taxes: although everything you do is ultimately related to tax compliance, it’s easy to run into pitfalls, such as not outsourcing when you’re in over your head or not understanding depths of tax compliance on a state and local level (we’ll cover the main issues to look out for so you can avoid getting yourself backed into a corner)

✅ Importance of continual learning: the best way you can become highly competent in compliance is through constantly studying and learning (a process that never ends as long as you want to provide immense value to your clients)

Tune in today to learn the ins and outs of tax compliance that will help you offer world-class service to keep your clients profitable and audit-ready.

Want more great tips and insider advice on the Cannabis and CBD/hemp accounting niches? For more info on the DOPE CFO program, text DOPECFO to 345345 for our free Cannabis Accounting Guide. For more great tips and soundbites on Cannabis accounting and bookkeeping, make sure you subscribe today to our podcast.

Properly setting up a Cannabis company for success takes a great deal of skill. As an accounting professional, your ability to successfully navigate the complexities of the Cannabis industry could make or break the fledgling business.

An accountant untrained in the industry can easily lead their client down a path of inadequate audit trails and inaccurate books, risking potentially high penalties, loss of license, or even jail time.

On the other hand, a specialized Cannabis accountant can confidently lead a budding Cannabis company into compliance from the very beginning, assisting with proper cleanup, building a permanent audit trail, and preventing the potential for fraud from the very beginning.

Pat Reed, an accountant in Arizona, has a particular knack for creating solid foundations for Cannabis startups. Her background in preventing fraud and embezzlement adds an extra layer of protection to the startups she serves. She joins Andrew Hunzicker, CPA to share her valuable experiences and insights into helping startups successfully launch their businesses on this week’s DOPE CFO podcast episode, “Accounting for Cannabis Startups 101: From Outreach to Fraud Prevention with Pat Reed.”

Listen in as she discusses:

✅ Fraud in the Cannabis industry: fraud has the potential to permeate every aspect of Cannabis from cash skimming to investment scams (Pat leverages her experience with fraud prevention to lay out the steps you can take to keep your clients safe)

✅ Straightening out and cleaning up: often accountants may find startups amid a tangle of poorly managed month-end reports and a total absence of a permanent audit trail (but you can properly orientate these companies with a few key processes in place)

✅ Finding great startup clients: even if you’re just starting out and feel like you need to dive in and gain experience, it’s beneficial to be intentional about finding great clients to create a win-win situation (and we’ll touch on this process to help you get started, ranging from cold calls to networking with peers)

With the proper guidance, and a clear understanding of the Cannabis industry, you too can help the many emerging green businesses succeed.

Want more great tips and insider advice on the Cannabis and CBD/hemp accounting niches? For more info on the DOPE CFO program, text DOPECFO to 345345 for our free Cannabis Accounting Guide. For more great tips and soundbites on Cannabis accounting and bookkeeping, make sure you subscribe today to our podcast.

Bookkeepers interested in helping Cannabis and CBD/hemp companies sometimes have an uphill battle, as they often must prove they are much more valuable than in-house bookkeepers. However, these niche-trained bookkeepers are so necessary, because they offer more than just daily reporting. A Cannabis bookkeeper is a critical player in maintaining compliance and helping their clients move toward profitability and growth.

On this week’s podcast episode, Josie Kuykendall joins Andrew Hunzicker, CPA to talk about what it’s like to build her own Cannabis bookkeeping practice and how she plans on helping potential clients realize their business goals.

