The process of choosing right advisors California cannabis Regulatory Compliance business can mean the difference between the success of a business and failure. The industry is experiencing rapid growth and substantial, even radical change in the regulatory environment.
Who Are the WRONG Choices Advisors
The “wrong choices” for advisors fall into several general categories and a couple of specific categories. [Note: The comments which follow are generalizations, and not targeted at any specific individuals unless I specifically identify them by name. If I have had first-hand experience with a firm or an individual, I will not hesitate to call them out, publicly and by name. Obviously, I am careful not to do so lightly, with due consideration of professional standards, advice from our counsel and our insurance carrier, and a dose of common sense.] However, where I do call them out, they usually nominated for inclusion in the aBIZinaBOX “Asshole Academy.” It takes some special talents to be nominated for inclusion in “Asshole Academy, the combination of “ignorance and arrogance” can make someone almost sure of being nominated.
Now that we are clear on the general criteria, let’s continue our discussion by considering some examples of wrong advisors in general:
- “Buzzword Savants” – are the pseudo-experts that use terms and phrases that they couldn’t possibly understand if with death. You will recognize them using terms like “track and trace”, “Cannabis Czar”, and “designer cannabis strain”.
- Seminar Know-It-Alls – this is one of the scariest types of purveyors of wrong advice. You can recognize them by the way they are continually speaking at seminars, meetings, and webcasts, so often that they can’t possibly have any time to engage in real, substantive client work. The worst of them talk about their clients in public forums and likely expose them to a criminal investigation, tax audits and god knows what else. Anyone that engages one of them for advice deserves what they sought. The Radical CPA is a classic example of the Seminar Know-it-All
- and attempting to sell books and coaching are some of their other techniques.
- Bookkeepers and “generic accountants“ that overstep their competence fall into the third broad category. There are individuals that fall within this group who provide some of the most valuable assistance that any business has. However, when they decide that a seminar they attended, or a publication that they read provided them with knowledge and skills of those professionals who are above their pay grade is usually the point at which the trouble begins.
The specific WRONG CHOICES are the general categories of wrong advisors only worse, usually due to their self-perceptions of expertise. It is what we refer to as the ignorance and arrogance disease that has reached end stage.
- Enrolled Agents get special excoriation [not necessarily due to the attributes of an individual EA] but rather due to ruthless self-aggrandizement campaign carried out by their emotionally brittle, mental-midget driven association, the National Association of Enrolled Agents. Through a relentless campaign which is based on statements that they know to be untrue…through their preposterous claim that EA is “America’s Tax Experts“. I have thought through a solution to the “NAEA self-aggrandizement” problem, and anyone who may be can read about it here. The EA that is presenting the seminar identified in the image above is competent, however, when the California Society of Enrolled Agents [‘CSEA”] refers to their members as “California’s Tax Experts,” my gag reflex kicks in and my response is to offer a bit of “Yiddish Wisdom”.
- [More coming]
Right Advisors California Cannabis
Now you know who the wrong choices are so who the right choices are? The simple answer is that there is no single “RIGHT CHOICE.” The longer answer is that a combination of two professionals is required to cover the bases.
- Attorney – cannabis is subject to regulation, lots of supervision. I shouldn’t need to recite all of the control that marijuana is subject to in California…for a quick study of the topic, one could start with the California Cannabis Portal and its linkage to a myriad of agencies. Our firm is fortunate to share numerous California industry clients with William E. Taggart, whose knowledge and expertise in the cannabis industry is widely known. He gave an outstanding presentation at the California Cannabis Symposium sponsored by CALCPA entitled “How Do I Bring My Client Into The Light.”
- Certified Public Accountant [“CPA”] – if you can identify a CPA with verifiable experience in the cannabis industry….grab them. There aren’t many of them, and they aren’t easy to find. We believe that aBIZinaBOX is one such firm, and you can either contact us or look for the next blog in this series to learn more about the attributes that make for the RIGHT CHOICE in an advisor for your cannabis business in California.