The cannabis industry needs CPAs. Why? It’s a rapidly growing industry, with an economic impact that’s projected to react $70 billion by 2021. However, it’s also one of the most tightly regulated industries in the country, since cannabis is a Schedule I controlled substance, making it illegal under federal law, even though it has various levels of legality in over 30 states.

Cannabis companies need qualified, experienced CPAs to manage their taxes and accounting, as well as their business structuring and inventory management, in the face of strict federal and state regulations. Without professional accounting services, cannabis businesses have trouble staying afloat, since the IRS often targets their finances and bookkeeping to find ways to fine or penalize them, or even shut them down.

If using your accounting skills in the cannabis industry sounds like an exciting challenge to you, here’s what you should do to become a California cannabis CPA:

Educate Yourself

To work with cannabis clients, you need to teach yourself about the cannabis industry. Learn about Section 280E of the Internal Revenue Code, and how the IRS has been enforcing it recently. Make sure you understand Cost of Goods Sold (COGS), which can be used to help cannabis companies claim tax breaks. Find out about political and tax issues surrounding cannabis, including recent court cases. Teach yourself about using cannabis accounting software solutions. You should take advantage of Dope CFO’s cannabis CPA education programs, which seek to teach CPAs about the intricacies of accounting for cannabis. Learning as much as you can about the cannabis industry and effective accounting methods for it is the best way to make yourself a solid resource for any cannabis CEO.

Connect With Other CPAs

As a CPA, you know what your accounting strengths and weaknesses are. That’s why you should reach out to other CPAs as you work your way into cannabis accounting. Gathering partners and colleagues will help you offer well-rounded accounting services to cannabis companies. If tax planning and tax preparation are your strengths, you should partner with a CPA who has strong controller skills to balance things out. If you connect with enough of your fellow accountants, you can start your own cannabis accounting firm.

Reach Out to Cannabis CEOs

Whether you’re acting independently or as part of a cannabis CPA firm, you should begin joining Facebook and LinkedIn groups for cannabis startups. Once you’re a member, begin reaching out to cannabis CEOs with targeted messages and emails. Make sure your messages address pain points that would be important to a cannabis CEO, like tax planning, cash flow management, and compliance measures. State your qualifications and explain how your proposed solutions can help them navigate the complex space of cannabis accounting.

Find an Industry Niche

Carve out your own cannabis space with your accounting and industry knowledge. You could focus on accounting for medical dispensaries, or for retail storefronts, or you could focus on accounting for an entire supply chain. Whichever path you choose, stick to it and become as knowledgeable and experienced in that niche as you can. Finding a niche will allow you to develop expertise, which will help you serve your clients to the best of your ability.

California Cannabis CPAs You Can Count On

At GJR Consulting, we have placed ourselves on the cutting edge by offering cannabis accounting services. We push our work to a place where few accounting firms will go because we understand that cannabis is a legitimate industry, and the companies within it deserve access to top-quality accounting services. If you are interested in our cannabis accounting services, contact us today.

Accounting for cannabis is a complex task. On one hand, the cannabis industry is growing rapidly since 11 states have legalized cannabis completely, and 34 states have legalized medical marijuana. On the other hand, cannabis is still a Schedule I controlled substance, which means it is illegal under federal law. Since they are selling a controlled substance, cannabis companies have an extremely difficult time receiving tax breaks and getting banks to take their money.

Because of these restrictions, cannabis accounting must be accurate and tightly managed. If a cannabis company’s finances are not accurately managed, they can be penalized, fined, or even shut down, according to Dope CFO. Even in California, where cannabis is completely legal, cannabis companies must comply with Section 280E of the Internal Revenue Code, which prevents companies whose business “consists of trafficking in controlled substances (within the meaning of Schedule I and II of the Controlled Substances Act).” This is what prevents cannabis companies from receiving tax breaks, since the IRS sees them as drug traffickers rather than legitimate businesses. The IRS is currently enforcing Section 280E quite actively, which leads to the fines, penalties, and shutdowns mentioned above.

If you want to succeed in the cannabis industry, cannabis CPA services can help you structure your business so you can deliver your product from seed to sale while remaining within strict federal regulations. A California cannabis CPA service like GJR Consulting uses the following tools and strategies to help you do that.

 

Careful Tax Planning

When you work with cannabis accounting professionals, they will help you find and implement tax strategies that will comply with federal regulations while giving you room to access tax breaks where possible. For instance, they can help you implement Section 471 of the Internal Revenue Code, which governs taxes and accounting inventories. They can also help you with business structuring by handling the financial side of setting up cannabis and non-cannabis sides of your business or minimizing your tax liabilities with vertical integration. Working with a professional accounting firm to implement cannabis tax strategies will help your business secure a stable future.

Cannabis Accounting Software

While it’s not specialized exclusively for cannabis businesses, you can use QuickBooks to your advantage. Work with your cannabis CPA to draw up charts for the farm, chemical, and retail aspects of your business. This type of software solution will allow you to improve your inventory management.

Accounting Policies and Controls

Work with your CPA to create a summary of these policies and controls that clearly state how cash, insurance, inventory, and other financial aspects of your business will be handled. This will create trust between you and your CPA, and it will outline all parties’ responsibilities. This can help you down the road if the IRS scrutinizes your business or if you face a lawsuit from an investor.

