Wondering what a cannabis CFO service entails? You’re in the right place!
If you’re visiting this page, you’re likely wondering what a cannabis CFO service entails. As more competition enters the space, it becomes even more essential to have your operation’s financials handled appropriately.
In this post, we cover what our cannabis CFO services include and how to choose a cannabis CFO. Keep reading for the cannabis CFO service insight you need to make the right decision for your company.
Northstar Financial Consulting Group Cannabis CFO Services
Northstar Financial Consulting Group cannabis CFO services help you make the best possible decisions for your company. We help dispensaries, manufacturers, and distributors – as well as private equity investors – stay ahead of the curve with our cannabis CFO service offerings.
Our virtual cannabis CFO service typically includes:
Comprehensive budgeting and forecasting techniques ensure your business is making smart financial decisions now and in the future.
Coordinating with your company so you have all your financials in one place. This ensures everyone is on the same page, increasing transparency within your operation.
Continuous monitoring of how your business performs against its budgeted expectations. We help ensure you don’t fall behind or overspend during the course of the year.
Creating a cannabis industry-specific report that compares your business’s performance to the entire industry. This ensures you have an accurate benchmark for growth and future decision-making.
As more states legalize medical and recreational use, the cannabis industry is set to explode over the coming years. Your business needs someone who can help it grow as competition increases – not fall behind.
Contact us today for a free consultation and learn how we can help your business scale in this competitive space.
How to Choose a Cannabis CFO
Choosing a cannabis CFO is more complicated than it might seem on the surface. Companies in this space need someone who knows the industry inside and out – not just someone who incorporates accounting principles based on some off-the-shelf course they took online.
It’s also important to find someone who understands that “right-sized” is a moving target. Your operation will grow and change as your company matures – you need a cannabis CFO that can keep up with those changes. But there’s more to it than that.
Here’s what you should look for in a cannabis CFO:
Experience
A successful candidate should have experience working with cannabis companies, ideally over the past few years. You don’t want someone who last worked with a cannabis company back in 2014 when the industry was very different from what it is today.
Industry Expertise
Beyond just knowing about this specific industry, you need to know that your cannabis CFO actually cares about the industry. Not just because it’s growing, but where it’s headed in the future.
Accounting Expertise
This is important for obvious reasons, but especially if your operation only deals with finances part-time or has a director of finance who wears many hats. You need someone you can trust to give you accurate information about your financials.
Compatibility
You need to be able to work with your candidate easily, without constantly having to micromanage them or check up on what they’re doing. They should understand your business’s needs and how it operates so that they can handle everything for you.
Before making a final decision, you also need to consider:
Bigger Picture
Of course, you want someone with the right experience and expertise for your business. But what if one candidate is perfect in all respect except salary? You may need to sacrifice slightly on salary or benefits to ensure your new cannabis CFO will be a good fit for your company. Or use that as leverage to get the candidate you want, but on better terms.
Location
You may need to consider what candidates are located in your area or willing to relocate for the job. If your business only has two locations in the entire U.S., it’s unlikely you’ll find someone willing to move across multiple states for a job when they already have a job they’re happy with.
Finding a cannabis CFO can either be the easiest or most difficult part of setting up your business. Don’t rush this process and you’ll have no problem finding someone who can help your company grow from day one.
Northstar Accounting & CFO Services
Northstar Financial Consulting Group is an outsourced cannabis CPA firm, providing CFO/Controller services to new start-ups and long-term cannabis companies in need of some financial guidance. From setting the groundwork for new operations to restructuring the foundations of established businesses, we set our clients up for success now and plan for profitability in the future.
Our unique fractional cannabis CFO services give our clients the freedom to scale up or down, which we’ve found is vital for this evolving sector. Whether you need to increase your part-time cannabis CFO services for tax season or go lean as you need to allocate funds elsewhere, Northstar is here to support your company.
Looking for help growing your business? Contact us now to speak with one of our experts about how we’ll scale your operation in this budding space.
Ever wondered if your operation needs a CFO for national cannabis brand success? You’re in the right place!
Your Chief Financial Officer will keep your company grounded financially. This individual is in charge of managing your operation’s financial actions, and this ultimately impacts the company’s profitability – among other aspects of the operation.
