Search Results for: Cannabis

Jeffrey Gittler to Help Lead Cannabis Practice at PKF O’Connor Davies

Jeffrey Gittler

New York-based PKF O’Connor Davies, an IPA 100 firm, has promoted Jeffrey Gittler as co-leader of the firm’s cannabis practice.

Gittler has been part of the firm’s cannabis group since its inception and has guided its expansion of services to include audits, outside accounting and CFO services, regulatory review, tax services, advisory insights for investment funds and valuation services.

“Jeff has been a tremendous asset to our cannabis practice, and I’m excited to welcome him as co-head of the team,” said Noam Hirschberger, current head of the cannabis practice. “The cannabis and CBD industry has proven to be one of significant opportunity as well as uncertainty, and our clients have come to rely on Jeff as a voice of reason with tremendous experience and insights to share.”

AICPA Offers Guidance on Working With New Clients in Cannabis Industry

The cannabis industry offers CPAs a bevvy of prospective new clients. But the nature of the industry also opens to door to several potential challenges and pitfalls, the AICPA says.

Several states have legalized marijuana use for recreational or medical reasons, creating a burgeoning industry of growers, distributors, and retailers such as Full Spectrum. Revenue from medical and recreation cannabis is estimated to reach $12 billion this year. Due to how big this industry is set to grow, many people are deciding to start their own careers to help them make as much money as possible. Recreational marijuana has always been popular but in recent years, its popularity has grown considerably. People can smoke the marijuana via glass pipes or like a cigarette, or it can even be put into foods. Marijuana has become very versatile and individuals can do a lot with it. These days it is as simple as making and distributing this cannabis from home through using the rosin press piece of equipment. This will make it considerably easier for people to earn money quicker in this industry. It’s important that you receive all of the information that you think you may need first before making any further decisions about your career choice. The accounting profession, similar to the legal profession, can offer its expertise to clients in the cannabis industry, such as auditing and taxation services, as well as expert guidance for avoiding fraud or theft.

With these opportunities come serious downsides, as marijuana remains illegal at the federal level. As a result, few banks are willing to deal with players in the industry, leaving it largely a cash operation. CPAs providing business advisory or other accounting services to clients in the cannabis industry need to navigate the nuances of federal and state law and to avoid being charged criminally, potentially resulting in fines, jail time or the loss of their license.

The American Institute of CPAs details the risks and opportunities for CPAs working in the cannabis industry in the latest Eye on Fraud report. It offers a review of many of the State Boards of Accountancy positions on working in the cannabis industry and highlights some of the issues and challenges facing both the cannabis industry and CPAs supporting it.

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AAFCPAs Expands Cannabis Practice

Kevin Michaelan

Westborough, Mass.-based AAFCPAs (FY18 net revenue of $33.5 million) has expanded its cannabis practice with the addition of Kevin Michaelan, who will lead the growing niche from the firm’s Boston office.

The firm advises businesses and investors throughout the business lifecycle, including start-ups, entities expanding into multi-state operations, and those planning to exit the business. Michaelan is known for his deep knowledge of trends impacting the industry, such as aggressive growth, rapidly changing regulations, cross-border restrictions, and mergers and acquisitions.

“He is deeply immersed in the cannabis space and well-known for his prolific tax and business strategies,” says co-MP Dave McManus.

“Cannabis companies are challenged by capital and taxes,” Michaelan says. “We have proven strategies to address both and I’m eager to turn these strategies into competitive advantages for AAFCPAs’ clients.”

Anders Focuses on Cannabis Industry Following Missouri Legalization

St. Louis-based Anders CPAs + Advisors (FY17 net revenue of $31.8 million) is expanding expertise and services for businesses in the cannabis industry following the legalization of medical marijuana in Missouri. As businesses in this industry are continuing to grow, it comes as no surprise to find that some startups may find it useful to get in touch with professionals who could give them advice on a business in this particular industry. From being able to keep up with the supply of cannabis seeds by buying more at, for example, and getting a license to getting in touch with investors, there’s a lot to consider when it comes to opening a dispensary.

Anders says it has a team committed to staying on the forefront of evolving regulations, licensing procedures and accounting practices for the cannabis industry, both on the technological front with the use of seed to sale software, and on the legal with specialized lawyers.

