Table 11 Participant quotes regarding the need for significant cannabis industry knowledge by Certified Public Accountants

COCPA2

“There’s a lot of nuance to [the industry] … where they’re allowed to deduct certain things, not allowed to deduct certain things. … [A Certified Public Accountant needs] some experience dealing with the companies themselves. They’ve got challenges.”

COCPA5

“The internal controls, to me, get stepped up to a whole new level when you’re talking about [the cannabis industry]. And so ramping up, at every aspect, whoever’s touching and interfacing with the client, if it’s an audit or most likely tax or advisory … whoever the team is, making sure they’re well versed in internal controls [for a cannabis business].”

COCPA6

“Really becoming savvy and understanding the industry would be key.”

COCPA7

“You certainly need to at least be familiar with the business model and industry. … So really understanding how that business is structured and how it works, and how the industry is structured and how it works is very important.”

COCPA8

“I don't think you can jump into it, not knowing what you're getting into, like even as a bookkeeper. I mean if you got into it, not knowing about 280E, you would drown. You would drown.”

WACPA1

“Knowledge of the industry is going to be really, really important.”

WACPA2

“You should read that code [280E]. … Here’s a couple IRS memos … that you need to read … here’s some Tax Court cases you need to read … and they have to understand that like, sort of the sprawling effect of all this 280E stuff is actually a lot more complicated than just cost of goods sold.”

WACPA3

“If you’re going to be in a niche, you really need to understand that business. You need to understand the industry and kind of each of the segments and how they’re interrelated and relate to and interact with each other.”

WACRB1

“I think that having a professional Certified Public Accountant that’s very familiar with cannabis law to do your end of the year tax return is very important.”

WACRB2

“Oh my God, somebody that knows something about the industry. … You got to know the industry. You got to know about compliance.”

WACRB3

“ … having that expertise and that knowledge and that confidence that definitely most businesspeople don’t have, and even [I] … didn’t have.”

COCRB1

“I would say that if you’re going to work with a traditional bookkeeper, it could be a little challenging because of 280E.”

COCRB3

CRBs need a Certified Public Accountant that “provides good 280E advice … know the industry, and 280E and IRS arguments inside and out.”

COCRB4

We “need a high-level Certified Public Accountant that knows the industry and has a good connection with an attorney that knows the industry. A Certified Public Accountant needs to be very hands-on in this business to serve as sort of an outsourced CFO to guide operating decisions around 280E.”