Cannabis Compliance with GJR Consulting

As an entrepreneur in the cannabis industry, you will need high-quality accounting services to help your business grow, thrive, and survive under strict federal regulations and potential scrutiny. At GJR Consulting, we pride ourselves on staying on the cutting edge of the accounting landscape by working with cannabis clients. Not many accounting firms will reach out and help cannabis companies manage their finances during this period of great industry growth, but we are one of the few who will. If you are interested in our cannabis accounting services, contact us today.

As a dentist, you are a small business owner. This means that while caring for patients may be your main goal, your practice management and financial strategies help you meet that goal. The financial side of your business may not be your favorite thing, but it’s a necessary part of what you do. That’s why using accounting services for dentists can help you manage your practice and improve your operations.

Partnering with a CPA firm for dentists can help you do the following things:

Buy a Dental Practice

When you’re just out of dental school, buying a practice may seem overwhelming. There are so many facets to it, so where should you begin? Dental accounting services can help you plan for your career and teach you about bookkeeping, benchmarking, acquisitions, and tax planning and preparation. Once you learn about these topics and processes, you’ll be ready to begin your own practice. An accounting services provider can help you learn everything you need to know to have a successful dental career.

Manage Your Practice

CPA firms for doctors and dentists provide the financial tools to help you succeed in the medical and dental fields. A dental CPA firm can provide you with payroll, accounting, advisory, and tax services that will make it easier to set and achieve goals for your practice. You should receive customized financial solutions that help you with cash flow management, tax write-off assistance, and strategic planning measures. At GJR, we offer customized solutions for all these services so that you can meet your specific goals.

Organize Your Books

If bookkeeping is not your strong suit, you can outsource it to a dental CPA firm. By outsourcing your bookkeeping to accounting professionals, you’ll gain expert insight into financial tasks such as monthly financial goal setting, tax preparation, and payroll processing information. You’ll also receive readable financial statements you can easily evaluate. With outsourced bookkeeping, you’ll have a team of high-quality professionals working hard to help your practice succeed.

An accounting services provider can also train you and your staff on how to use QuickBooks, a leading bookkeeping software. During this training, you will experience walkthroughs for employee paycheck processing, gain a comprehensive insight into expense and income tracking, and learn how to use client and vendor management tools. This training will give you a comprehensive understanding of how to manage your books and your practice through QuickBooks so you can stay financially organized.

Accounting Services for Your Dental Practice

At GJR Consulting, we offer accounting services that will help your dental practice thrive. We understand that you need customized financial solutions that will fit your needs, and we will work with you to deliver them. If you are interested in any of our accounting services for doctors or dentists, contact us today to schedule a consultation.

As a healthcare professional, you’re in the business of helping and healing people. They come to you when they’re feeling sick or experiencing physical problems. Similarly, you should turn to a CPA firm if your medical practice is facing business problems, or if you simply want to improve your business processes. Using a CPA firm for doctors can help you improve your practice management. You can reap the following benefits by outsourcing your accounting services to a CPA firm.

Professional Advisory Services

By using accounting services for doctors, you will have access to financial advisory services that will help you meet your goals. For instance, at GJR Consulting, we offer the following financial planning services for our clients in the healthcare industry:

  • Financial planning for the next three to five years, which includes projected startup costs, operating costs, revenue, profits, and break-even analysis.
  • Staffing development, which includes identifying skill sets new hires need and how to align them with your practice’s goals.
  • Comprehensive development of management systems and implementation timelines.
  • Increased specificity in your target customer profile, product features, and potential obstacles.

Partnering with a CPA firm will give you access to these services and more, and they will give you the resources to sharpen the business side of your practice. These advisory services can help you determine where your practice is and how you want it to grow. You can pinpoint areas where it needs to improve, and you can plan for a future where you can make those improvements and achieve your goals.

An Efficient and Knowledgeable Labor Force

When you partner with a third-party accounting services provider, they provide professionals who can jump in and start advising you on a wide range of accounting topics. This will reduce your practice’s labor costs, since you will not need to hire and train full-time accounting employees. It should also help you streamline your business processes, since you will be able to consult with accounting professionals about cash flow, tax planning, budgeting analysis, accounts payable, tax law, and many more relevant topics. You will maximize your efficiency by outsourcing this knowledge base, since you will have accountants who can answer your questions and implement solutions much more quickly than a batch of new hires can.

Customized Managed Services

An accounting services provider can collect data and consolidate your documents to generate financial reporting that can help them determine what kinds of solutions will benefit your practice the most. This means the provider can give you solutions tailored to your medical group’s needs and goals. Additionally, they can take care of your documents and put them securely into the cloud, where you can access them easily. With these strategies, your service provider can protect your documents and data while giving you solutions that are devised specifically for your practice and its operation style.

Accounting Services for Your Medical Practice

At GJR Consulting, we offer accounting services that will help foster your medical office’s success. We can give you the financial tools that will help you deliver excellent patient care, whether you need payroll consultations or accounting solutions. If you want to help your practice reach its full potential, contact us today.