What is a CPA Firm?

What is a CPA Firm?

Certified Public Accountant (CPA) firms handle the auditing, accounting, financial, and consulting aspects of nonprofit, private, and public businesses, along with government agencies. These organizations need a minimum of one state-licensed certified public accountant from the state they operate.

Each state establishes licensing and certification requirements of the CPA, which is why CPA qualifications differ from state to state.

In this post, we explain CPA firms, what it means, what they do, and common questions about the field.

Looking for a CPA firm to handle your company’s financial planning? Contact us now to speak with one of our experts.

CPA Firm Meaning

CPA Firm Meaning

A Certified Public Accountant Firm (CPA firm) is a firm that’s licensed in the state it operates and is owned, at least partially, by a CPA.

CPA firms are usually auditing and accounting firms that go beyond generalized tax and accounting firms. From tax preparation to international accounting practices, these tax professionals represent clients while providing consulting services.

These firms can specialize in many different areas:

  • Auditing
  • Tax Preparation
  • Accounting
  • Financial Consulting
  • Systems Implementation

Business goals become more easily achievable with an expert CPA handling your company’s financials.

What is a CPA?

What is a CPA?

A Certified Public Accountant (CPA) is an accountant who’s licensed to provide auditing, accounting, financial, and consulting services for businesses. Their job includes evaluating performance metrics within the business, ensuring no laws are violated in the process of transactions or other operations that affect the company’s assets or income.

CPA services are essential come tax season. Between bookkeeping, tax planning, and filing returns, these professionals are crucial for businesses.

What Does a CPA Firm Do?

What Does a CPA Firm Do?

The work of a CPA firm is diverse and includes various financial services for businesses and government agencies. These services ensure organizations are operating without violating state and federal laws while implementing a strategy to scale.

CPAs offer their clients a wide range of services, which can be categorized in the following ways:

Auditing – Auditors assess a company’s financial statement to ensure it is an accurate reflection of the business’s financial position in case of an audit.

Tax Preparation – CPAs help businesses and individuals comply with tax laws and file tax returns.

Accounting – Accountants keep track of all business, personal, and investment transactions. They also help individuals or businesses prepare ledger entries, develop budgets, and reconcile accounts to balance out what has been earned versus what has been spent.

Financial Consulting – Financial consultants provide assistance with company goals so they can be achieved more easily. This usually involves providing information about financial metrics and how they affect the company’s growth.

Systems Implementation – This aspect of a CPA firm helps businesses transition to new software or technology by helping them understand how it works and what kind of return they will get on their investment.

It’s easy for companies to see increases in efficiency and productivity when an efficient system is implemented correctly. This is why most CPA firms worth their weight in gold are highly sought after for anyone who isn’t a tax professional themselves.

CPA Firm vs Accounting Firm

CPA Firm vs Accounting Firm

The main difference between Certified Public Accountant firms and accounting firms is that CPAs have a CPA license to provide auditing, accounting, financial, and consulting services for businesses. They also have a role to play in estate planning.

CPAs must meet stringent requirements set forth by the state they operate in. These requirements include holding a Bachelor’s degree (some states may have more demanding minimum education requirements) and passing the Uniform Certified Public Accountant Examination before becoming licensed.

Accountants, on the other hand, are not licensed and typically only provide tax preparation and bookkeeping services. While some accounting firms may have a CPA designation on staff, they are not required to have one.

Not all accountants are CPAs. However, all CPAs are also accountants that can represent clients to tax authorities like the Internal Revenue Service.

So, if you’re looking for a comprehensive financial solution for your business, it’s best to seek out a CPA firm. They have the experience and expertise to help your business grow and succeed.

CPA Services Summarized

CPA Services Summarized

As outlined above, CPA services typically include the following:

Auditing – CPAs help businesses and individuals comply with tax laws and file tax returns.

Accounting – Accountants keep track of all business, personal, and investment transactions. They also help individuals or businesses prepare ledger entries, develop budgets, and reconcile accounts to balance out what has been earned versus what has been spent.

Financial Consulting – Financial consultants provide assistance with company goals so they can be achieved more easily. This usually involves providing information about metrics shown in the operation’s financial statements and explaining how they affect the company’s growth.

Systems Implementation – These firms help businesses transition to new software or technology by helping them understand how it works and what kind of return they will get on their investment.

CPA firms are highly sought after for their expertise in tax planning, management of financial affairs, and providing businesses with the knowledge they need to keep on top of their business finances.

Accounting Services Summarized

Accounting Services Summarized

Accounting firm services typically include the following:

Bookkeeping – Accountants keep track of all business, personal, and investment transactions.

Tax Preparation – Accountants help prepare individual or company tax returns. They can also assist with audits or appeals if a client is audited by the IRS.

Payroll Services – Some accounting firms will provide payroll services for clients so they don’t have to outsource this function.

Tax Planning – Accountants help clients figure out the best ways to reduce their tax burdens so they can keep more of what they earn.

Common Questions about CPA Firms

Common Questions about CPA Firms

What is the purpose of a CPA firm?

These firms handle the accounting, auditing, financial, and consulting duties for non-profit, private, and public companies, along with government agencies.

What is a CPA consulting firm?

A CPA consulting firm is a private company that provides CPA services to clients. This usually involves analyzing financial statements and providing a clear path to profitability with the operation’s finances in mind.

What does being a CPA mean?

Being a CPA means that an individual is licensed and has met the state’s requirements to provide accounting, auditing, financial, and consulting services.

Are CPA Firms Better Than Accounting Firms?

Are CPA Firms Better Than Accounting Firms?

These firms offer more knowledge to the companies they work with. The employees are experts in their niches, and they understand how to properly manage companies’ financials with legal legislation in mind.

Looking for a CPA team to handle your company’s financials? Northstar is here for you!

Contact us now to speak with one of our professionals and learn how we’ll scale your operation.

What are Liabilities in Accounting?

What are Liabilities in Accounting?

If you’re here, you’re wondering, “What are liabilities in accounting?” Simply put, liabilities in accounting are the organization’s financial obligations.

But what does this mean exactly?

Companies have liabilities that are outlined in their balance sheet. These include but aren’t limited to the money a business owes to suppliers, loans owed, wages payable, and more.

Basically speaking, liability in financial accounting is a company’s financial responsibility. Most of the time, small businesses may have liabilities like money owed to suppliers to consider. But other liabilities exist, of course.

Understanding Liability on a Balance Sheet

How Are Liabilities Listed on a Balance Sheet?

