Interested in learning how to improve your business? Get some free advice below on how to make your marijuana business better everyday.

The interview – questions never to ask!

While there may be many bits of information you would like to know about a candidate for a position you’re hiring, you need to be extremely cautious in asking certain types of questions.   Some questions, while not technically illegal, could open you up to a discrimination suit.  It’s better to avoid those kinds of questions completely, and find other ways to learn about the candidate. Stay away from any questions on the following subjects: read more…

The interview – save yourself a future headache and learn all you can!

The employee interview presents the best opportunity for you to find out about a potential employee.  Resumes and/or a completed job application are essential; they give you the nuts and bolts of the person’s education and employment history.  But it’s the interview where you will get the most information about a prospective employee.  Let’s talk about some ways to learn as much as you can about the person before you. read more…

Staying straight with a cash business – Part I – Cash Receipts

This will be a three-part blog, intended to help you manage your business in the absence of a bank account.  Here’s what you know (or need to know):

The IRS is targeting the marijuana industry, auditing these businesses as much as eight times as often as other businesses.

The IRS is a stickler for documentation.  They want support for every transaction you report on your tax return.

In most instances, the IRS looks to the company bank account to see transactions going in and out.

You don’t have a bank account. read more…

Payroll Taxes – Don’t Mess Around

I have seen more clients get in trouble with their business and the IRS because they did not pay their payroll taxes on time.  It’s a tricky thing, because you do have some leeway in the timeliness of your payments, and so often business owners and managers make the decision to forego paying the taxes right away, thinking that they will catch up later.  Then later never comes and before they know it, the IRS is after them.  So what’s the best approach with payroll taxes? read more…

The general ledger – one of my favs

A general ledger is the complete record of a company’s financial transactions over its lifetime.  It is a report that can be generated over any period of time, and contains a wealth of information. The general ledger is my go-to place when I have questions about my company or need further understanding about a particular transaction.

For very large companies, general ledgers are made up of numerous sub ledgers and you have to dig very deep to get to the individual transaction.  In smaller companies, like most of yours, the majority of the transactions occurring in your business will be captured individually in your general ledger.  It’s a ton of detail but if you know how to dig into it, you can find all kinds of valuable information.  read more…

Hiring right – find your future stars!

I’ve said before that employees are likely your most valuable asset.  Having the right staff is key to the success of your cannabusiness.  Oftentimes they are the first contact that your customer has with your company whether it be on the phone or in person.  It’s crucial that you hire the right people and there are ways to assure that you get the right people the first time, or at least increase the odds. read more…

What’s in your management toolbox?

For many, understanding financial statements is like putting together a puzzle with no picture.  It’s daunting, or nonsensical, or only vaguely has meaning.  How do you make your financial statements into a tool for managing your cannabusiness?  It takes an investment in expertise to create the tool, and an investment of your time to learn how to use it. read more…

Leadership – How to be badass

When you look back to the leaders who made the greatest impact on you, what was it that held your attention, caused you to wonder how they did what they did?   These are the leaders I call “badass”.  They’re not necessarily a Jeff Bezos (CEO of Amazon), but the ones in my camp were generally quiet, focused, thoughtful, with an underlying strength that defied expectations.  read more…

Surprise! The IRS Trick (there is no treat)

By now most, if not all of you, are aware of IRS Code Section 280E that prohibits the deduction of expenses for any business that is trafficking in controlled substances.   If you aren’t aware of this law, you need to be, but more importantly, you need to plan your cash flow (there’s that term again) to be prepared for higher than expected federal income taxes. read more…

What’s that whooshing sound?

Is it the sound of your staff meetings, sucking the life out of its attendees?  How was the last staff meeting you attended?  Afterwards were you satisfied that you had learned something and that your time was valued, or was your time and that of others, simply wasted? read more…

Turn your org chart upside down

If you’ve read previous blogs you know that I consider staff to be our most important asset.  In my long career I’ve worked with close to a thousand different employees.  I worked with some of them several times, because as I made career changes, I took them with me and they wanted to come.  It’s not because I paid them better (although I do think it’s important for your staff to be well compensated) but it’s because they knew how much I valued them and I treated them accordingly. read more…

And a balance sheet is for….what???

Very commonly, inexperienced business owners spend their time focusing on the income statement for their business.  After all, what really matters is that you’re making money right?  Certainly making a profit is important and spending ample time to understand your income statement is crucial to your cannabusiness success. But I recommend that you also spend some time reviewing your balance sheet.  Here’s why. read more…

Materiality

You may think that cannabis accountants sit around making up new terminology to complicate life or make ourselves look smarter. Well, it’s partially true I suppose, but we are way behind those in the tech business and social media! So what is this word materiality and why should you care? Here’s what and why.

read more…

Marcena Sorrels

Marcena Sorrels, the owner and founder of 420 Financial Strategies is a CPA with a long history of management in financial, regulatory and human resources arenas. She has been the top executive in a number of healthcare companies which are highly regulated. She recently completed a tenure with a company in which she was the CFO (chief financial officer) and a partner. That company sold for more than $37 million.

Marcena has a knack for presenting and explaining financial information in such a way that even the most novice of business owners and managers will understand.  She delights in helping cannabusinesses achieve their long terms goals.

Want To Ask More Questions?

Schedule A Free Consultation