Cannabis Accounting And Bookkeeping Services

Cannabis Accounting and Bookkeeping Challenges

Cannabis Accounting and Bookkeeping Challenges

  1. Tax laws are complex because cannabis is considered a Schedule I drug under the Controlled Substances Act. Not only are cannabis businesses prohibited from taking certain deductions, but they also face a higher risk of audits.
  2. Opening a business bank account may be difficult, depending on your state, and you may not be able to obtain some types of business loans. Keeping a lot of cash on hand is not safe.
  3. Finding accountants and bookkeepers willing to work with cannabis businesses may be difficult due to concerns about the legality and morality of working in the industry. This makes accurate sales tracking difficult, if not impossible.
  4. Cannabis firms, especially dispensaries, become targets for thieves. In addition to cash, inventory is often demanded, which eats into current and future profits.

Cannabis CPA Bookkeeping and Accounting Solutions

  1. Employ an experienced, professional cannabis CPA firm like ours. We understand how the tax laws work and will help you minimize your taxes while remaining legally compliant. We assist with tax forms and help you avoid IRS audits and penalties.
  2. You may want to avoid federal and other major banks since, technically, cannabis is illegal — at least at the federal level. Choose a statewide or local bank or opt for a credit union.
  3. Tracking sales and other metrics is vital. At Cannabis CPA, Certified Public Accountants (CPAs) who specialize in the cannabis industry provide professional accounting and bookkeeping services to cannabis businesses.
  4. Accounting and financial services firms specializing in the cannabis industry can help you implement financial strategies that protect your valuable assets.

Our Cannabis Accounting and Bookkeeping Services


Due to the tax restrictions of U.S. Code § 280E, cost accounting becomes extremely important. Cannabis CPA knows how to allocate the correct amounts to cost of goods sold (COGS), which has a significant tax impact.

Our accounting services include:

  • Preparation of financial and income statements
  • Income tax preparation and planning
  • Payroll and sales taxes processing
  • Implementation of accounting software
  • Financial assessment reports
  • Tax Audit assistance, if necessary


Cannabis CPA uses specific bookkeeping methods tailored to growing, extraction and dispensary businesses, and any combination thereof, because the COGS for each of those sub-industries is accounted for differently.

Our outsourced cannabis bookkeeping services include:

  • Monthly or quarterly entry, reconciliation and review of books
  • Organization of cannabis bookkeeping tasks
  • Setup of computerized bookkeeping
  • Creation of a chart of accounts for deductions
  • Employee education and training
  • Issuance of 1099 forms for the IRS

Why Choose Cannabis CPA for Your Cannabis Business

Unlike most CPA firms, we offer specialized accounting and bookkeeping for cannabis startups and established companies. With our understanding of all the components of the cannabis industry — from seed to sale — as well as expertise in tax preparation, tax planning and bookkeeping, Cannabis CPA knows how to properly account for the cost of goods sold at each stage in the life cycle. Correct accounting for COGS optimizes your savings, allowing you to keep more of the green stuff in your pockets so you can grow your business.