A company’s balance sheet should contain its liabilities. This is a common financial statement that’s generated by a professional or using financial accounting software. We in the industry refer to this as “payables.”

Every business has liabilities – except for those that operate strictly with cash. The operations using cash must pay with and accept it, whether it’s physical cash or via the company’s business checking account.

As you look at your company’s balance sheet, you’ll notice your assets and owners’ equity. Liabilities in accounting equals the value of assets minus owners’ equity. Your assets always will equal your liabilities plus owners’ equity, just as your owners’ equity will always equal assets less liabilities.

Accounts Payable Liabilities

Accounts Payable Liabilities

Accounts payable is a liability because this is the amount of money that’s owed by your business. It should be listed under the current liabilities on your company’s balance sheet.

This can include a loan you made to the business to get it started, a loan you received from a creditor, a product you took on credit, etc. All of these should be listed on your balance sheet.

Your balance sheet or financial statements should include accounts payable. All current liabilities are relevant, including long-term liabilities and contingent liabilities. Even though contingent liabilities aren’t considered a current liability, they’re equally important to consider.

Using Financial Statements to Uncover Liabilities

Looking at your financial statements, you should have no trouble viewing your current liabilities. Whether short or long-term liabilities, they should be listed, including interest payable.

Here’s a list of items you should consider liabilities:

  • Accounts payable (any money owed to suppliers)
  • Salaries owing
  • Wages owing
  • Interest payable
  • Income tax payable
  • Sales tax payable
  • Customer deposits or pre-payments for goods or services not provided yet
  • Lawsuits payable
  • Debt payable
  • Contracts, like a cell phone contract that can’t be canceled without penalty
  • Lease agreement
  • Insurance payable
  • Benefits payable
  • Taxes on investments
  • Accrued liabilities (such as interest owed that hasn’t been billed by the lender yet)

How to Minimize Current Liabilities

How to Minimize Current Liabilities

Minimizing current liabilities is essential for organizations, especially when considering your operation’s financial place. Tracking every aspect of your business’s net worth will ensure you know whether your operation is getting ahead or falling behind.

But how can you minimize current liabilities?

By tracking your financials, you’ll know your business’s net worth. If it’s in the positive, this is ideal. The equation is simple; your operation’s net worth is equal to your most liquid assets minus your liabilities.

Review your business’s spending to learn more about its financials. Make sure to pay down any debts as this will lessen your current liabilities and free up more money every month.

The key here is to decrease unnecessary spending and review where your capital is going. By focusing on your company’s debt, you’re avoiding adding to its debt balances monthly. Then, it’s all about decreasing current debt on your balance sheet and avoiding long-term liabilities when possible.

Organizing Debts & Decreasing Long Term Debt

The snowball method works well for getting a company out of debt. You’ll organize your debts and accrued liabilities from the smallest balance to the largest, paying the minimum on all debt besides the smallest.

For the smallest contingent liability, you’ll pay as much as possible. After paying it off, you’ll do the same for the next smallest debt.

By doing this, you’ll remain motivated as you make some progress. You’ll minimize your liability accounts and current liability this way as you continue to increase your accounts receivable and other current assets.

Restructuring Liabilities

Restructuring Liabilities

You have accrued liabilities that have been growing over time. But there are ways to restructure your liabilities and get your accounting equation into the positive.

Your company’s liabilities include all of the money owed to other people, including but not limited to your vendors. However, keep in mind, just because you restructure your liabilities doesn’t mean you’ve reduced how much you owe. But it can ensure you have more cash on hand, increase your disposable include, and/or lessen how much debt you need to obtain working capital.

Here are some methods to restructure your liabilities and reduce your debt:

  • Change to longer or scheduled payment terms with your suppliers
  • Replace your existing loans
  • Defer tax liabilities

For replacing existing loans, you have a few options. You could find a bank loan with a lower interest rate, or you may opt to replace unsecured loans with secured ones to lessen the interest rate.

Short-term loans are also considered a financial obligation. But a short-term loan for a small business can enhance the short-term financial health of the operation.

Replacing loans with guaranteed loans can also reduce your interest rate. But you also have the option to make repayments over a longer period of time, consolidate your loans, and use shareholder funds to reduce your debt.

Restructuring Assets

Just as you can restructure your liabilities, you can also restructure your assets. You could, for example, sell some of your fixed assets to lessen the long-term liability on your balance sheet.

You could also convert some of your necessary assets into liabilities. For instance, sell them to a finance company and lease them back.

Factoring invoices is also a good method for reducing the asset value of the invoice while raising cash. And you also might have the option to use investments or cash to pay back your loans.

Raising More Capital

Raising more capital is also an option to handle accrued liabilities and other long-term debt. While short-term liabilities and long-term debt may be off-putting to some, you may have the option to find more investors.

In some cases, issuing more shares to current investors may be the best solution to short-term debt and long-term debt. You may also have the option to borrow money from a lending institution or use accounts receivable factoring.

When it comes to considering your current liability and long-term debt in accounting, there are a few key things to remember. First, liabilities are all of the money that your company owes to other people. This includes debts, accrued expenses, and other short-term liabilities.

You may be able to check your asset list to determine whether you can convert them into more valuable assets. For instance, if your company owns the land its building is on, you may have the option to build offices or houses on that land.

If all else fails, you could always exit the business. This could involve selling your operation, going into receivership, or selling off your assets and utilizing the proceeds to handle all long-term liabilities and each current liability listed on your balance sheet.

FAQ for Liabilities in Accounting

What are examples of liabilities?

Some common liabilities include notes payable, accounts payable, accrued expenses, and income taxes payable.

What is the best way to reduce liabilities?

There are a few different ways to reduce liabilities. One is to restructure them, which can include changing the terms of your agreements with creditors or renegotiating loans. You could also raise more capital or sell assets.

What is the purpose of liabilities?

Liabilities are important because they show how much money your company owes to other people. This can include debts, accrued expenses, and other short-term liabilities. As a business owner, it’s important to keep track of these numbers and make sure you’re doing everything possible to keep them under control.

What are the different types of liabilities?

Some common forms of liability include notes payable, accounts payable, accrued expenses, and income tax payable. You may also hear these referred to as accounts payable.

Who creates a balance sheet?

A company’s accountant is responsible for creating a company’s balance sheet at the end of the fiscal year. However, as a business owner, you should be aware of how it works and what it includes so you can make informed business decisions.

What is the difference between liabilities and equity?

