Describe your journey into the cannabis industry. How and why did it happen?
Five years ago, our co-founder was stricken with cancer and endured aggressive treatments like chemotherapy. In order to manage the side effects, they became interested in exploring the benefits of medical cannabis. It was this disheartening to see all of the legal obstacles the industry faced due to the Controlled Substances Act.
What makes Green Space Accounting unique?
What makes Green Space Accounting unique is that we provide "peace." Peace in your accounting, peace in your finances, and peace of mind. We understand that the financial side of your business can be complicated and envision a cannabis space where companies are more equipped to navigate their financial situations. We offer a complete advisory service package that is enhanced and customizable to meet a client's specific needs. Our team has access to the sharpest accountants and CFOs in the industry!
What challenges should cannabis business owners expect to face in their accounting and bookkeeping efforts?
The 280e is the biggest challenge that most businesses face. They are burdened with the cost of operation as a standard business, but many operating expenses are not deductible. The second issue is securing cash and the risk of misappropriation of money. Without being able to access bank accounts easily, there is an inherent risk of misuse of cash. The third challenge is the technical knowledge to properly record and account for business transactions according to federal and state regulations.
What resources would you recommend cannabis business owners turn to for help navigating accounting and compliance issues?
We think it is essential for every business owner to have a B.A.I.L. team. B.A.I.L. stands for Banker, Accountant, Insurance & I.T., and Lawyer. Having the right support team in place will ensure that you establish a good foundation and remain in compliance with the ever-changing federal and state regulations.
What are the accounting and compliance implications of adult-use markets rolling out?
We’re seeing more and more states legalize adult-use markets, which is a game-changer for the industry. As more adult-use storefronts open up, we believe we’ll see lesser compliance restrictions in comparison to a medical dispensary. Due to the nature of their business, we could see more tax deductions.
Describe your perfect day at work.
First, a perfect day for our team at Green Space Accounting is always helping our clients resolve compliance or technical accounting matter. Along with this, we enjoy reading up on trends in the industry from sources like accounting blogs, legislative literature, and the GAAP accounting guidance. It's like playing with Legos; you keep adding blocks and blocks to the picture until you have created a financial structure to be proud of.
What piece of advice would you give to prospective business owners entering the cannabis industry?
If you are looking to enter the industry, we suggest that you surround yourself with a team of like-minded business professionals who understand your industry and keep up with ever-changing laws and regulations.