In this post, we cover how a CFO for a national cannabis brand will enhance its success. You’ll learn all about what a cannabis CFO does, how these actions contribute to your operation’s scalability, and more.
At Northstar, we know that the right cannabis CFO will put any cannabis brand on track to dominate its share of the market throughout the country. Contact us now to learn how we’ll scale your brand with data and the right financial insights.
What Does a Cannabis CFO Do?
If you’re new to CFO services, you’re probably wondering how a CFO for national cannabis brand scalability works. But this first involves fully understanding what we do as your brand’s cannabis CFO.
As your cannabis CFO, we manage all of the financial actions of your company. This includes tracking cash flow, which is essential for compliance in this developing legal marketplace. But we also handle your operation’s financial planning while analyzing its financial strengths and weaknesses.
Each time we analyze your company, we propose corrective actions to keep it on track for success. We understand your operation’s goals and create a plan to implement the right financial actions to help it achieve them.
What Does a CFO for National Cannabis Brand Success Mean?
The question isn’t whether your company needs a CFO for national cannabis brand success. But rather, what kind of CFO does a cannabis brand need to go national?
A cannabis CFO and CPA team that has experience working within this space can help you expand your operation across the country. This background ensures all aspects of your financials, from setting up a lab and grow ops to following legal actions in each state where you operate, are appropriately handled.
But How CFO Services for National Cannabis Brand Scalability Work?
Now that you know what CFO services do, let’s take a deeper look at how these actions contribute to your brand’s success. We implement the following actions as your cannabis CFO:
Cash-flow Management
Tracking cash flow is essential for compliance throughout this developing legal marketplace. As your CFO focused on your national cannabis brand’s scalability, we must maximize your company’s profits while operating within the constraints of compliance.
We make cash-flow management easier by analyzing it on a regular basis. This allows us to better manage these flows for future profit maximization while staying compliant with state and federal laws.
Financial Planning & Management
As your cannabis CFO, we create a financial plan to take your brand national. Not only should you expect increased profits as we manage your cash flow, but we’ll also lay the groundwork for long-term success through the analysis of data that spans far beyond your present operations’ financials.
Analyzing your company’s financial strengths and weaknesses is helpful when you’re expanding to new markets. We’ll present any issues we identify so we can adjust them before scaling your operation nationally.
Insight into Current Trends & Statistics
As your CFO for national cannabis brand scalability, our C-level expertise allows us to offer insights into the industry as a whole. We maintain relationships with C-level professionals throughout this growing marketplace to remain up to date on all financial trends and upcoming regulatory changes.
Analyzing this information can help your cannabis brand take advantage of legal progress as it happens while staying compliant with regulations. We’ll also use these insights to improve our cash-flow management so you can scale with the greatest success while maintaining compliance.
Looking for a CFO Focused on National Cannabis Brand Scalability?
If your cannabis brand is looking to expand into new markets and increase profits, our CFO services are here for you. We’re ready to plan and implement these financial actions at any stage of development.
Our cannabis CFOs work with all types of cannabis brands. Contact us now to speak with one of our experts and learn how we’ll grow your brand across multiple states.
The Michigan recreational purchase limit impacts consumers and dispensary operators. From the consumption side, this is the limit for how much cannabis and cannabis products can be purchased at the retail operations. However, from the dispensary operator side of things, these regulations govern how these operations can serve consumers.
In this post, we cover the ins and outs of the Michigan recreational purchase limit, what’s involved, and other insights for consumers and adult-use dispensary operators.
Looking for help scaling your dispensary’s operations in Michigan? Northstar is ready to help!
Contact us now to speak with one of our experts about how we’ll grow your business in this budding space.
Michigan Recreational Dispensary Requirements
As Michigan cannabis CPAs, we hear questions about adult-use (or recreational) marijuana from both dispensary operators and consumers. As recreational marijuana in Michigan continues to gain traction and expand throughout the state, more business owners are looking to get involved as consumers continue to purchase Michigan cannabis products.
However, now that the caregiver products produced under the Michigan Medical Marihuana Act are no longer allowed in the adult-use system, marijuana flower and processed cannabis products are in short supply. This has resulted in the prices for recreational marijuana in Michigan rising. Even cartridges have begun to retail for over $100 in some areas.