“This is a great opportunity for the firm to enter into a progressive industry and offer valuable insight and expertise to cannabis businesses, from seed to sale,” explains Adam S. Prest, tax principal and leader of the Anders cannabis team.

The firm works with cannabis entrepreneurs, including cultivators, extractors, manufacturers, dispensaries and investors. They spend a large amount of their time analyzing the sales of different cannabis varieties such as the popular gorilla glue strain to determine which products sell well. The team has the tools to help cannabis businesses succeed and navigate regulations and complex tax challenges, including Section 280E. Anders is offering services to help with entity selection and business plan development prior to the license and application process, to performing valuations to assist in the sale of a business.

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EisnerAmper Expands Cannabis Practice

New York-based EisnerAmper (FY18 net revenue of $360.7 million) anticipates rapid expansion of the hemp and cannabis industry at the federal, state and international levels and is therefore expanding its services.

EisnerAmper is adding to its accounting, tax and advisory services for hemp and cannabis companies, from startup to exit. The firm also helps entities prepare for and adapt to regulatory changes and offer compliance services designed to meet annual governmental reporting requirements.

“This is the fastest-growing and most quickly evolving industry I’ve seen in my 35 years in business advisory services,” says Rick Frimmer, EisnerAmper managing director and cannabis and hemp practice leader. “What sets us apart is our practical experience having performed many engagements in this one-of-a-kind sector on behalf of both public and private companies. We know the landscape. We know the participants. And our lengthy track record of accounting proficiency and a client-centric approach is widely known.”

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RoseRyan Launches Cannabis Company

RoseRyan of Newark, Calif., has launched a new company, Kukuza Associates LLC, that concentrates solely on the cannabis market. The cannabis industry is most certainly on the up and up and has become extremely lucrative. This can be seen with the emergence of all these new companies bringing with them occupations that have very attractive salaries. For example, budtenders make about $12 per hour on average which is a very appealing figure for those looking to make their start in the industry.

The new company is a finance and accounting consulting firm that closely mirrors its parent, RoseRyan. Founded in 1993, RoseRyan has more than 100 professionals, delivers finance and accounting solutions.

Explains RoseRyan CEO Kathy Ryan, “It’s exciting to launch Kukuza Associates, a finance and accounting consulting firm powered and backed by RoseRyan. It deepens our investment in the cannabis market and is geared specifically to this dynamic, rapidly evolving marketplace.” RoseRyan entered the cannabis market in 2014.

Kukuza Associates works with startups and established companies in every segment of the cannabis market at every stage of the lifecycle. Say for instance a new company wanted to try and break into the marijuana industry, using a company like Kukuza Associates coupled with a marketing agency such as this marijuana seo company, they might find their growth could be a lot greater than if they were to try and grow their cannabis business themselves.

Says Dave Roberson, CEO of Kukuza, “Designed for this unique marketplace, Kukuza’s finance and cannabis accounting solutions are vital for businesses that are growing, vertically integrating and eyeing deals. Our experienced team steps in, brings order to the chaos and navigates cannabis companies ahead by putting a solid finance foundation in place.”

He notes that Kukuza’s cannabis solutions address strategic finance as well as day-to-day accounting, emphasizing that both are prerequisites for sustainable success. The company’s name is drawn from the Swahili word meaning potential and growth.

Based on RoseRyan’s original offering for the cannabis industry, Kukuza offers a refined and expanded set of cannabis solutions: assessment, strategic finance, outsourced accounting, financial reporting and analysis, transaction support and internal controls.

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Janover LLC Launches Cannabis Industry Practice Group

Marsha P. Ellowitz

Garden City, N.Y.-based Janover LLC (FY17 net revenue of $30 million) announces that it has launched its cannabis industry practice group, headed by Marsha Ellowitz and Jason Hoffman, who have focused on this industry for over five years.

Janover works closely with their clients in the cannabis industry to properly structure business entities so that legal and tax advantages are optimized. The firm offers these clients a broad spectrum of traditional services, as well as, IRC Section 280E compliance and business valuation, which are critical for clients in the cannabis industry.

“We listened to our clients’ needs in the cannabis industry and determined that it was imperative to expand our offerings,” notes Mark Goodman, Janover’s MP.  “Our cannabis industry practice group builds value for our current clients, and will attract new clients within this evolving field.”

