As the cannabis industry continues to grow, so does the need for accurate and reliable accounting practices. With razor-thin profit margins and complex tax and capital issues to deal with, accounting operations for cannabis companies are more tricky than standard accounting practices. Navigating through the local, state, and federal laws, requirements, and technicalities can make or break your ability to be profitable.
While many accountants and bookkeepers are familiar with the basics of accounting for a business, they are not prepared to handle the unique challenges that come with working in the cannabis industry. Inexperienced accounting professionals, who aren’t familiar with the specific needs of cannabis companies, treat these businesses like every other company and are getting Cannabis CEOs and investors into hot water as a result of not knowing how to correctly do cannabis accounting. This is where a Cannabis CFO can help.
A Cannabis CFO is a financial expert, that gives the CEO insight to help drive business decisions. They help you strategically maximize expenses to minimize taxes, track your expenses, and ensure that you are compliant with all applicable laws and regulations. More important, they are there to present the numerical facts and make recommendations based on those facts. Their strategic insight should map out how to grow and scale your business. The goal of a Cannabis specialized CFO is to empower cannabis CEOs, investors, and executives with “at the ready” & “up-to-date” financials and cash position of the company.
If you want to be among the premier cannabis business to the next level, you must secure a Cannabis CFO. They can help you overcome the challenges of running a business in this rapidly-changing industry and position your company for success.
Why the cannabis industry needs financial experts
The cannabis industry is growing rapidly, and with that growth comes new challenges. According to some estimates, the industry could be worth $30 billion by 2023. One of the biggest challenges facing cannabis businesses is financial compliance. With strict laws and regulations at the local, state, and federal level governing the industry, it is crucial to have someone on your team who is knowledgeable about the financial side of things. This is where a Cannabis CFO can help.
In order to meet the unique challenges posed by these regulations, businesses in the cannabis industry need financial experts who understand the industry and can help them navigate the complex web of laws and regulations including 280E, 471, and Cost Accounting.
What a Cannabis CFO can do for your business
Cannabis CFOs are in a unique position to help Cannabis businesses navigate the often-complex world of financial regulations. They work with investors and lenders to ensure that the company is compliant with all applicable laws and regulations, and they can help the company secure the funding it needs to grow and expand. Additionally, Cannabis CFOs can help cannabis businesses manage their cash flow and create sound financial plans for the future. In short, a Cannabis CFO can be an invaluable asset to any company in the industry.
If you are thinking about starting a cannabis business, or if you already have a Cannabis business up and running, consider enlisting the help of a Cannabis CFO. A qualified and experienced Cannabis CFO will bring strategic financial insight to ensure your company’s financial success.
A well-rounded and experienced Cannabis CFO will be an invaluable asset to your cannabis business. The ever-changing landscape of the industry can be daunting, and a Cannabis CFO will help you navigate it with confidence. They will also bring a strategic perspective to the table that can help you make crucial decisions about the future of your business.
In addition, Cannabis CFOs can help you with a wide variety of tasks, from financial planning and analysis to human resources and risk management. Monthly Reports are a minimum for your CFO to provide to the CEO/management, but also should include investor reports, lender reports, bank compliance reports, and more. They will make sure that your company is compliant with all applicable regulations, and that you have the necessary systems and processes in place to run smoothly. They should provide higher-level financials (consolidations if needed), a Balance Sheet, P&L, and Statement of Cash Flows (quarterly), a rolling cash forecast, and dashboards to provide insight into how to best grow your business and scale your operations.
If you are looking to take your cannabis company to the next level, then a specialized Cannabis CFO should be high on your list of priorities. They will help you make smart decisions, avoid pitfalls, and position your business for success.
How a Cannabis CFO can Help You Grow and Scale Your Business
The finance function in a cannabis company is vital to ensuring accurate and reliable financial reporting, as well as air-tight controls. A Cannabis CFO with a strategic mindset can help the CEO make better decisions for their company by keeping various stakeholders informed and up-to-date on all the latest compliance requirements.
When it comes to scaling your business, a Cannabis CFO assists the CEO in identifying opportunities and making decisions that will allow you to grow in a sustainable way. They will also be able to provide guidance on how to navigate the ever-changing landscape of the cannabis industry so you can focus less on “beating 280e” and have MORE bandwidth for building your brand, growing market share, and building a strong customer base.
If you are looking to take your cannabis company to the next level, then you must have a rock-solid Accounting system that includes at a minimum: a perpetual data room, auditable books including correct cost accounting, Accounting Policies & Procedures, and internal controls. A Cannabis CFO trained in cannabis accounting will bring a wealth of experience and knowledge to the table that will be invaluable in helping you grow and prosper.
Filling the CFO Role at your Company
Cannabis companies need access to the right skills at just the right time. The fact of the matter is, that the bookkeeping and accounting being provided to 90%+ of the Cannabis Industry is extremely poor. A Cannabis CFO outsourced team can give you, the CEO, the insight you need to make quick but informed decisions about your company’s future.
Outsourcing the CFO role is a great way to avoid overhiring, infuse your company with expertise, and keep moving at a quick pace. When you have access to a team of finance experts, you can be confident that you are making the best decisions for your business.
If you are looking to get a world-class valuation for your cannabis business, outsourcing the CFO role is a smart option. With the help of a CFO team, you can focus on growing your business without worrying about the financial side of things. With their help, you can make informed decisions that will help your business thrive.
Are you ready to take your cannabis business to the next level with a World Class Cannabis Accounting Firm?
At Green Team CFO we have decades of accounting experience. This has given us a complete understanding of the various types of cannabis entities and their specific needs. We know how to properly execute GAAP accrual and cost absorption accounting. We can provide the right tools to accurately report for both the IRS and state compliance. We also understand how to prepare the proper monthly reports so cannabis entities have the information they need for AUDIT, LENDERS, BOARD, and INVESTORS.
Our team will work closely with you to develop a comprehensive understanding of your business. We will then put together a plan that is tailored specifically for your company in order to help you power through your growth phase.
World-class accounting systems build world-class businesses. The cannabis industry is complex and ever-changing, which is why it’s so important to have financial experts on your team. A Cannabis CFO can help you navigate the landscape, make informed decisions, and grow your business in a sustainable way. So if you are ready to take your cannabis business to the next level, contact Green Team CFO today!
How can Green Team CFO Maximize the Value of Your Cannabis Business
We are leading the Cannabis Accounting industry by focusing on helping CEO. From entity structure, tax planning, to accounting, budgeting, and profit analysis, we’ll help your extract the maximum amount of value from your business with white-gloved service.
Want to learn more about building a world-class business with a world-class accounting system? Let’s talk. We can quickly decide if your cannabis business is a fit for our expertise.