Liabilities are considered to be money that your company owes to other people —including debts, accrued expenses, and other short-term liabilities. Equity, on the other hand, is the money that your company is worth. This includes the total value of all of your assets minus all of your liabilities.

What is the difference between a long-term liability and a short-term liability?

Short-term liabilities are those that need to be paid within one year. Long-term liabilities are those that need to be paid over a period of more than one year.

What is the difference between a liability and a debt?

Debt is a specific type of liability. A debt is an amount of money that is owed to another person or entity.

What is the difference between assets and liabilities?

Liabilities are considered to be money that your company owes to other people. Assets are considered to be anything of value that your company owns, including cash, equipment, inventory, accounts receivable, and property.

What is meant by liabilities in accounting?

When a company refers to its liabilities in accounting, it means all of the money it owes to other people. This includes debts, accrued expenses, and other liabilities.

What are the four types of liabilities?

The four types of liabilities are notes payable, accounts payable, accrued expenses, and income taxes payable.

What is the primary focus of a balance sheet?

The primary focus of a balance sheet is to show a company’s financial position at a given moment in time. This includes detailing the company’s assets, liabilities, and equity.

Closing on Liabilities in Accounting

As a business owner, it’s important to understand the difference between assets and liabilities, because these numbers can affect your business’s debt load. The economic benefits your operation experiences could vastly differ depending on your liabilities.

If you would like to learn more about how liabilities work in accounting for cannabis growers and other cannabusinesses, feel free to contact us at Northstar. We implement generally accepted accounting principles while thinking outside of the box to create custom-tailored financial solutions for your business.

Cannabis Dispensary Profit Margin Insight

Cannabis Dispensary Profit Margin Insight

Operating a cannabis dispensary? Thinking about dipping your toes in the cannabis industry as a dispensary owner?

In this post, we cover everything you should know about operating a successful cannabis dispensary from a financial perspective.

Looking for expert assistance managing your legal cannabis business’s financials? Northstar is ready to increase your dispensary’s profitability!

Contact us now to learn more about how we’ll enhance your weed profits with the right financial services.

average dispensary profit margin example

What is the Average Dispensary Profit Margin?

Whether you’re operating in medical or recreational marijuana, your average profit margin is important. Besides the cost of opening a dispensary, other expenses exist – and these will impact your profit margin.

Medical and recreational marijuana cannabis dispensaries usually operate with an average net profit margin between 15 and 21 percent after accounting for taxes. However, equally important to note is that this percentage varies in accordance with state or provincial regulations.

The cannabis dispensaries distributing medical marijuana and recreational cannabis usually have the best net profit margin. However, creative recreational dispensaries can dominate the dispensary space, too.

Cannabis Industry Banking Fees

Operating Expenses

After your initial investment to open your doors, you’re ready to operate. But ongoing expenses can affect profitability.

Here’s a list of the expenses likely to affect your operating profit margin:

Operating Expenses cannabis dispensary jars of buds

Cannabis Real Estate

Besides the initial licensing fees for cannabis businesses, dispensaries should expect to spend at least $100,000 annually in rent. But if you find real estate for cannabis that requires renovations, this could increase the initial cost to $50,000 or more.

However, if the cannabis dispensaries locations are purchased outright, dispensary owners mainly have to worry about property taxes impacting their net profit margin. For additional insight, make sure to check out our post on buying commercial cannabis property.

Cannabis Industry Banking Fees

Part of your estimated annual revenue will go towards banking fees. It costs money to have your own growing business, but the cost of banking is higher in this grey-area space.

Since cannabis is still technically federally illegal in the US, many banks still refuse to work with dispensaries. However, it’s still possible to work with credit unions and private marijuana banks in some regions. Even with this being the case, some of these organizations will charge holding fees as high as $2,000 per month.

cctv and cannabis image

Electronics

Cannabis businesses need electronics to operate successfully. Each square foot of space could be holding thousands or even tens of thousands of dollars worth of inventory. So, you’ll need a security system and a fully compliant POS system to manage your inventory.

cannabis advertising

Advertising Budget

Advertising budgets in cannabis vary, of course. But, depending on your location, you may need to invest more than a quarter of your annual revenues in an advertising budget to compete.

cannabis lawyer attorney

Attorney on Retainer

While a dispensary makes money, these earnings don’t always come without risk. This is why it’s a good idea to have an attorney on retainer.

Dispensaries are especially vulnerable to lawsuits. Thus, having an attorney ready for a worst-case scenario situation is always ideal in this space. This could cost up to $50,000 annually.

cannabis dispensary employees staff

Employees

Even a smaller dispensary serving the adult market will need a team to operate successfully. Depending on the size of your cannabis operation, your annual payroll could be $250,000 or more!

Operating Expenses

How Much Does a Dispensary Owner Make?

How much a dispensary owner makes depends on several variables. For example, medicinal weed sales might earn more in one cannabis market than it does in another. However, in some spaces, medical marijuana might not be as popular as adult use.

Furthermore, your cannabis business might grow its own marijuana indoors. This would minimize your inventory cost while allocating some of your operating income towards elevated utility costs.

The money dispensaries or cannabis retailers spend on inventory varies. Some might spend more to supply stores with special medical-grade strains while others need to focus on stocking other cannabis products like extracts or edibles.

Operating dispensaries isn’t an exact science. But you can learn a lot from your sales data and use this to increase your annual revenue and average profit margins.

But how much money should you expect as a dispensary operator? If your business generates over $5 million annually, you could expect to pay yourself an annual salary of $500,000+.

how much does a cannabis dispensary in sales

How Much Does a Dispensary Make in Sales?

Dispensary sales are much like coffee shops; annual sales depend on several factors.

Think about the market competition. Dispensaries focusing on patient access to marijuana can run a profitable company. But they miss the adult-use market.

However, entrepreneurs interested in operating a dispensary in the recreational marijuana space will need a strong marketing campaign to acquire customers. Medical dispensary businesses will also need marketing, but the operation can become profitable based solely on word of mouth if they’re in the right location.

If a location is saturated, running a profitable marijuana business becomes more difficult. Business opportunities become more profitable with less competition, and this holds true in cannabis, too.

cannabis and money

Tips for Maximizing Dispensary Profit Margins

Find Your Break-Even Point

Use the break-even formula to determine your break-even point. This is the point at which marijuana dispensaries break even, meaning this is the minimum dispensaries must earn to continue operating.

