Northstar provides our Cannabis clients with expert financial resources
EXPERTS IN CANNABIS
FINANCE & ACCOUNTING
The cannabis industry is the fastest-growing industry in the United States, and it’s experiencing a period of rapid change and development. In addition, this underdeveloped industry has many legal landmines, limited access to financial services, and complicated accounting and regulatory requirements.
The Cannabis Industry
The need for financial expertise
Cannabis companies find themselves challenged by complicated financial issues stemming from:
- The complexity of industry-specific accounting requirements
- A lack of qualified industry bookkeepers & CPAs
- Limited banking services, compliance concerns and significant tax limitations
Northstar provides our Cannabis clients with experienced, expert financial resources to eliminate these difficult challenges.
Faced with an absence of large accounting firms in this high-growth, complex space, cannabis companies must adapt their financial practices to keep up with an increasingly competitive landscape and strict state and federal regulations.
Challenges Faced by Our Cannabis Clients
Why you need Northstar
GAAP Cost Accounting Challenge:
- Adherence compliance is estimating 70% of cannabis Tax refunds will need to be corrected
- CPA’s lack expertise can be costly.
- Must use GAAP cost accounting monthly
Scarcity of industry qualified financial resources:
- Legally complex landscape
- Typically avoided by Big 4 Accounting firms
- CPAs lack industry-specific regulatory understanding
Lack of Critical Reporting & KPIs:
- Value reporting
- Business efficiency
- Investor confidence
Immature Financial Controls and Processes:
- Canna-businesses are in a high growth industry
- Often do not have dedicated CFO or Controller
- Cash Management can be an issue
Our Cannabis-Specific Services
How we support your financial needs
- Professional Onboarding System
- Clean up Historical Financials
- Proprietary Cannabis COA
- Tax Goals
- Entity Objectives
- Prepare GAAP Financials
- Required Cost Accounting
- Month End Reconciliation
- 6-Month Rolling Cash Forecast
- Perpetual Data Room
- Fixed Fee Pricing
- Accounting Policies & Controls
Under-Skilling Your Finance Function Can Lead To:
- Tax Over/Under Payments
- Risk of Audit and/or Penalties
- Financials Not being “Investor Ready”
- Lack of Metrics and Robust Reporting
- Lack of Policies & Controls
- Limited Cash Saving Protocols
- Lower Valuation for Your Business
- Weak Investor Relations
Cannabis Client Benefits
How we support your financial needs
Our intimate knowledge of cannabis-specific financial and tax related issues along with practical and real-world experience within the industry allow us to effectively:
- Navigate the complexity of Internal Revenue Code (IRC) 280E to minimize your tax burden while remaining compliant with current laws and regulatory obligations.
- Implement cannabis-specific best practices to ensure efficient organizational structure, finance processes and controls, risk management and operational activities.
- Achieve maximum valuation by driving fundraising activities, including communicating with investors and your Board, creating business plans and developing effective pitchbooks.
- Reduce the capital needed to build a robust financial department through outsourcing CFO, controller, and accounting/bookkeeping functions needed for both growth and risk management.
- Create robust budgets and forecasts that help to determine where you are, where you want to be, and how to get there, while preserving cash and enabling your company to scale.
Why Our Cannabis Clients Choose Us
I can’t say enough good things about working with Lorenzo and his abilities to ask the hard questions and come up with ways to communicate financial jargon within an organization that everyone can understand. He’s always looking out for the bottom line and has an eye for detail like no other. He’s a true professional I can always count on to follow through and get the job done. From thorough analysis and reporting, to filling in gaps, he brings a seasoned perspective and thoughtful insight that I never took for granted.
Learn How We Can Help
We have a team of expert professionals that have deep Cannabis experience. Our professionals work in close coordination with the clients and carefully analyze their specific requirements.