Marijuana Business Magazine September 2018

HOW TO TRAIN For Humiston, the first step is laying out expectations for the employee on the first day. That’s something you can do during the interview process. Explain to your new hire what the project is and what the deadlines are. “Let them know what success looks like,” she said. Dope's CFO uses an internal online program with video modules to walk new hires through the training. It details what duties they’ll perform, including training on cost, accrual and absorption accounting. “We show them how that’s done and how to apply that to their clients,” Granger said. It takes about 30 days for a candi- date to become proficient enough to work on their own. Henry likes to provide his new hires with an understanding of what’s expected as well. He’ll also help his bookkeeper get up to speed with programs the company uses. For example, he’ll provide a three- day QuickBooks course to help with training. He also will have the in-house bookkeeper meet with the outside CPA cannabis companies are small and hoping to grow. She recommends finding some- one who has helped build a company before and can do it again. “A lot of cannabis companies are very new. And when you’re a startup, you’re just trying to get off the ground,” Humiston said. Look for someone who is well- rounded in different types of accounting. You also want to find someone who has gone through the process of rais- ing capital. “You need an accountant to help with that,” Humiston added. At Dope CFO, a Bend, Oregon- based training company for accoun- tants in the cannabis industry, founder and owner Naomi Granger likes candidates who understand the nuances of cost accounting. “Cost accounting is the biggest piece,” she said. “You’ll be paying a lot in taxes if that’s not done right.” Cost accounting is when an account- ant captures a business’ cost of produc- tion at the time each of those costs is incurred, in addition to the fixed costs, including depreciation of equipment. For Jesse Henry, executive direc- tor of the Barbary Coast recreational and medical marijuana retail store in San Francisco, a good accountant is someone who keeps meticulous records and has integrity. “It’s just like any other business where you’re looking for someone that’s honest and has your best inten- tions at heart,” he said. BACKGROUND To Humiston, an ideal candidate is one familiar with Section 280E. Other preferable experience would be from another highly regulated sec- tor such as the alcohol industry. Humiston also likes someone who has started in one role at a company, then moved into other roles. For exam- ple, a good candidate would start as a bookkeeper, move to accountant, then to controller. “Find someone who shows longev- ity and career growth on their resume,” Humiston said. For Granger, a good candidate doesn’t necessarily have to have a certified public accountant (CPA) license. “But it would be good if they had some type of experience with a ‘Big Four’ company,” she said. The Big Four accounting firms are PricewaterhouseCoopers, Deloitte Touche Tohmatsu, Ernst & Young and KPMG. These are good training grounds for accountants, she added. “If they don’t have that type of background, they need to be trained,” Granger said. WHERE TO LOOK Granger likes using word of mouth, as long as the person has the right qualifications. “We stopped marketing, and all of our business comes from referrals,” she said. The outside CPA used by Barbary Coast came through a referral from other cannabis businesses. “You need someone who’s highly recommended,” Henry said. Naomi Granger is founder and owner of Dope CFO, a training company for accountants in the cannabis industry Jesse Henry is executive director of Barbary Coast in San Francisco. 104 • Marijuana Business Magazine • September 2018