Check each month’s revenue receipts to determine whether you’re within the threshold of breaking even. Marijuana dispensaries are notorious for having high inventory costs. But if you’re selling enough product to cover all costs and then some, your cannabis supply store could be running at a profit.

Research Your Competition

Marijuana prices have been dropping throughout the US. As more competition enters the space, more marijuana is available, and this drives the price down.

Look at your competition. They likely use professional packaging, sales, and digital marketing to increase their market share. See what you can do and how you can improve upon what your competition is doing.

Improve Your Product Offerings

Whether you operate a recreational cannabis supply store or a dispensary focused on medical marijuana, you’ll need to offer more than just cannabis.

You need unique and preferred dispensary products to stock your shelves.

You might even go the extra mile for your customers by offering their favorite infused snacks or drinks. You can win over customers by analyzing what the market demands.

For example, your average supermarket might notice that more customers are looking for organic items. To compete with the local Whole Foods Store, it might begin offering more organic options.

For a dispensary, you might notice that more people are looking for quality concentrates. If this is the case, sourcing these products from top producers could be a good idea. While you might need to charge a premium, you could maximize your profit margins by offering products no one else is offering.

The same goes for impressive flower strains, edibles, and other product offerings.

Offer Promotions

Doing promotions on a limited-time basis is a good way to increase dispensary sales. And if it’s something you can purchase in bulk at a great price, you could increase your profit margins tremendously with the right promotion.

For example, you can run a promotion offering a first-time discount on concentrates on first visits. You could even try implementing a loyalty program that offers customers high-quantity discounts for purchasing regularly from your dispensary.

You might also consider providing a daily deal. You could offer 50% off a single item or a free gram with a purchase of an ounce.

Streamline Your Operations

One of the simplest most direct ways to optimize a dispensary’s profitability is to make it more efficient. Identify your operation’s daily functions and look for ways to reduce costs. With the right system of checks and balances in place, you can ensure your business is operating as cost-effectively as possible.

Business owners should also make every effort to only carry the products they need. Being selective about inventory will help save on monthly carrying costs while minimizing costs related to these risks.

For example, if you’re already paying rent for space, using that space effectively can increase dispensary revenue and profits. What’s more, adding storage shelves or cabinets to that space can help you store more product, allowing you to purchase in bulk at a discounted rate.

Manage Your Inventory

Inventory control is one of the most critical aspects of operating a marijuana dispensary. Government regulatory requirements in the US demand dispensaries closely monitor their inventory. Without a POS system in place to manage inventory data in real-time, inventory audits and discrepancy reporting are nearly impossible, and this can result in costly compliance violations that put dispensaries out of business.

Also, if you lose track of what you have, you could find yourself with excess products and nowhere to store them. Or worse, if your records aren’t accurate, you could run out and jeopardize the health and well-being of your customers.

You can avoid these issues by ensuring that your inventory records are organized and up-to-date. This can also help you make better purchasing decisions moving forward.

Consider Costs

Staying mindful of dispensary costs is essential for success in this competitive industry. Profitability depends on bringing money in. But if costs become too excessive, this can become a serious problem.

Regularly monitor your dispensary expenses and make adjustments as needed. Focus on the expenses that have the most significant impact on the business’s profitability, and outsource critical non-retail operations to experienced professionals.

Think about your marketing activities and how you can enhance them. Use your sales data insight to get the most out of your marketing budget, as well.

Dominating the Cannabis Industry with Northstar

The marijuana industry is growing exponentially every year, and attracting more people to the market means that there’s room for many dispensaries to do well in spite of competition from larger businesses.

Looking to increase your dispensary’s profitability? Northstar scales dispensary profit margins successfully with the right financial guidance.

Contact us now to learn more about how we’ll grow your dispensary in this budding space.

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California Cannabis CPA Accounting Services

California Cannabis CPA Accounting Services

More often than not, cashing in on the cannabis industry can be tricky, especially when you’re new to this type of business.  It is also very likely that you’ll need assistance with organizing and filing your taxes if you come from a background in non-cannabis-related businesses.

Keep reading to learn how our experts minimize tax liability and maximize cannabis company profits with the right systems and procedures in place.

Looking for a cannabis CPA in California? Let Northstar lead the way!

Contact us now to speak with one of our tax and accounting experts about how to scale your operation with financial expertise.

california cannabis cpa

What is a Cannabis CPA?

A cannabis CPA offers tax and financial services for the people and companies operating in the legalized medical and recreational cannabis spaces in states throughout the country. These services involve handling taxes, business structuring, and obtaining financial support.

What does a cannabis CPA firm do for cannabis CEOs?

A CPA that exclusively serves cannabis companies understands the industry and the federal and local laws surrounding it. It’s always best to go with a specialized cannabis CPA firm as cannabis companies need more than generalized tax services.

The cannabis industry is a special sector, and as such, it demands industry expertise to ensure compliance. Accounting from public accounting firms has the potential to cause problems, even with something as simple as tax preparation.

While working with a cannabis CPA firm, cannabis CEOs partner with an accounting firm that understands cannabis accounting. From tax services to assurance services, someone who specializes in cannabis accounting will provide the proper guidance to ensure compliance with internal controls and industry-specific professional advice.

How do these ancillary services help cannabis CEOs scale their operations?

Cannabis accounting is a specialized field and should be treated as such. While the federal government has placed various restrictions on our cannabis clients, our mission is to handle all regulatory challenges in place to ensure appropriate tax planning and other services to cannabis companies.

Cannabis CEOs can rest assured that federal-level accounting issues never become a problem. By working with Northstar, CEOs operating in this industry are guaranteed compliance and ensure their businesses are always audit-ready.

The California Board of Accountancy (CBA) on Cannabis

The California Board of Accountancy (CBA) on Cannabis

The California Board of Accountancy (CBA) understands that a certified public accountant interested in providing accounting or advisory services to cannabis-related industries will need to understand this space. However, some advisory firms also have an interest in operating with cannabis clients.

At this point, the CBA is not able to issue legal opinions on cannabis accounting services. With this being the case, no position statement is to be issued by the CBA on this topic.

However, the CBA has issued some insight into operating a CPA firm that serves the cannabis industry. Here’s a quick FAQ that answers questions an industry-specific CPA firm might ask:

CBA Cannabis Industry CPA Firm FAQ

What is the new California law about cannabis that just passed?

California Governor signed Assembly Bill (AB) 1525, which took effect January 1, 2021. This bill provides a safe harbor for licensed individuals or firms that practice accounting if they render services to California’s cannabis industry.

