The Cannabis Accounting Podcast DOPE CFO

Navigating real estate decisions for your Cannabis business is a complex process with no one-size-fits-all solution. Whether you're setting up a cultivation facility, manufacturing plant, or dispensary, understanding the pros and cons of leasing vs. owning and the tax implications of each is crucial to making informed decisions that align with your unique goals and circumstances. 🌿💡

Leasing may offer more flexibility and lower upfront costs, but it also means you're at the mercy of a landlord and may face unexpected rent hikes or even eviction. Owning your property provides long-term stability and control, but it also requires significant capital investment and ties up your cash flow. 💸

The stakes are high, and with so many factors to consider, it's easy to feel overwhelmed. But by arming yourself with the right knowledge and strategies, you can confidently navigate the Cannabis real estate landscape and make choices that set your business up for success. 💪

Listen in to this informative podcast, "Real Estate Strategies for Cannabis Businesses: Navigating Leases, Ownership, and Taxes," as Andrew Hunzicker, CPA and Cannabis accounting expert, breaks down the key considerations for Cannabis real estate and provide actionable insights to help you make decisions that fit your unique needs.

You'll learn:


The advantages and disadvantages of leasing vs. owning Cannabis real estate


Factors to consider when choosing a location and property type for your operation


Tax planning strategies and potential pitfalls associated with Cannabis real estate



Whether you're a cultivator, manufacturer, or retailer, this session will provide you with the tools and knowledge you need to develop a real estate strategy that supports your business goals and minimizes risk.

Don't let uncertainty around real estate hold you back. Tune in and gain the clarity and confidence you need to make informed decisions for your Cannabis venture.

There are two reasons why cultivators need proper financial modeling:


For licensing. Most states require some form of a  plan that illustrates that you understand what your operating costs will be and that you have enough capital to fully fund operations.




For investors and operators alike, modeling is incredibly important to ensure that there is a plan for a successful outlook for the business based on actual information and experience vs guessing.



But creating a comprehensive financial model for a Cannabis business is no easy task. From understanding the true costs of cultivation to navigating complex regulations and market fluctuations, there are countless factors to consider. Overlooking key details or making overly optimistic assumptions can lead to missed targets, cash flow problems, and disappointed investors.



In this episode, Andrew shares the essential considerations and tools needed for creating robust, realistic financial models that can help you navigate the unique challenges of the Cannabis industry.



During this podcast, you'll learn:




The critical importance of understanding best-case, worst-case, and realistic scenarios in your financial projections


Key factors to consider when modeling the true costs of Cannabis cultivation, processing, and distribution


How to account for often-overlooked expenses and potential roadblocks to profitability


Strategies for building flexibility into your financial model to adapt to changing market conditions and regulations


The vital role of understanding Cannabis grow cycles and industry-specific metrics for accounting professionals



... and more!



Whether you're a Cannabis entrepreneur looking to create a solid financial foundation, an investor aiming to make informed decisions, or an accounting professional seeking to better serve your Cannabis clients, this podcast is packed with valuable insights you won't want to miss.

In order to do proper inventory and cost accounting, accountants must have the proper processes and systems in place to meet compliance rules. 

Since Cannabis is considered a Schedule I substance, under 280E companies that sell or “traffic” the plant are not able to take deductions like typical businesses can. However, the DEA is on the verge of rescheduling the drug to Schedule III which eases the tax burden of 280E, and can create more complexities for Cannabis companies and the accountants that serve them.

In our latest episode, we discuss the ins and outs of cost accounting and compliance for the current landscape of the Cannabis industry, and what’s to expect when the plant inevitably gets rescheduled by the DEA.

We cover concepts that include:


Inventory accounting best practices, tools, workpapers, and procedures


IRC 471-2 Lower of Cost or Market considerations


Compliant inventory count procedures


Cultivation and manufacturing cost accounting considerations (how to find the cost to grow a pound of weed or gram of oil)


Dispensaries and IRC 471-3



…and more!

Our guest on today's episode of the DOPE CFO Podcast is Alyssa J. Dillon. Alyssa is a former CFO that managed the accounting for non-profits.

After quitting her job in 2018 with $1000 to her name, and after having two children in one year, she had to figure out what to do, and working for someone else wasn't the answer. Within a few short months, Alyssa was bringing in clients and making over $25k/month and hasn't stopped. Fast forward to today, she's helping (non-cannabis) accountants quickly build thriving firms using the systems and practices that she's employed that have helped her become successful.

Sources within the DEA have confirmed that rescheduling has been green-lit and is moving forward. Speculators have  been saying that this wouldn’t happen until after the election, but it looks as though things are moving quicker than critics have been suggesting.

So what does this mean for Cannabis companies and the people who serve the industry?

We go over the details in our latest episode. 

With 280E out of the picture, there is a massive opportunity to support Cannabis companies in a major way.

The Associated Press just announced that DEA has agreed to reschedule Cannabis, which is going to usher in all sorts of change. Unfortunately, a lot will stay the same, and things are inevitably going to become much more complicated from a compliance standpoint. On the one hand, 280E won’t be so punitive, but taxes will still be high, and accounting will be even more challenging. Don’t get blindsided by what’s to come. 

In our latest podcast, DOPE CFO CEO and founder, Andrew Hunzicker, CPA discusses "How accounting and taxes will change when Cannabis is Rescheduled."

He shares information on:


How rescheduling affects raising capital
The more complex tax returns
Valuation considerations as rescheduling happens

…and more!

Tune in and take notes so you don't get left behind by the massive changes ahead in this industry.