Listen in to learn:

🌿 What to expect when getting started in Cannabis: with minimal resources and zero GAAP guidance, most bookkeepers feel lost the moment they start reading about 280E and Cost of Goods Sold (but your fears can be allayed once you’re pointed in the right direction with some solid resources)

🌿 Functions of a bookkeeper in the Cannabis industry: beyond day-to-day transactions and bill logs, a Cannabis bookkeeper builds a foundation upon which a Cannabis company can grow and succeed (we’ll talk about the specific role a bookkeeper has in keeping clients audit-ready and their books transparent)

🌿 The value of transferring your background to the Cannabis space: many more traditional bookkeeping or accounting verticals can prepare you for the unique challenges inherent in Cannabis (Josie will discuss her experience as a controller in the complex oil industry and how that positioned her to help new clients)

🌿 Questions to ask clients to best position them for success: learn the integral questions you can ask any client to become a one-stop shop to help them grow and stay compliant (especially how to lean into their stress points to help them view you as an invaluable asset)

If you are a bookkeeper or an accountant interested in serving Cannabis or CBD/hemp clients, but aren’t entirely sure how to get started, this episode is not to be missed!

Want more great tips and insider advice on the Cannabis and CBD/hemp accounting niches? For more info on the DOPE CFO program, text DOPECFO to 345345 for our free Cannabis Accounting Guide. For more great tips and soundbites on Cannabis accounting and bookkeeping, make sure you subscribe today to our podcast.

Navigating cleanup can be overwhelming for many Cannabis or CBD/hemp accountants. However, properly taking your client through the cleanup stage will ensure you start out on the right foot, and will set the stage for their future success and compliance.

In the experience of our founder and the DOPE CFO network, 90% of the clients you serve will need some degree of cleanup, whether they’re a new startup or an established business with messy books.

In this episode, Andrew Hunzicker, CPA discusses the cleanup process with Angela Mays, an MBA and CFE who runs a professional services firm that provides outsourced accounting and financial consulting solutions to businesses in the real estate investing & Cannabis industries.

Listen in to learn:

✅ What it’s like to do your first clean-up with a client: you’ll hear first-hand how an accountant new to the Cannabis space managed the cleanup process for the first time (and the steps you can expect and challenges to be aware of, whether you’re helping a startup or an established business)

✅ The importance of instilling a system for cleanup: without a system in place, you’ll likely feel like you’re all over the map with your new client (and we’ll touch base on system’s components you’ll want before you ever onboard)

✅ Struggles of software reconciliations: from Metrc to FlowHub, we talk buggy software issues and tools Angela used to to make cleanup a smoother process (and how you can access these tools to prepare for your next cleanup)

Don’t miss the chance to learn from Angela’s firsthand experience and pick up some expert tips!

Want more great insights and insider advice on the Cannabis and CBD/hemp accounting niches? For more info on the DOPE CFO program, text DOPECFO to 345345 for our free Cannabis Accounting Guide. For more great tips and soundbites on Cannabis accounting and bookkeeping, make sure you subscribe today to our podcast.

Cannabis is complex enough with the usual day-to-day questions and issues accounting professionals run into. When you add clients wanting to lease or buy land into the equation and try to apply 280E, it may feel like any misstep could lead to detonating a litigious minefield. Not understanding how 280E relates to leasing or buying real estate in Cannabis could lead to some explosive penalties and consequences.

📍How 280E can apply and in which circumstances: although there’s never one answer, 280E always applies to Cannabis companies and owners, but might not apply to strictly non-Cannabis assets (for example, a landlord or company might be able to keep assets “safe” from a Cannabis company declaring bankruptcy by creating a separate non-Cannabis LLC, but this doesn’t necessarily mean the owner will be able to lower or reduce 280E tax liabilities, especially if there’s common ownership of assets within the Cannabis company).

📍Possible complications with leasing accounting: we’ll discuss some complications accounting professionals may encounter helping landlords and land owners (and why lease accounting issues can require high-level services from specialized accountants that involve analyzing the accounting, tax, and cash flow implications tied to the owner’s assets).

📍Tools to determine the buy or lease debate: there are tools to ease the headache of determining the risks of leasing assets, such as buy versus lease calculator (and you’ll learn how to locate these tools that can look at cash flow effects and forecast any tax implications to make better decisions for your clients).