Even though there’s a shortage of recreational cannabis in Michigan, it’s important for consumers and dispensary owners to know about the dispensary requirements in place. Here’s what you need to know:
Who can buy marijuana in Michigan?
Anyone over the age of 21 holding a valid ID is allowed to visit recreational marijuana dispensaries in Michigan. The majority of these retail operations mainly accept cash for payment. However, some are starting to accept electronic payments, too.
With COVID’s impact on the state, many marijuana dispensaries have been forced to change their ways. Many now offer curbside pickup and delivery options, thus facilitating transactions. Consumers can even make their purchases online and pick up their products from the dispensaries without getting out of their cars.
Michigan Recreational Purchase Limit Non Resident
The Michigan recreational purchase limit nonresidents can expect is the same as residents. This means any adult 21 years of age or older is allowed to purchase up to 2.5 ounces of cannabis flower (or the equivalent in cannabis products). However, consumers are only allowed to buy up to 15 grams of cannabis concentrate. This is on a per-transaction basis.
Dispensary operators must respect these regulations, as well. They need to track everything sold in the state’s tracking system, making it rather easy to determine how much product a consumer has purchased in a day or month.
Michigan Recreational Purchase Limit FAQ
How much can you buy at a dispensary in MI?
Any adult 21 years of age or older is allowed to purchase up to 2.5 ounces of cannabis flower or the equivalent cannabis product in a single transaction. Keep in mind, if a consumer plans to buy cannabis concentrate, they’re limited to 15 grams.
How many grams can you buy in Michigan?
Two and a half ounces of cannabis flower is equal to 70 grams. Thus, if someone is purchasing pre-rolled joints, this is equal to around 35 0.5-gram pre-rolls. Consumers are also allowed to buy up to 15 grams of cannabis concentrate.
How many vape carts can I buy in Michigan?
Michigan recreational cannabis dispensaries can sell up to 15 vape carts to consumers. This is the equivalent of two and a half ounces of cannabis flower.
Can I hold a recreational cannabis license without owning a medical marijuana facility?
Recreational marijuana in Michigan is evolving to satisfy dispensary owners and consumers. The current law only permits certain recreational licensure to those who don’t already own an active medical marijuana facility. These include Class A grow (100 plants) and microbusiness (150 plants, processing, and retail).
This has been especially problematic for those looking for more recreational marijuana dispensaries in Michigan. Of course, this is frustrating for consumers and would-be dispensary owners. Many entrepreneurs have stopped applying for recreational dispensary licenses, especially in municipalities that have chosen to allow adult-use cannabis but have yet to opt-in under the MMFLA.
As of March 1, 2021, the MRA has opened the recreational marijuana licensing process in Michigan to all applicants, even if they do not hold an MMFLA license. With this being the case, anyone interested in applying for a Class C Grow license, retailer license, or another marijuana license is finally able to do so without the previous limitations.
With this in mind, we expect to see more recreational marijuana dispensaries and microbusinesses in Michigan. Thus, we can expect more innovations, products, and brands in these adult-use dispensaries.
Closing on Michigan Recreational Purchase Limit
The Michigan recreational purchase limit is in place to ensure that consumers enjoy cannabis responsibly. Just as in any other legal state, adults are limited to the purchase amounts of cannabis flower and concentrates.
As more cannabis dispensaries are expected to open their doors throughout Michigan, it’s important that every consumer knows these rules and regulations before making a purchase. But it’s equally crucial for dispensary operators to understand these regulations, too.
The best way to avoid being penalized is by understanding what you and your customers can and cannot do. This is a sure-fire way to avoid costly infractions and remain operating profitably.
Looking to scale your recreational cannabis dispensary in Michigan? Northstar is ready to help!
Contact us now to speak with one of our experts about growing your operation in this budding space.
Is there a dispensary purchase limit Michigan residents and visitors must know about?
Yes. But it’s equally important for the dispensary operators to understand these limits, too.
The regulatory requirements for dispensaries in Michigan must be respected. Without adhering to these rules, cannabis dispensary operators may find themselves facing costly infractions – or worse!
With this being the case, this post will cover everything consumers and dispensary operators need to know about the dispensary purchase limit Michigan has in place.
