How US Accountants Are Serving a $70bn Cannabis Market
Andrew Hunzicker & Naomi Granger
Andrew Hunzicker co-founded DOPE CFO with Naomi Granger. Together, they have built a national cannabis accounting/bookkeeping training program to help accountants in over 40 US states navigate and thrive in the rapidly developing cannabis industry.
They are world leading experts in cannabis startups, providing CFO services, turnaround and high-growth strategies, capital sourcing, mergers. exits and wealth protection. In the US, cannabis is legal in 31/50 states, with 9397 legal cannabis growing licences and a predicted $70bn economic impact by 2021. So this is a massive growth area for accounting services. Shownotes:
'XXX' says cannabis accounting experts @dopecfo on the #Accounting Influencers Podcast #accountex #advisory #accountinginsight
Background on cannabis and accounting: Accounting in and of itself is a challenge because software is truly lacking and doesn’t cater to the specific needs of cannabis businesses. Quickbooks and other accounting software do no have a chart of accounts tailored to cannabis entities for example. There are four sub-industries in cannabis: farming, food production, chemical manufacture, and retail, and many cannabis companies involve all 4 of these. Additionally, most set up complex multi-entity structures, use cost and consolidated accounting, and have complex inter-company transactions.
To serve them well, a bookkeeper or accountant needs to understand these industries, cannabis, the state/federal issues, and have a good work papers. In addition, there are even more industry issues such as lack of banking, complex software, state seed to sale tracking, cash management issues, investor reporting, GAAP accounting and inventory management. Larger accounting firms at this point in time are not heavily involved in cannabis, meaning these multi-million dollar operations must find smaller firms that are willing to help them with their accounting.