Want more great tips and insider advice on the Cannabis and CBD/hemp accounting niches?  For more info on the DOPE CFO program, text DOPECFO to 345345 for our free Cannabis Accounting Guide. For more great tips and soundbites on Cannabis accounting and bookkeeping, make sure you subscribe today to our podcast.

Many accountants new to the Cannabis or CBD/hemp space often feel overwhelmed by the prospect of finding clients, getting them on a sales call (or two), then closing.

You’re an accountant after all, not a salesperson. However, once you establish an actionable and repeatable system that effectively connects you with a CEO and also hooks them with your value-add pitch, you can begin to confidently land more clients.

On this week’s episode, Andrew Hunzicker, CPA is joined by two DOPE CFO students, Elizabeth “Betsy” Morem and Mark Waller, both licensed CPAs. Betsy and Mark outline the exact strategy they used to get a CEO on a call, and how they secured his business for their new Cannabis accounting firm.

Listen in to learn:

✅ Why two brains can be better than one: tag-teaming CEO calls can boost your confidence in landing new clients (and increase your odds for building a client base)

✅ A step-by-step process for landing calls that convert: getting a CEO on the phone is one thing, but getting them to commit is the clincher (you’ll learn the process Betsy and Mark used, and how you can make it your own)

✅ Insights into the challenges of finding CEOs: clients don’t just fall into your lap, but with dedication you can make the process a bit smoother (and take a couple of tips away from other accountants’ experiences to navigate the challenges of client acquisition)

✅ Pricing strategies for new clients: after you attract the interest of a client, the next step is to determine your pricing (and we make that a little easier with input from accountants new to the Cannabis space)

With the right resources and an established sales system, you, too, can be closing Cannabis CEOs!

Want more great tips and insider advice on the Cannabis and CBD/hemp accounting niches?  For more info on the DOPE CFO program, text DOPECFO to 345345 for our free Cannabis Accounting Guide. For more great tips and soundbites on Cannabis accounting and bookkeeping, make sure you subscribe today to our podcast.

Cannabis CEOs must always be ready for an audit. Being in the spotlight in an industry that is still federally illegal means you must conduct all operations with exacting detail, especially accounting.

Rumor has it, the IRS and local tax agencies are currently looking to collect millions in what they believe to be unpaid taxes. Yikes. Many CEOs have lost licenses, been fined large sums, and even spent time in jail after they were audited and the tax courts determined they didn’t properly pay their taxes.

As a Cannabis accounting professional, it is your job to paint a complete picture of how money flows in and out of a business, both in its day-to-day transactions and overall operations. With robust reporting and a rock-solid audit trail, your clients will have an easier time winning over investors, partners, and board members, along with being prepared for that inevitable audit.

Learn how to set your clients up for success through the implementation of an audit trail by tuning into our latest podcast hosted by DOPE CFO founder, Andrew Hunzicker: “Ep. 55: How to Build a Rock Solid Cannabis Audit Trail and Keep the IRS on Your Good Side.”

Key points Andrew will address include:

🌱 Definition of an audit trail: learn what an audit trail is and why it is critical to maintaining compliance of any Cannabis business (and how a correct audit trail provides essential data any auditor can easily track seven years from now).

🌱 Parts of a month tie-out system: discover why a month tie-out system is a huge part of the audit trail (which will allow you to clearly document all adjusting journal entries and help your accounting systems run like clockwork).

🌱 Why audit trails add incredible value to your client: CEOs/clients are able to own and have permanent access to an effective audit trail not stored on your server (this empowers them to utilize their own data at any time necessary to fulfill requests from lenders, banks, investors, and auditors).

Listen in for your overview of how to build an audit trail, and you will never again conduct business without one!

Want more great tips and insider advice on the Cannabis and CBD/hemp accounting niches?  For more info on the DOPE CFO program, text DOPECFO to 345345 for our free Cannabis Accounting Guide. For more great tips and soundbites on Cannabis accounting and bookkeeping, make sure you subscribe today to our podcast.