So, let’s dive on in!
MRA – Rule 41: Daily Purchasing Limits Michigan
Michigan dispensary licensees must verify using the statewide monitoring system prior to selling or transferring marihuana products to registered qualifying patients or registered primary caregivers. This is how they determine whether the sale or transfer will or won’t push the buyers beyond the daily dispensary purchase limit Michigan has in place.
The dispensary purchase limit Michigan regulates is:
Every registered qualifying patient is allowed to purchase 2.5 ounces or less of marihuana daily.
Every registered primary caregiver is permitted to purchase up to 2.5 ounces of marihuana per day for each registered qualifying patient with whom the caregiver is registered to serve through the department’s registration process.
On October 22, 2019, the Michigan Marijuana Regulatory Agency posted an Advisory Bulletin further outlining the purchasing limits for medical and adult-use marijuana facilities. It states as follows:
The daily dispensary purchase limit Michigan enforces is the same as explained above. Sales or transfers of marijuana products to registered qualifying patients or registered primary caregivers cannot go beyond the 2.5 ounce daily purchasing limit per registered qualifying patient.
Furthermore, a monthly limit is in place, too. This states that sales or transfers of marijuana products to registered qualifying patients – regardless of whether it’s directly or through the patient’s registered primary caregiver – cannot be beyond the monthly dispensary purchasing limit of 10 ounces per month per registered qualifying patient.
For usable marijuana, the state’s daily purchasing limit for extract, resin, and flower goes by weight. However, for marijuana-infused products like tinctures and edibles, dispensaries must follow the usable marijuana equivalency conversion as outlined in the Michigan Marijuana Act.
Growers or processors need to examine the net weight or volume of their products with Rule 61 in mind. The products can be sold with one another. However, the purchase cannot go beyond the patient’s daily purchasing limit.
For solid marijuana-infused products like gummies and chocolate, 16 ounces is equal to one ounce of usable marijuana. For liquid marijuana-infused products like topicals and tinctures, 36 fluid ounces is equal to one ounce of usable marijuana.
For instance, if a registered qualifying patient wants to buy an ounce of flower, five vape cartridges that weigh .5 ounces together, and two brownies that each weigh 8 ounces, the transaction is equal to the 2.5-ounce daily purchasing limit in Michigan.
Dispensary Purchase Limit Michigan FAQ
How much can you buy at a dispensary in MI?
Michigan dispensaries are allowed to sell consumers up to 2.5 ounces of usable marijuana per day. Keep in mind, marijuana-infused products have ratios that equal 2.5 ounces of usable marijuana, and you’ll be permitted to purchase as per these ratios outlined above.
How many grams can you buy in Michigan?
Since you can purchase up to 2.5 ounces of marijuana per day in MI, you’re able to buy up to 70 grams of cannabis flower per day.
Can I go to a dispensary without a card in Michigan?
Michigan has dispensaries that sell to adults 21 years of age or older. Thus, if you don’t have an MMJ card in Michigan, you can still go to a dispensary.
Do dispensaries keep track of how much you buy?
Yes, the statewide tracking system allows dispensaries to keep track of how much cannabis and cannabis product they purchase. With this being the case, consumer limitations are in place and tracked to ensure sales do not exceed what’s permitted by the state.
Closing on the Dispensary Purchase Limit in Michigan
The dispensary purchase limit Michigan has in place is tracked using a statewide system. Thus, dispensaries must input every sale.
Like every state with legal cannabis, Michigan’s regulations are strict. But dispensaries that follow these rules have the potential to scale their operations legally while supplying quality product to patients, caregivers, and recreational cannabis consumers.
Looking to scale your dispensary in Michigan? Northstar is here to help!
Contact us now to speak with one of our experts about how we’re grow your operation in Michigan’s budding cannabis space!
In this post, we address the question, “Is marijauna legal in Michigan” in full to examine how businesses have evolved and will continue their expansion in the Great Lake State.
Looking for help scaling a marijuana business in Michigan? Northstar is ready to help!
Contact us now to learn more about how we’re growing legal marijuana businesses in Michigan’s budding cannabis space.
Is Marijauna Legal in Michigan?
