CANNABIS
Cannabis is one of the hardest industries in the country to keep books for, and one of the most punishing if you get it wrong. PFG Tax does bookkeeping built specifically for dispensaries, cultivators, processors, and other licensed cannabis businesses. We track your numbers the way the IRS and your state expect to see them, so you stay compliant, audit-ready, and in control of your cash. Call (888) 338-0544 to talk with someone who actually knows this industry.
Most bookkeepers have never touched a cannabis account, and it shows the first time the IRS asks a question. Cannabis runs on rules that do not apply to any other business, from how you are allowed to report expenses to how much cash moves through the door. We have spent years in this space, and we build your books around those rules from day one.
We know cannabis, not just bookkeeping.
There is a real difference between a bookkeeper who handles cannabis on the side and one who works in it every day. We understand seed to sale tracking, how your state’s compliance system lines up (or does not line up) with your financial records, and how to keep your books in a format that holds up if you are ever examined. We have watched the tax treatment of this industry shift over the years, and we keep up with it so you do not have to.
How cannabis tax rules have changed, and why your books matter more than ever
For most of the industry’s history, cannabis businesses have been treated very differently from every other company at the federal level. Under a section of the tax code known as 280E, businesses that sell cannabis have not been allowed to deduct ordinary operating costs the way a normal retailer can. Rent, payroll, marketing, and most day to day expenses have been off the table as deductions. The one major exception is cost of goods sold, meaning the direct cost of producing or acquiring the product you sell.
That single rule is why bookkeeping is not optional in this industry. When most of your expenses cannot be deducted, the way you track and classify cost of goods sold has a direct effect on your tax bill. Sloppy books cost cannabis businesses real money, and they invite scrutiny. Clean, properly structured books are one of the few legal tools you have to keep your tax liability where it should be.
The landscape has been changing. There is an active federal effort to reclassify cannabis, which would change how 280E applies and could open the door to deducting ordinary business expenses like any other company. The rules are not settled, and what is true this year may not be true next year. We track these changes closely and adjust your books and your strategy as the law moves, so you are positioned to benefit the moment something changes rather than scrambling after the fact.
What we handle for cannabis businesses
- Cost of goods sold tracking and allocation built to hold up under 280E
- Clean separation of deductible and non-deductible expenses
- Reconciling financial records against your state seed to sale system
- Cash handling records and support for large cash transaction reporting
- Monthly bookkeeping, account reconciliation, and financial statements
- Catch-up and cleanup bookkeeping if you have fallen behind
- Books organized and ready for tax preparation, lenders, investors, or an audit
Built for audit-ready cannabis operations
Cannabis businesses get looked at more closely than almost anyone. We keep your records detailed, current, and defensible, so if a question ever comes, the answer is already in your books. You get a financial picture you can actually use to run the business, and a team that understands the industry you are in.
FAQ
Why do cannabis businesses need a specialized bookkeeper?
Cannabis is taxed and regulated differently from any other industry. Between 280E, heavy cash flow, and state seed to sale compliance, a general bookkeeper can miss things that cost you money or trigger an audit. We do this work every day and build your books around the rules that actually apply to you.
What is 280E and how does it affect my books?
280E is the section of the federal tax code that prevents cannabis businesses from deducting most ordinary operating expenses, such as rent, payroll, and marketing. The main expense you can still account for is cost of goods sold. Because of that, how carefully you track and allocate cost of goods sold has a direct effect on your tax bill, which is why precise bookkeeping matters so much in this industry.What is 280E and how does it affect my books?
Have the tax rules for cannabis changed?
The rules have been shifting. There is an ongoing federal effort to reclassify cannabis, which could change how 280E applies and eventually allow normal business deductions. Nothing is final, and the treatment can change from one year to the next. We follow these developments and keep your books and strategy current so you are ready to take advantage of any change as soon as it takes effect.
Can you help if my cannabis books are a mess or behind?
Yes. Catch-up and cleanup work is a big part of what we do. We will get your records organized, reconciled, and brought current, then keep them that way going forward.
Do you work with dispensaries, cultivators, and processors?
Yes. We work with licensed cannabis businesses across the supply chain, including retail dispensaries, cultivation operations, and product manufacturers and processors.