The bill states that authorized persons or entities do not commit a crime under California law if they receive deposits or provide transportation and financial services to people licensed in commercial cannabis activity. However, the authorizations can be rescinded by the licensee at any time.

Can we accept a Licensed Cannabis Business as a client?

AB 1525 will take effect on January 1, 2021, and it provides that those who practice as a Certified Public Accountant in California can offer services to cannabis entities without it being considered criminal.

What are the potential risks of providing services to a Licensed Cannabis Business?

While it is legal to use cannabis products from state-licensed businesses in California and more than half the other individual states, they remain illegal federally.

Federal law states that any entity that supports illegal activity or accepts fees from it is engaging in racketeering. This means accounting firms, banks, insurance companies, and financial institutions may be breaking federal laws by doing this. It’s important to consult legal counsel before entering into such an arrangement because of the consequences.

Any other factors to consider when choosing to accept a Cannabis client?

In August 2016, the 9th Circuit Court ruled that medical marijuana laws are legal in accordance with state law. The federal government cannot prosecute people who grow and distribute medicinal marijuana under state laws because it would be unconstitutional to do so.

The decision to allow medical marijuana in the state of Arizona was based on a few factors. One factor is that Congress has passed laws preventing federal agencies from interfering with states’ implementation of their own statutes regarding medical marijuana.

As the differences between states and federal laws persist, Certified Public Accountants (CPA) are becoming more concerned with their professional liability insurance policies. In order to reduce the risk of a lawsuit or claim against them, CPAs should take note that there may be exclusions in their policies.

Cannabis Companies & Federal Law

Cannabis Companies & Federal Law

Cannabis companies must comply with state and federal law. But when it comes to laws at the federal level, cannabis accounting firms must know how to navigate them appropriately.

Business expenses for adult-use and medical marijuana-related operations are the same in both of these spaces. However, when it comes to deductions for expenses, these operations need a crafty accounting method to minimize tax liability.

As mentioned earlier, public accounting firms can cause problems with things as simple as tax preparation or filing returns. Accountants may be unwilling to work with companies working with or selling cannabis due to a lack of education and knowledge about the industry.

Accounting Services for Cannabis Business in Cali

Our cannabis accounting firm has a combined 120+ experience working with cannabis. As a full-service financial firm, we handle everything accounting-related for our clients.

From tax planning and compliance advisory services to ensuring our clients are committed to compliant practices, we’re here to help any legal business operators working in the cannabis industry.

Financial Services for the Cannabis Industry

Bookkeeping & Internal Accounting

We encourage efficiency and increase scalability long-term with our virtual accounting and tax offerings.

Here’s what you can expect:
  • Comprehensive & up-to-date books to offer the IRS everything they need to see in case of an audit.
  • Historical financial records cleanup to ensure all taxes and money owed have been handled appropriately.
  • Monthly reconciliation pack to ensure audit & investor readiness that helps companies bypass potentially critical issues.
  • Auditable & accurate cost accounting, including payroll management and other aspects of your operation that the IRS wants to see in your documentation.
  • Present monthly financial statements to keep the focus on your company’s success.

Controllership, Financial Processes, & Controls

The economic impact of COVID-19 has made these business accounting services more important than ever. With these our expertise in the cannabis sector, your business will meet its financial goals through improved governance and due diligence.

Here’s what you can expect:
  • Optimize financial systems in preparation for tax season.
  • Create & manage financial policies & procedures.
  • Internal & external audit preparation to satisfy the IRS and minimize tax liabilities.
  • ERP and IT system integrations to maintain adequate records of everything from the cost of goods sold to taxes.
  • Assess & manage financial risks to minimize tax liability and optimize money.

Chief Financial Officer (CFO) & Treasury

Northstar provides value to your business by improving inefficiencies, reduce expenses & enhancing earnings.

Here’s what you can expect:
  • Accounting and financial oversight for your cannabis business.
  • Cash-flow planning & management for your business.
  • Financial modeling & forecasting to set a roadmap for your business.
  • Key performance indicators & MIS dashboards to keep your business on track for success.
  • Strategic financial insight & analysis to keep the focus on your goals.

Investor & Board Management

Northstar gives advice and increases confidence for shareholders, board members, and company leadership. This leads to reliable partners that trust in your business as operators incorporate strategies that scale.

Here’s what you can expect:
  • Annual & interim reporting for sales, pay, distribution, and more.
  • Quarterly financials & business updates for the account.
  • Financial interface for board members & investors to focus on the success of the operation.
  • Board representation for partners.
  • Business decision support for everything, from costs and payroll to taxation, and more.

Fundraising & Development

Besides tax- and accounting-related services, Northstar will help you meet your short- and long-term capital goals. By structuring beneficial transactions and establishing crucial relationships, your operation will thrive.

Here’s what you can expect:
  • Robust financial modeling, equity valuation & capital-raising strategies.
  • M&A and strategic exit insight.
  • IPO support every step of the way.
  • Due diligence oversight to ensure the best decisions every time.
  • Business plans & investor pitch decks to showcase your operation to investors.

CEO Strategic Advisor

Northstar shapes and implements strategies to drive long-term profitability and support CEOs while enabling them to focus on their core mission: growing their cannabis businesses.

Here’s what you can expect:
  • Advice on business strategy.
  • Counseling on cash flow and capital structure.
  • Supporting/challenging business decisions for when you need it most.
  • Conveying business performance and concerns to the Board.

Cannabis Industry Success with Financial Services

Working with Northstar is easy. Visiting our website is the first step. Now it’s time to book your free consultation.

Schedule a time to speak with one of our experts and provide us with some insight into your operation. We’ll then develop the best strategy for your business.

Next, we’ll create customized solutions for your review. Once you’re happy with the plan, we’ll begin implementing it immediately.

Now it’s time to scale your business. The right systems, processes, and financial support will set your business up for ultimate success!

The Guidance Cannabis Businesses Need to Succeed

Looking to scale your cannabis company’s operations? Northstar is here to lead the way!

Contact us now to speak with one of our experts about how our California cannabis CPA services will grow your business in this budding space!

If you liked this article, make sure to check out our other articles, too!

Cannabis Banking California Insight

Cannabis Banking California Insight

The California cannabis industry has not come this far without feeling some growing pains. But, besides state law overregulating this industry, even a business operating with California law in mind has a serious obstacle to overcome.

Of course, we’re talking about the banking situation.

