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We see it every day. Cannabis founders —visionary, hard-working, and all-in—wake up one morning to find their finances in shambles.Sometimes it’s because the wrong CPA was brought on board. Other times, it’s the result of trying to keep up with the numbers alone, in an industry that punishes even the smallest mistakes. Either way, the story […]
Insights from a CFO Newsletter – 420CPA“Those closest to you determine your level of success.” – John MaxwellAt the core of every business decision is you. Whether you’re starting a new business or stepping into an existing one, the first step is always clarity on your personal goals. What do you want to achieve? What […]
When New Jersey and New York rolled out recreational cannabis sales, industry watchers anticipated a close race between the two neighboring states. Both markets seemed primed for success, building on earlier medical programs and boasting significant consumer demand. However, just a few years in, New Jersey has taken a commanding lead, outpacing New York in […]
How 420CPA Helped a Cannabis Company Reduce Legal and Financial RiskClient OverviewA prominent cannabis company faced a major financial lawsuit, with claims initially reaching millions of dollars. The case was built on financial records that inaccurately portrayed the company as highly profitable, when in reality, it was struggling with debt and liabilities.The inaccurate financial data, […]
How 420CPA Helped a California Cannabis Business Reduce Its Tax LiabilityClient Overview: A California Cannabis Microbusiness Under AuditA California-based cannabis microbusiness, licensed for cultivation, manufacturing, distribution, and retail, found itself under significant financial stress when the IRS audited its 2019-2021 books. The IRS reclassified the company as solely retail, disallowing manufacturing-related COGS (Cost of Goods […]
Optimizing Staffing for Business Transition Introduction: Managing Staff During Business Transition In Part One of our Transition Management Series, we discussed how 420CPA, led by Rachel Wright, helped facilitate the dissolution of Greenleaf Ventures, ensuring the new owners successfully navigated the early phases of transition. Part Two focused on setting up financial systems […]
As the cannabis industry evolves, businesses face challenges ranging from regulatory complexity to market competition. Trade associations provide invaluable support, helping operators navigate these obstacles through advocacy, resources, and collaboration. Organizations like the Cannabis Chamber of Commerce, Global Cannabis Network Collective (GCNC), and International Cannabis Bar Association (INCBA) bring together experts, leaders, and businesses to drive growth and innovation. 1. […]
The federal landscape for hemp and cannabinoid regulation has often been unclear, allowing for misinterpretation and loopholes. With a rapidly evolving industry, it’s no surprise that legislative efforts are ongoing. Recently, Senator Ron Wyden introduced a bill aimed at establishing federal regulations for hemp-derived cannabinoids like CBD. While this bill represents a significant step […]
Tax-on-Tax “Tax Stacking” to Continue Governor Gavin Newsom signed Senate Bill 1059 into law on September 28, 2024, halting the double taxation that has plague the state’s cannabis industry since adult-use legalization. “This bill would prohibit a city or county from including in the definition of gross receipts, for purposes of any local tax […]