Marijuana Prohibition in Michigan
Before Michigan legalized marijuana, possession of any amount of cannabis was a misdemeanor offense. This was punishable by as long as a year in prison and a $2,000 fine. However, the actual use offense used to be punishable by as much as 90 days in jail and $100 in fines.
Possession in public parks could land a violator a sentence of up to two years in prison and up to $2,000 in fines. But the distribution of cannabis without remuneration was a misdemeanor that could result in a sentence of one year in jail and up to $1,000 in fines.
Selling and cultivating cannabis was a felony charge. This could have gotten individuals up to 15 years in prison and up to $10,000,000 in fines. But this all depended on the number of plants the person was growing and the amount of usable cannabis he or she sold.
Municipal Cannabis Reforms in Michigan
Before Michigan cannabis legalization, cities throughout the state decriminalized cannabis. Some even de-prioritized the enforcement of marijuana laws.
The cities that began putting these reforms in place from 1972 to 2015 include Ann Arbor, Kalamazoo, Detroit, Flint, Ferndale, Jackson, Lansing, Hazel Park, Oak Park, Berkley, Huntington Woods, Mount Pleasant, Pleasant Ridge, Port Huron, Saginaw, East Lansing, Keego Harbor, and Portage.
Medical Marijuana Legalization in Michigan
Medical marijuana legalization in Michigan happened with the passage of Proposal 1. This is the Michigan Compassionate Care Initiative that was passed on November 4, 2008. With this measure, possession of up to 2.5 ounces of marijuana became legal for patients who have specific medical conditions after obtaining approval from a physician.
However, this legislation did not say anything about letting dispensaries operate. But patients and their caregivers were given permission to grow up to 12 marijuana plants.
This measure was not fully supported by law enforcement officials. Nor was it supported by John P. Walters. However, the measure was approved by a 63-67 margin. This made Michigan the 13 state to legalize marijuana for medical utilization.
By February 2013, the Supreme Court of Michigan ruled that the 2008 initiative didn’t permit medical cannabis dispensaries to operate in the Great Lake State. Thus, there were between 75 and 100 dispensaries operating illegally at that point.
By September 2016, Governor Rick Snyder signed several reforms into law. These permitted medical cannabis dispensary operation and regulation and set a tax rate of 3% on medical marijuana. He also signed a reform that permits topical and edible cannabis forms.
Michigan Recreational Marijuana Legalization
During November 2017, cannabis legalization proponents submitted 365,000 signatures that would ultimately allow a marijuana legalization measure on the 2018 ballot. Then, in April 2018, it was announced that supporters had enough valid signatures to make it to the ballot.
However, in June 2018, Michigan lawmakers decided to decline the option to pass the measure on their own. This sent the measure to the November ballot. Then, on November 6, 2018, Proposal 1 was approved by Michigan voters by a 56-44 margin. Michigan is now the 10th state to legalize adult-use marijuana.
With the Michigan Regulation and Taxation of Marihuana Act, people 21 years of age and older are allowed to possess up to 2.5 ounces of marijuana in public. They can also have up to 10 ounces and cultivate up to one dozen plants at their residence. Furthermore, this act set up a system for state-licensed cannabis cultivation and distribution.
The sales of these operations are subject to a 10% cannabis excise tax, as well as the state’s 6% sales tax. This law became effective on December 6, 2018. But it wasn’t until December 1, 2019, that dispensaries were open to the public.
Marijauna Legality in Michigan FAQ
Can you own marijuana plants?
In Michigan, cannabis consumers can own marijuana plants. They’re allowed to grow up to 12 plants at their home and can hold onto 10 ounces of marijuana at their residence, as well.
Does Michigan allow medical marijuana?
Michigan has allowed medical marijuana since 2008. Over the years, the rules have changed around this space. However, MMJ patients in Michigan have access to their cannabis treatment.
So, Is Marijauna Legal in Michigan?
For those of you who skimmed this post and want a quick summary, the answer is “yes.” Marijauna is legal in Michigan for medical and recreational consumption. Consumers can purchase marijuana at a dispensary, grow and possess cannabis, and keep up to 10 ounces of product at home.
Equally important to note is that legalization has brought on a green rush in Michigan. Thus, for ganjapreneurs in this state’s space, the market has observed tremendous growth since legalization.
