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Naomi Granger
Naomi Granger Naomi Granger

Naomi Granger started her career in accounting as a CPA who worked in both public and corporate accounting. But even before the onset of the COVID pandemic that made remote work common, she realized that this was not the life she wanted on a long-term basis. When she took an online course on how to work as an accountant remotely, she understood that she wanted the flexibility and independence that remote work and having her own business offers. She soon realized that the easiest way to do this was to focus on a particular niche and specialize in that. This led her to venture into accounting work for famous sports personalities and real estate brokerages. However, she found that working for clients in the cannabis sector was more challenging and soon switched to this sector.

In 2017, when Naomi entered the sector, the cannabis industry was still at a very nascent stage. Cannabis was legalized for adult-use in only six states at that time. Today, five years later, marijuana for adult-use has been legalized in 21 states in the US, though it is still illegal at the federal level. The House has already passed a bill to decriminalize the use of marijuana on April 1, 2022, though its future in the Senate is uncertain. Naomi realized a huge gap in the industry and launched NACAT Pros (National Association of Cannabis Accounting and Tax Professionals) in 2021. With the sale of marijuana becoming legal in more states, the cannabis industry has grown at an exponential pace and accountants and tax professionals are struggling to keep abreast of the regulations in this field. This is where the services of NACAT Pros, set up by Naomi, can make a significant difference.

NACAT Pros guides cannabis industry professionals on the intricacies of setting up and running a successful company while also staying compliant in the highly regulated cannabis industry. There is a lot of confusion around banking and taxes for cannabis companies as cannabis bookkeeping and accounting is a lot more complicated than traditional accounting services.

NACAT Pros standardizes bookkeeping, accounting, and tax support services for cannabis businesses with straightforward and accurate systems.

One problem cannabis businesses have is that they are mainly cash-based and might not be able to operate bank accounts at leading banks. This comes with its own set of problems with regard to cash management as both sales and payments to vendors are made on a cash basis. These need to be reconciled. Another problem is keeping a strict track of inventory as almost all states have controls in place for the seed-to-sell cycle.

While most accountants are already familiar with practices like invoicing, bill payment, account reconciliations, and depreciation of assets, the regulations regarding banking, taxes, seed to sale traceability and controls for the cannabis industry can vary from state to state. There are federal and state income taxes and excise taxes, some of which need to be filed annually while some need to be filed on a monthly basis. Accountants need to keep track of amounts for license renewal as no cannabis business can operate without a license. In some cases the annual license fee can be as high as USD 200,000.

Rules are different across multiple verticals, especially for cultivators and the retail segment. An accountant working for someone in the industry needs to understand compliance in every aspect of the business to avoid heavy penalties or even jail. Many accountants are highly accomplished in other industries but fail to keep their clients compliant as they do not understand the intricacies of tax regulations like 280E and seed-to-sale tracking software. Lack of understanding about such critical processes and regulations can potentially lead to thousands in penalties, closure of the business, and jail time.

NACAT Pros specializes in intensive education for accounting and tax professionals so they can help their clients stay compliant. There are income taxes on the federal level and state and local level. Cannabis is a controlled substance and there are no tax deductions or credits at federal level. Some states follow federal regulations while others don't. Accountants need to know about deductions for different states. It is different for dispensaries and for cultivators.

NACAT Pros operates on a subscription model for both individual accounting professionals and accounting firms. Members receive access to industry expert interviews, get questions on banking and business operations answered, acquire monthly cannabis accounting tools and standard operating procedures, and also gain membership to exclusive private cannabis accounting networking groups. They also get limited access to training modules from NACAT Pros certification program.

NACAT Pros also has a preferred partner program where other cannabis financial service providers such as bankers, software providers, payroll companies and insurance professionals can, for a fee, enroll and be listed as preferred partner on the website and other materials. This program functions as a directory for cannabis operators and their accountants to gain access to supporting service providers.

Said Naomi Granger, Founder of NACAT Pros, "I have been an accountant for over 18 years and found the cannabis industry really challenging with its maze of regulations and tax components. This makes my work really interesting. Another aspect that is interesting is the social equity component. Most of the participants in this industry are people who have been disenfranchised by the war on drugs in the United States. We provide them with the financial education that they need, sometimes on a pro bono or low bono basis, to run their business successfully and be on an equal footing with others. This aspect of the business is very important to me, that through training and education, we can help people who have been at a disadvantage, maybe through years in prison, to become financially independent."

About NACAT Pros:

NACAT Pros (National Association of Cannabis Accounting and Tax Professionals) was set up with the goal of helping accounting professionals expand their practice to support the legal cannabis industry. Naomi has provided support, consulting, and business development skills to over 700 accounting professionals across the United States.

Media Contact:

Name: Naomi Granger

Email: naomi@nacatpros.org