Cannabis Accounting and Bookkeeping | Ganjapreneur

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How to Hire an Accountant for Your Cannabis Business

Keeping proper accounting records is arguably the most important part of running a cannabis business in the United States.

Why is accounting important to cannabis businesses?

When it comes to cannabis, keeping proper accounting records isn’t just a good thing – it’s crucial.

Tax code 280E is a federal tax code that currently prevents legal cannabis businesses in a state from deducting most business expenses from their taxes, with the exception of cost of goods sold (COGS), since cannabis is classified as a controlled substance.

Determining the COGS can be tricky, there are a lot of gray areas. This is why your accountant should have a good understanding of the cannabis industry.

What to look for in a cannabis accountant:

The best accountants for your business have a proven and verifiable track record in the cannabis industry. If they don’t, they respond to someone who does.

Here are some questions to ask:

  • How long have you been serving cannabis customers?
  • How do you help your customers navigate the 280E?
  • Do you have experience serving clients like me (startups, vertically integrated operations, multistate operators, dispensaries, etc.)?
  • Do you have any customer testimonials that I can see?
  • Can you tell me what accounting services you do and don’t do for a cannabis company like mine?

To start contacting great cannabis accountants, check out Ganjapreneur’s Verified List of Accountants and Bookkeepers above! The list has been assembled to narrow down your search for the perfect cannabis-friendly accountant.

Ganjapreneur has not worked directly with every service provider, but all of these companies are active and respectful suppliers of cannabis to the industry. We encourage you to connect with several different accountants on this list to determine the best one for you.

Are you a CPA working in the industry or do you represent an accounting firm specializing in cannabis? Create a profile here to be discovered by new customers! A profile in the Ganjapreneur Business Index also includes additional marketing tools and features.


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