Key Benefits of Hiring an Accountant for Cannabis Businesses
The IRS is ramping up audits on cannabis businesses, which must navigate stricter tax rules and limited deductions under Section 280E of the Internal Revenue Code, as cannabis remains a Schedule I substance federally. These businesses can only deduct the Cost of Goods Sold (COGS) but not ordinary business expenses, making compliance challenging. Engaging an experienced cannabis accountant is essential to optimize deductions, manage cash flow, and ensure financial and regulatory compliance. Cannabis accountants provide tailored solutions for cash-based operations, implement advanced accounting software, and offer financial insights to support business growth, mitigate risks, and protect brand reputation while adhering to complex tax norms.