Connect with Simone: https://www.linkedin.com/in/bizwithsimone/
Simone's Podcast: https://cannabisradio.com/podcasts/cannabis-business-minds/
CBM Network: https://www.cbmnetwork.com/courses/startup

Full Episode Transcript:
Adam:

Welcome back to Count Me In the podcast that brings you inside the fascinating world of management accounting. Few industries have more interesting or infamous background than cannabis. From a management accountant's perspective, it's the story straight out of the wild west of business. Joining me today is Simone Cimiluca-Radzins, a leading consultant in the cannabis industry. We discuss our unique journey from a big four CPA to bringing accounting and finance order to attain businesses in cannabis country. Let's start the conversation.

Adam:

Simone, thank you so much for coming on the podcast today. I'm really excited to be talking about cannabis and cannabis and accounting and accounting in the cannabis industry. But to start off, I wanna find out how did you get into this industry and what's your story?

Simone:

I'm so excited to also be on. Thank you so much for the opportunity. You know, I am an accountant by nature. I grew up in a family where my dad is an accountant, a controller, you know, did the whole kind of accounting route and it just was the thing that just made sense going up in college. I was like, oh, accounting's easy. Let me go do this. And then got recruited pretty young in university to be part of PWC. And then it almost felt like my career path was kind of just set, maybe luck, maybe opportunity, you know, the combination of all of that. And I did, I did a few different corporate accounting type of jobs. Got to travel the entire world, which was amazing. Doing internal audit for one of the large studios down in Los Angeles and then moving to Paris for a few years and being able to do international consulting.

Simone:

I've always focused on accounting, right? So internal control development, processes, you know, process improvement. But it was nice because at that point, at the very end of my corporate tenure, I guess we could say it was an opportunity to really see how I could truly be an advisor and truly implement things instead of just telling people, Hey, you know what, you've got all of these control problems and see you later. Here's your audit report. And so that was a really nice kind of end towards my corporate tenure. And yeah, I think you probably hear it often that some people just get burned out and doing international consulting. That's how I felt like it was, you know, and it's funny saying it cuz it was such a dream when it was there, but then at the very end, it was like two weeks in Paris, two weeks somewhere else in the world.

Simone:

And you're battling jet lag. You're, you know, I'm in my mid twenties at this point, almost like late twenties I guess. And you're kinda like, well, hold on, I wanna hang out with people. I wanna have friends. Like, this is so fun. But at the same time, I feel like there's something more. And, you know, I decided to quit my job and I lost my visa living in Europe. I lost my visa and I went back to the US and started freelancing from one of my, you know, previous jobs. So it was a really great freelance gig and that started to get me into freelance and understanding, well, okay, this is really cool. Like, I have to do my deliverables and I can kind of just maybe build something on my own.

Simone:

And that's when I think the entrepreneurial bug started where I was like, Hmm, you know, I think that there's something more, but I didn't know what that more is. And in the end, I think I'm just getting there, right? And so that's like, oh, this is a while. So I guess to any listener who's feeling that it's okay to feel like you might not really know exactly what you want, but that there is something more. And freelancing, it was just a great opportunity. I can make great better money than I was making in my corporate gig. And I had just moved to LA and so I got a subscription to magazines. I don't know if if if people still get that, but when you move into a new place, you can get all these, these magazines. And I got this one.

Simone:

There was on the front cover, women in the marijuana industry. And I was like, what? Now I'd been in Europe, I'd been in finance I hadn't thought about, and it was marijuana then I call it cannabis now. It's, you know, the real term that you wanna use. I hadn't thought about weed, cannabis, marijuana since I was in high school. And I was like, Hmm, this is interesting. And I started really diving in into what is this industry? And at that time it's 2015. And so if we just roll back, there's not even two states that have legalized adult use and some obviously have, have legalized medical use. But, so it's all brand new. I'm in California, which is the Wild West, which is the biggest market in the entire world. And I just started doing this research about like, what is, I'm an auditor.

Simone:

I was like, okay, let me understand the ecosystem just like I would a business. I was like, okay, let me understand the players, what is happening? Like what is the supply chain and all of that. And I just thought to myself, okay, I think this is the industry that I wanna be in. And before I even got on my own, I thought, okay, but how do you really learn it? You learn it through the numbers. Just like I learned every other business, right? Like, you can understand numbers, you can understand how everything works. So I approached a CPA firm that was very cannabis, like, it was very clear they were working in the cannabis industry, which is not, you know, was not at that time something that you would promote. And I said, Hey, I can help you. I can help you with your sales, I can help you, you know, build, you know, a better process. And I had a year, a little bit less than a year working with them until I felt really confident that I could just go out on my own and start kind of building my own business and start kind of working on different projects in the cannabis space. So that's how I got in.

Adam:

Wow, that's amazing. So when you got in, it was still largely a cash industry, right? So I can only imagine how crazy that was because everything is digital currencies and all that stuff and the world of business today, even in 2015, it still was. And now, and in that time, how did you manage that?

Simone:

Well, so the interesting thing is, so there's twofold. There's, I got 80% of businesses still lack banking today in 2022. So you really have to have a good set of internal controls. And working with those businesses even in 2015, you know, you could just spoil it back to the basics. But what's fascinating is that they're, you know, there's almost something that you could call legacy industry, meaning operators that had been in the business before it was quote, unquote "legal" in that state. Right. So had probably got involved in, you know, if you think about California, there was an ability to truly build a business, even though it was a cooperative model starting in 1996 when there was the first dispensary. But from a federal perspective, and there's still a lot of federal issues, they were not supposed to hold their receipts. They were supposed to erase everything, which is an accountant's worst nightmare.

Adam:

Wow. I can only imagine.

Simone:

Yeah, so it was a lot of education and it still i...