Given the unique regulatory and financial challenges in this industry, you need a CFO who can guide your organizational management to help ensure your financial success and sustainable growth.

At a high level, the CFO On Call oversees or implements:

  • Cost Management related to production, distribution, compliance, and facility management to improve operational efficiency.
  • Cash Flow Management, particularly critical in the cannabis industry due to the prevalence of cash-based transactions.
  • Inventory Management, especially related to product loss, a common issue in the cannabis industry.
  • Tax Strategy, heightened for sectors regulated under 280E.
  • Licensing and permitting for compliance and on-time renewals.
  • Security protocols and compliance efforts which are highly regulated in the cannabis industry.
  • Supply Chain Management, ensuring the smooth operation of the supply chain from cultivation to distribution, and assessing opportunities for cost savings.
  • Risk management associated with changes in regulations, market fluctuations, and security.
  • Stakeholder communication – transparency and accountability are key to maintaining confidence in their investment.
  • Operational efficiency, financial reporting, strategic planning, technology integration, and capital allocation.
  • A culture of continuous improvement to stay agile in this rapidly changing industry.

BTA – By Example: Cultivation

I was introduced to a company in Los Angeles four years ago. A very smart, talented grower with a handful of childhood buddies was running the business. They did everything. They had no organization, so they had to micromanage. They were micromanagers through need.

After several trips to the facility, I made a trip specifically to help them map their future. We spent the next couple of hours drawing the business on a whiteboard. We discussed the industry they were in and where they wanted to be in that industry.

  • Initially, they were only cultivating and selling bulk.
  • They had brands and top-shelf production.
  • They wanted to jar and make their own prerolls, so they could better control the quality.
  • They felt they could do more by increasing their sales force.
  • They also wanted to have at least one more grow facility.

We developed an organization chart with all the slots/positions needed to fully build out that vision. We then did an overlay of where the company was at the starting point four years ago and now. We looked at what we thought would be filled positions on a year-by-year basis and added people’s names as the slots were filled.

An interesting development was when they decided to open a second location. We duplicated the organizational chart and put it side by side with the first location. Then, we looked to see what positions could cover both locations, such as HR and accounting.

With this guidance, they have been able to grow both locations efficiently using this overarching organizational management scheme.

Organizational management in the cannabis industry is multifaceted and requires a CFO with a deep understanding of the regulatory landscape and industry-specific financial challenges. For these reasons and more, having a CFO On Call brings high value to your success.

If you need the expertise of a CFO, let’s talk. I can be reached at Bruce@CannabisCPA.Tax or 818-225-8022.

CFO Services

Why BTA Cannabis CPA Tax?

  • Subject Matter Expert sought nationwide
  • 30+ Years of CPA Experience
  • Cannabis-specific experience since 2018
  • Multi-state service area: 20 of the 24 legalized states (plus Washington, D.C.) as of 4/24/24

Tap the image to enlarge.

The striped overlay shows the 19 states (plus Washington D.C.) that BTA serves as of 11/12/23.

Map source: DISA’s Marijuana Legality by State showing legalization, medical use, and recreational use as of 10/31/23. https://disa.com/marijuana-legality-by-state