Accounting Firm Leader Joins Cannabis Solutions

Christopher Taylor, who recently ran his own accounting firm, has been hired as the first finance chief for Promap Corp. of Colorado Springs, Colo., which will soon be called Advanced Cannabis Solutions Inc.

Taylor’s firm specialized in auditing the books of medical marijuana businesses in Colorado, though he says he isn’t an avid marijuana user himself, CFO Journal reported. The company won’t produce, sell or distribute marijuana, but plans to purchase properties where the drug is made or sold, and lease the facilities back to the owners.

It is no secret that the cannabis industry is thriving. However, growing marijuana plants is a complex operation that relies on a number of intercorrelated factors. For this reason, an increasing number of cannabis business owners are turning to technological solutions such as cannabis seed to sale software. Above all, managing, monitoring, and streamlining the processes involved in operating a business that deals with marijuana is crucial if a company is to survive.

Taylor said he intends for Advanced Cannabis to be a fully reporting company by the time it files its quarterly report for the September period. “I get to design the internal controls,” he said. The combined companies will soon implement a name, management and stock trading symbol change to reflect the new direction and business plan of the company.

MGO Merges in New York Firm

Los Angeles-based MGO (FY21 net revenue of $98.1 million), an IPA 100 firm, has announced that it has merged in Nussbaum Berg Klein & Wolpow CPAs (NUSSBAUM), with offices in Melville, N.Y., and Manhattan. MGO will add the firm’s 73 team members, including all 11 partners.

Founded in 1990, NUSSBAUM serves middle market businesses and high-net-worth individuals on the East Coast, offering a full spectrum of accounting, auditing, tax and business advisory services for closely held entrepreneurial businesses and public companies.

“The East Coast’s concentration of wealth and emerging cannabis markets give us an opportunity to continue building value and establishing best practices through our private client services group, cannabis practice and other industry initiatives,” says Kevin O’Connell, CEO and MP of MGO.

Steve Wolpow, who joins MGO as the OMP in Melville, says, “This is a unique opportunity to enhance the services and client experience NUSSBAUM is known for by leveraging MGO’s size and international footprint. This is a momentous step for both our clients and our professionals, and we are excited about the future as part of MGO.” Former NUSSBAUM partners and team members will continue to operate from the Melville office.

Joe Tarasco, CEO of Accountants Advisory Group, who advised both firms on the transaction said, “This deal makes MGO a major player in Long Island, New York, with its second combination in the area. MGO is one of the fastest-growing CPA and advisory firms in the U.S., and the firm continues to expand on the East Coast to offer its deep industry expertise that has made MGO so successful.”

Marijuana Dispensaries Open and ‘Essential’ but Federal Stimulus Aid Not Allowed

When states began issuing stay-at-home orders, the communities that allow the sale of medical marijuana considered them essential and allowed them to remain open along with supermarkets and drug stores.

Marijuana sales are still illegal under federal law, however, so businesses operating under state statutes are barred from receiving small business aid included in the $2 trillion federal stimulus package called the Coronavirus Aid, Relief and Economic Security (CARES) Act, ABC News reported.

The CARES Act includes $350 billion for the Small Business Administration to provide forgivable loans to companies with 500 or fewer employees, and the Trump administration is now asking Congress for an additional $250 billion.

Dispensary owners have reacted with frustration that their businesses are considered essential by one level of government but disqualified from aid by another.

“How can cannabis be deemed essential right now, during this crisis, and yet not be offered the same opportunities as other businesses with stimulus packages or SBA loans?” asks Yvonne DeLaRosa Green, who co-owns 99 High Tide Collective, the only cannabis dispensary in Malibu, Calif. She told ABC News that she doubled staffing to meet the current demand for delivery, pickup and online orders.

Elsewhere, at LivWell Enlightened Health, which owns 18 dispensaries in Colorado and Oregon, 18 company officials agreed to suspend their compensation for three months to avoid making cuts elsewhere, including personnel, The Denver Post reported. “This and other cost-cutting measures put us in a good position to weather the storm,” says executive director Dean Heizer. “So long as the storm lasts 90 days.”

In addition to dispensaries, operations that grow marijuana, conduct lab tests or sell related paraphernalia also have been ruled ineligible. Federal law also prohibits cannabis companies from deducting businesses expenses from taxable income.