The Cannabis Industry Banking Dilemma

The financial relationship between cannabis operations and the finance industry has been strained. Due to the legal implications put in place at the federal level, banks and credit unions have not been able to provide safe harbor for these operations.

But as legal cannabis has expanded, more banks and credit unions have begun providing services that aim to enhance legal business in this industry. Even without the full support of President Joe Biden, California law has become more progressive for the legal cannabis space.

In this article, we discuss how California state laws regarding the financial industry have changed. While a business operating in cannabis used to have to operate on a cash basis, we see California opening the industry with its bill, the SAFE Act.

Looking for financial services to scale your business in California? Northstar understands that these services are core business necessities!

Stop operating on a cash basis! Contact us now to learn how we can provide a safe harbor for your business in the cannabis space.

cannabis banking california insight

Banking Options for Cannabis Businesses

Recently, the House approved a cannabis banking bill that has the potential to expand California’s cannabis industry. This legislation lets banks provide financial services to cannabis businesses in states that have already legalized cannabis.

The bill clarifies that the money earned by legitimate cannabis businesses is not illegal, directing federal regulators to create rules regarding how they will supervise cannabis banking activity.

Historically speaking, many banks have refused to work with cannabis companies. It’s even been a challenge to find a credit union willing to work with cannabis!

These financial institutions justifiably feared they could violate federal laws by working with cannabis operators, despite the existence of the legal cannabis industry.

With this being the case, few options – besides operating on a cash basis – were available for cannabis companies. Only a few financial institutions were willing to offer banking services, which meant many had to conduct business in cash.

What is the Safe Banking Act 2021?

The SAFE Banking Act of 2021 was a bill that the American Bankers Association lobbied aggressively to pass. This group wrote the following to lawmakers:

“Banks find themselves in a difficult situation due to the conflict between state and federal law, with local communities encouraging them to bank cannabis businesses and federal law prohibiting it. Congress must act to resolve this conflict.”

Through the SAFE Banking Act, the cannabis industry obtains access to banking services and other financial services. Financial institutions no longer have to fear that they’ll get penalized for providing these banking services to legitimate cannabis businesses.

Now that the SAFE Banking Act has passed, California cannabis businesses have more options for financial services than ever before. Rather than being limited to a handful of financial institutions and credit unions, those operating in the state’s cannabis industry have more accessible options in the banking industry.

California cannabis industry association on banking

California Cannabis Industry Association on Banking

Giving businesses the ability to access loans and other banking services is essential for any company. But for a cannabis business operator, these services have been hard to come by.

Due to the Controlled Substances Act that the federal government put in place, state financial institutions and credit unions have been hesitant to take on cannabis clients.

Handling marijuana-linked money is scary for other financial institutions, including many California banks. But despite many banking institutions refusing to work with adult-use and medical cannabis business operators, California law has enabled more access to banking services for the marijuana industry.

CCIA Partnership with North Bay Credit Union

The California Cannabis Industry Association has also announced its exclusive partnership with the North Bay Credit Union. Through this partnership, CCIA members have direct access to banking, which has allowed licensed cannabis businesses the opportunity to get the banking services they need.

The struggle to pay staff and vendors without access to financial institutions encouraged this partnership. Even though many cannabis companies operate compliant businesses, they lacked access to banking.

The CCIA, a state and federally registered nonprofit trade association, lost its third bank account in a year during 2017. The association then decided to partner with the NBCU to gain access to the financial services it had been denied.

Through this partnership, members of the CCIA were able to bypass the financial institutions that refused to provide marijuana companies with wire transfers, ACH processing, and other banking services. Now, members of the CCIA have various banking options, including access to:

  • Checking accounts
  • Online bill payment
  • Wire transfers and ACH processing

Even the employees of CCIA members have access to these services if they join as individual members of this credit union.

Financial Crimes Enforcement Network Marijuana Banking Update

According to the Financial Crimes Enforcement Network (FinCEM), the number of financial institutions banking for licensed cannabis businesses has shown a slight decline since the 1st Quarter FY2020 (December). This began with the release of FinCEN’s guidance for providing financial services to those operating hemp-related businesses.

However, it’s possible that the COVID-19 pandemic is increasing this decline for the following reasons:

  • Many adult-use cannabis and medical marijuana dispensary operations have ceased operations because of government-imposed quarantine restrictions.
  • Even though the 90-day window for filing Suspicious Activity Reports is still in place, more financial institutions lack the staffing needed to file these reports efficiently. This has caused delays.

Cannabis Industry Banking FAQ

Can dispensaries in California use banks?

Since financial institutions are at risk while offering services to dispensaries, many choose to avoid working with them.

Thus, many California dispensaries have not been able to use direct deposit, checks, and credit card transactions. But what’s worse is how many dispensaries have had to resort to solely accepting cash or cryptocurrency.

Will banks finance cannabis?

Traditional banks are not willing to lend to Cali cannabis businesses. With this being the case, federal legalization could change this. But with the Safe Banking Act’s passing, cannabis businesses can now find reliable capital sources.

Concluding on Cannabis Banking in California

Whether you operate in Santa Rosa or Los Angeles, banking has likely been an issue for you if you operate a cannabis business. But with the passing of the Safe Banking Act, the industry now has more options than ever before.

Since the passage of this bill, more financial institutions have begun offering services to cannabis companies. But it’s important to be aware that many individuals within these institutions still have mixed feelings about supporting dispensaries.

Nevertheless, California cannabis business owners should keep their eye on the future. With more banks finally willing to work with them, prospects are looking brighter than ever before.

Interested in scaling your California marijuana business? Your experts at Northstar are ready to help!

Contact us now to learn how our financial services will expand your operations and minimize your tax liability in California.

We noticed you enjoyed reading about cannabis banking in California. If you liked this article, make sure to check out these other articles, too!

Cannabis Financing Ideas to Scale

Cannabis Financing Ideas to Scale

Whether you’ve recently decided to start a cannabis business or have been in the industry for years, raising capital can be one of the most challenging aspects of the entrepreneurial experience. However, it’s particularly difficult to finance cannabis businesses because the industry is still gaining its footing.

But why?

The cannabis industry is still very young, and there are ways that entrepreneurs are getting creative with financing ventures. In this article, we explain how you can use cannabis financing effectively, cannabis business lenders and investors, loan types, and more.

Looking for expert assistance managing your cannabis business’s financials? Northstar is here to guide your success!

Contact us now for the help you need to ensure consistent cash flow and successful scaling.

cannabis financing flower notes

How to Use Cannabis Financing

Cannabis financing is just now taking off in this young industry. Funding is essential for development, and for those who don’t have deep pockets, finding a source of cannabis business funding is crucial for success.