Michigan’s cannabis industry was worth around $3.1 billion in 2020, with retailers reporting sales of around $1.0 billion. But this doesn’t take into account the non-retail sources, including medical caregivers, home cultivation, and illicit black market cannabis sales.
Looking to scale your Michigan cannabusiness? Northstar is here to help!
Contact us now to speak with one of our experts about how we’ll grow your operation in Michigan’s budding cannabis space.
How much does a dispensary owner make? And while we’re asking, how profitable are cannabis dispensaries, anyway?
In this post, we cover the ins and outs of owning a dispensary, including but not limited to how much dispensary owners usually earn and related questions.
Keep reading to learn the answer to “How much does a dispensary owner make,” and more!
Average Dispensary Income 2022
The average dispensary income in 2017 was around $1.8 million in profit. Over the years, the average has risen, with some dispensary owners claiming to bring in more than five million dollars in annual revenue!
Besides the average dispensary income in 2022, it’s important to consider how much dispensary owners take home. Some receive up to $500,000 or more as an annual salary!
Profit margins are equally impressive. Medical and recreational cannabis dispensaries typically operate with an average net profit margin of between 15 and 21 percent. This is after paying taxes.
Dispensary Taxes
Cannabis dispensaries must pay taxes just like any other business. This, of course, includes income and payroll taxes. But lest we forget, each state and region has different taxes for cannabis dispensaries.
For instance, in California, dispensaries are subject to a cannabis excise tax. As of January 1, 2018, retail purchases of all cannabis and cannabis products have a 15-percent excise tax. this includes medicinal cannabis.
For cannabis excise tax purposes, distributors must calculate and collect the excise tax due on the products being supplied to the dispensaries. This tax is calculated based on the average market price of the products being sold in the dispensaries.
The average market price gets determined in accordance with the transaction. It depends on whether this is an arm’s length or noarms length transaction.
Arm’s length transactions are the sales that are entered into with both parties understanding that the supplier is supplying the products at the fair market value to the dispensary. Neither party can be under any compulsion to involve themselves in the transaction. The average retail price is the wholesale cost of the cannabis or cannabis products being sold or transferred to the dispensary, with a mark-up, of course.
For noarm’s length transactions, these differ from arm’s length transactions. These transactions don’t involve a sale to a dispensary that incorporates fair market value in the open market. For instance, if a distributor sells cannabis to a dispensary at a sales price that’s less than what he or she offers to other cannabis dispensary operations. Thus, this is not fair market value because the price is less than it.
Dispensary Owner Take Home FAQ
Do dispensary owners make money?
Yes, dispensary owners make quite a bit of money. Owning a dispensary can be very lucrative. Some dispensary owners take home millions of dollars per year, and others earn hundreds of thousands. Dispensary income varies from location to location. But the average dispensary brings in over a million dollars in annual revenue.
What is the average profit of a dispensary?
The average profit dispensary owners can expect is around $1.8 million per year. But much like income, profit margin varies between dispensaries, and these numbers are based on an average. The true profit a dispensary owner can expect to earn could be much higher – or lower, depending on how they run their operation!
How much does it cost to start a dispensary?
Starting a dispensary is not a cheap venture; it can cost anywhere between $50,000 and $500,000+ to open a dispensary. The price of starting a cannabis business varies based on location, so it’s important to consider all the costs associated with the opening of a shop.
Is owning a dispensary hard?
It can be hard work! Dispensary owners have to deal with many rules and regulations, and they have to take care of their customers in addition to running a business. But it’s all worth it if the dispensary is successful!
Concluding on How Much Dispensary Owners Make
How much does a dispensary owner make? Well, that all depends on the person operating the business.
For successful dispensaries, it’s not uncommon for dispensary owners to earn hundreds of thousands of dollars annually – or more! On the other end of the spectrum, less-than-successful operations may not bring in a profit at all.
As you can see, it’s possible to make money as a dispensary owner – but that’s only if it’s run correctly. Otherwise, the cost of business could outweigh revenue!
Looking to start and scale your dispensary? Northstar is ready to help!
Contact us now to speak with one of our experts about how we can grow your operation in this budding space.
