Changing financial accounting, industry by industry. Chapter 8 of 13: Cannabis
Compliance is the business model.
Specialist accounting for cannabis operators, built around 280E, inventory tracking, and cash controls.
The problem nobody puts on the agenda.
Under Section 280E, plant-touching businesses generally can't deduct ordinary business expenses. That makes cost-of-goods accounting the most important number in the business, and weak records the most expensive mistake.
In cannabis, cost of goods is your tax strategy.The Tiger Take, Chapter 8
COGS built carefully
Documented and reviewed with your tax advisor, because it drives your tax.
Inventory that matches
Seed-to-sale records and books reconciled every month.
Cash you can defend
Daily controls and clean deposit records.
What we put in place.
Controller discipline from 20+ years in the field, with AI automation handling the repetitive work so the close runs in days, not weeks.
- COGS allocation documented and reviewed with your tax advisor
- Monthly reconciliation of seed-to-sale inventory to the books
- Daily cash counts, deposit logs, and segregation of duties
- Entity structure reviewed for correct accounting treatment
- Tax exposure estimated before year-end
- Records organized for regulators, lenders, and your CPA
Your free CannaBooks Scan.
Thirty minutes on your COGS approach, inventory reconciliation, and cash controls. No pitch unless you ask for one.
- Book a time.
Pick any open 30-minute slot on the calendar. - We review together.
Bring what you have. We'll look at your COGS approach, inventory reconciliation, and cash controls. - Leave with three fixes.
The three changes I'd make first, in plain language.
CannaBooks provides accounting services and works alongside your tax advisor. Nothing on this page is tax or legal advice.