But acquiring a cannabis business loan is only part of the complexities surrounding this topic.

Cannabis business owners that obtain a cannabis business loan need to have a plan to become profitable. Or, if the operation is already turning a profit, how to increase those profits to ensure any cannabis loans can be paid back while scaling those profits.

Have you considered how to effectively utilize your cannabis business loan to ensure success? Here are some ideas marijuana businesses can utilize:

cannabis facility construction

Facility Construction

Whether cannabis businesses focus on recreational marijuana, medical marijuana, or operate as one of the many ancillary cannabis companies, facility construction can play a role in operational success.

Cannabis business owners are unlikely to find a facility that’s completely ready to operate. While the facility might come close to perfection, some investment will be essential to ensure it’s ready to operate – unless it’s an M&A for an established operation, of course.

However, if you’ve already found your property and need to build a facility, this will cost money. Your facility will need to meet the needs of your cannabis business, and allocating some – or even all – of your business loan may be essential to ensure your business can begin operating.

hiring more staff with cannabis financing

To Hire More Staff

Solopreneurs aren’t common in cannabis. Most of the time, financial institutions willing to offer a small business loan to cannabis business operators will want to learn more about your team before offering to finance your cannabis business.

However, even with a winning team in your corner, hiring more staff can facilitate multiple areas of growth for your business. With this in mind, it may make sense to obtain a loan and use some of the proceeds to hire staff – particularly, technical staff if it’s not an area you’re familiar with yourself.

social media marketing using cannabis loan

Marketing & Advertising

Cannabis business loans are also allocatable towards marketing and advertising cannabis businesses.

Even if you have a marketing budget, think about how your business will spend its dollars wisely – and whether it’s necessary to pay for all of that marketing or if attracting more customers can be done with less investment out of your business’ budget.

This can also apply to any ancillary cannabis-related businesses. Pushing business financing towards marketing and advertising has the potential to give a cannabis business the fuel it needs to succeed, and if it results in an excellent ROI, it becomes easy to justify the expense.

improving cash flow with a cannabis business loan

Manage Cannabis Business Cash Flow

Business cash flow is a concern for any business owner. But for cannabis business funding, it becomes even more essential to consider.

Cash flow is the money that comes in and out of a business on a regular basis. For businesses operating in this space, this can be especially useful when it comes to paying for inventory – and if you have trouble funding your business with your current revenue, managing your business cash flow may become even more important than making strategic investments to grow your cannabis business.

open a new location ribbon cutting ceremony

Open a New Location

Your cannabis business might be doing increasingly well with each passing month. But at some point, there’s a chance you’ll want to open a new location.

This is where business loans can remove some of the wait time for business owners in the process of scaling their cannabis companies.

Rather than saving money to expand marijuana businesses, savvy ganjapreneurs obtain business loans to finance their new location. This has the potential to increase revenue significantly while the cannabis business pays back the business loan over time.

equipment leasing cannabis industry

Equipment Financing and Leasing

Equipment financing has become commonplace in the cannabis industry. Rather than investing thousands of dollars to obtain the necessary equipment to conduct business, these financing solutions allow business owners to pay for the tools they need over months or even years.

For example, a cultivation operation lacking cannabis business funding can use equipment financing to pay for the cannabis grow lights, cultivation equipment, and irrigation systems they might need to start their business.

Equipment leasing works similarly. Rather than purchasing equipment outright, many businesses go with an equipment leasing option to obtain the necessary tools and machinery they need to get started.

hiring lawyers, accountants, and other professionals specializing in cannabis

Lawyers, Accountants & Other Professionals

Hiring a lawyer or someone to handle cannabis accounting can be essential for any cannabis business – especially if it’s your first time operating in this industry. However, engaging the services of a professional doesn’t always come cheap.

While a lawyer or CPA can help you avoid cannabis compliance-related legal trouble, they also charge fees for their time. If your cannabis business is just getting started, it might make sense to obtain business loans and use the funds to hire professionals who can assist in areas that aren’t up to par with industry standards.

Software & Security Systems

Compliance is crucial in the cannabis industry, and many states require cannabis businesses to use specific software and security systems, especially if they’re a hands-on operation. For example, METRC is essential if your business operates in one of the legal cannabis states that use it.

Using cannabis business loans for software and security systems can be ideal if you don’t have cash on hand. It’s also important to consider long-term planning and how using a business loan for this type of investment can result in savings over time.

cannabis business loan

Cannabis Business Loans

Where to get Cannabis Business Loans

Cannabis businesses might find it challenging to get small business loans. However, options for business loans exist. While cannabis business funding might take some creativity, business owners can acquire the capital they need to scale their operations in the cannabis industry.

The federal government has made it increasingly difficult for cannabis industry participants to obtain loans, whether for medical marijuana operations or business owners handling recreational cannabis.

Here’s are some of the most common sources for cannabis business loans:

Financing Company

Cannabis business financing options are available to this elevated space. But cannabis business financing solutions are still quite limited.

Business owners can check with several traditional lenders to see if that will work. But a financing company willing to offer cannabis business loans is usually one of the best methods for business funding.

Diamond Business Loans is one financing company operating out of California. This business helps cannabis startups and established operations find business funding through three main programs. The company offers an unsecured capital program, an equipment program, and a commercial real estate purchase program.

Other financing companies offer cannabis business loans, too. Some of these include Dynamic Alternative Finance, GoKapital, Small Business Funding, and United Capital Source.

Venture Capital Firms

Venture capital firms are becoming increasingly common in cannabis. This sort of funding is a good option for small business owners operating in the marijuana industry who would prefer to avoid taking on debt.

Equally important to understand is that a marijuana industry business owner that accepts funding from a venture capital firm is diluting his or her ownership percentage of the business. Thus, if your business is already earning money, it could be best to look for revenue-based business loans instead.

Most small business owners in the marijuana industry look at many grow facilities lenders and alternative lenders before choosing from the VC firms that are willing to work with a cannabis company. However, for those looking into these funding options, Casa Verde, Tuatara Capital, L.P., and Privateer Holdings are the VC firms that invest in the most cannabis and hemp businesses

Cannabis Business Loan Types

Small Business Loans

Small business loans are offered by banks and other traditional lenders to small businesses that need capital but operate outside of the cannabis industry. While funding options for this space are limited at many of the financial institutions regulated by the federal government, a cannabis business owner might still be able to find a small business loan.

