Stay Compliant with Growise CPAs: Cannabis Accounting Experts

In cannabis, maintaining compliance with the laws and regulations that govern the industry is crucial. Failure to follow the rules can result in license revocation, making all aspects of compliance a non-negotiable undertaking for conscientious executives.

A major component of compliance is a company’s financial records. If a business isn’t maintaining the books correctly, the next audit (which is likely right around the corner) isn’t going to go well.

That’s where a company like Los Angeles-based Growise CPAs comes in. Lawrence Cagigal, who heads account acquisition and customer service for Growise, says that he and company CEO Kate Dymedenko have worked to assemble a team of accounting professionals that offers comprehensive services to the cannabis and hemp industry.

Dydemenko and Cagigal met while working with cannabis clients at a different firm. They then

launched Growise by leveraging contacts in the industry, initially serving clients in five states. The firm now offers comprehensive accounting solutions for cannabis operators nationwide, with a focus on taxes and fractional CFO services.

Acknowledging that there are many firms offering tax and accounting services to the cannabis industry, Cagigal says he concentrates on nurturing relationships with Growise’s clients. Developing these connections, he says, is key to the company’s success.

“For us, it’s about fit,” says Cagigal. “People stay with us because we know they’re a good fit—we want good fits, because cannabis is too hard to be in a bad relationship with your vendor.”

Choosing a Cannabis CPA

Cannabis businesses, Cagigal notes, will likely have the best results by retaining the services of an accounting firm that specializes in cannabis. Citing industry-specific challenges such as high taxes, he believes the cost of specialized expertise will pay for itself.

“For operators in the THC space, they’re heavily penalized with the IRS, so they have to find a specialist or they’re going to spend more money,” Cagigal explains.

He further suggests that cannabis operators talk to as many accounting firms as possible before selecting one for the job. This, Cagigal says, is the best way to determine which accountants are overpriced and which are priced so low that the quality of service is called into question.

“My recommendation is, interview as many people as you can to find the outliers,” says Cagigal.

“Don’t go for the flash of marketing,” he adds. “Make sure they follow through on the deliverables. It’s easy in this industry to promise the moon and the stars at a low, low cost—that’s not a thing.”

For more information about Growise CPAs, visit the company’s website.