Business owners seeking financing through banks or credit unions might obtain a loan based on their company’s revenue, cannabis equipment, assets, or personal guarantee.

The good news is that there’s increasing interest in offering cannabis loan options to small businesses. Meanwhile, some banks are starting to look at these companies as potential clients and offer cannabis business loans.

Business Cash Advance Loans

Some financial service providers may offer a merchant cash advance. However, this is usually one of the most expensive forms of alternative financing, and small business owners are usually better off steering clear of these cash advance options.

Cash advances are only recommended in extreme situations when no other options are available. It’s quite easy for a marijuana business to get behind when they choose to take a cash advance, and it’s important to remember that a business cash advance should be considered as a last resort.

Real Estate Loans

Commercial real estate leasing isn’t always an option for cannabis. Federal government restrictions on these operations make it less appealing to rent the property out.

This is where real estate loans can offer a cannabis business owner the option to buy real estate.

A real estate loan involves a formal loan agreement that helps a business owner purchase property and pay back the loan over time with interest. The loan proceeds to get paid off, and most business owners have a plan in place to ensure they have the capital to make the payments through their day-to-day operations.

Cannabis Working Capital Loans

Another type of cannabis loan is the working capital loan. These types of loans offer financing options for daily operations and are often an attractive option because they don’t require collateral, although the lending institution will review your cash flow and personal credit score to determine whether or not you qualify for a loan.

If your cannabusiness requires more funding than is offered by other commercial real estate financing options, it may be time to look into a working capital loan.

Cannabis Acquisition Loans

Cannabis acquisition loans are available in the cannabis industry, and some of these financing options can help a business owner purchase real estate or other assets.

These loans offer less debt than what’s found with typical acquisition loans, making them more attractive to those who are interested in large-scale operations. Cannabis acquisition loans are secured against property owned by business operators; therefore, this type of financing is only available when a business operator owns real estate.

Bridge Loans

Bridge loans can help a business owner acquire more funding when they need it most.

These loans provide the financial support that’s needed to purchase more inventory or property without having to pay for anything upfront.

Once a loan has been approved, business operators can keep their day-to-day costs low until capital raises have been made and other financing options have been considered.

Bank Loan

A bank loan is another type of financing that’s available to marijuana businesses. But these loans have the fewest options as compared to other types of cannabis loan products.

A bank loan is also one of the most difficult forms of financing for a cannabusiness owner to obtain because banks are usually resistant to offering these products unless they’ve already received approval from their federal government regulator. Regardless of business credit or your credit score, most businesses in this space will have difficulty getting a bank loan because of federal regulations.

Private Loans

Private loans are a popular funding option for cannabusiness owners.

These loans are usually offered by family members or friends who wish to offer financial support without any strings attached. The simple nature of these loans can help business operators secure the funding they need within days and keep their day-to-day costs low until revenue has been raised.

Term Loans

Term loans are often used in the cannabis industry because they offer a fixed, predictable source of financing.

These loans are secured by an underlying asset, and interest rates can be adjusted over time. This offers business operators another way to secure funding for a positive cash flow situation with little risk involved.

SBA Loans

SBA loans are one of the most popular financing options for new businesses in the cannabis industry.

The Small Business Administration (SBA) offers funding to cannabusiness owners who are interested in starting a business from scratch or purchasing real estate that would otherwise not be available to them with traditional lenders. The SBA has numerous guidelines and restrictions surrounding their loans, but if approved, these loans can help business operators secure enough capital to open doors and get started.

cannabis and money

Cannabis Business Financing Solutions

Financing exists in this elevated space. Here are a few we recommend exploring if you aren’t already:

Invoice Financing

Invoice financing is a form of financing that helps cannabusinesses generate enough capital to pay their employees, taxes, and other business expenses.

Invoice financing is also beneficial for those who need help generating revenue because it allows them to purchase inventory upfront using an invoice rather than waiting for customers to pay.

While some companies might base their invoice financing options on a cannabusiness owner’s credit score, business credit usually works for the purpose of invoice financing.

Equity Financing

Equity financing for cannabis businesses is also a popular option. The majority of businesses in this space aren’t eligible for traditional financing products because the legal regulations surrounding cannabis are so new.

Equity financing allows business operators to access funds from investors without paying any fees upfront. This form of financing is often provided to cannabusiness owners who already have a positive cash flow and need capital to help them scale their operations and bypass traditional lending guidelines.

Personal Credit

If you have a high credit score, besides being eligible for cash advances, you likely have good personal credit. This form of credit can also be used as business credit.

Your business credit the same as your credit score and can be used for financing purposes such as investing in a cannabis company or borrowing money to purchase cannabis equipment.

Cannabis Lenders

The SAFE Banking Act has lessened the restrictions for cannabis lenders at the federal level. While many lenders still refuse to see those working with cannabis value as a potential customer, the fact that restrictions have eased at the federal level is enough for some lenders to allow cannacompanies to open a bank account and use these services.

Lenders may offer solutions to allow cannabusiness operators to purchase new or used equipment, property, and other expenses. But it’s important to remember that not all lenders are willing to provide loans to cannacompanies.

Alternative Lenders/Investors

Alternate lenders and investors are equally important to consider. Here are some of the options available for cannabis:

  • Family Offices
  • Cannabis specific funds and a few hedge funds
  • Angel investors
  • High net worth individuals
  • Musicians, athletes, and other celebrities
  • Business incubators and accelerators
  • Industry-specific holding companies

Crowdfunding

Recently, people have been using crowdfunding to start new businesses. There are many crowdfunding platforms available.

For example, some of the platforms cannabusinesses can use are Indiegogo and Kickstarter. Indiegogo has approved some cannabis companies for raising money through their platform.

Other known platforms include StartEngine, which has also approved funding requests for cannabis startups. Lastly, SeedInvest is a platform that welcomes cannabis companies to participate.

cannabis and money cannabis financing

Concluding on Cannabis Financing

Whether you need to purchase property, don’t have working capital, are looking for a way to get the equipment you need, or something else, financing options are available. Hopefully, you’ve found the financing solution your cannabusiness needs in this article.

While the credit unions are beginning to support cannabusinesses, raising capital can be challenging for these operations. The space is still young, and as it matures, we expect to see more financial institutions offering support to elevated businesses.

Northstar: Guiding Cannabis Industry Success

Looking for expert financial guidance in the cannabis space? Northstar is here to guide you!

Contact us now for the financial services your operation needs to scale its success!