A cannabis CPA provides accounting, tax, audit, and advisory services specifically to licensed cannabis operators. Cannabis CPA work includes IRC 280E tax planning and compliance, cannabis-specific chart of accounts and bookkeeping, cost of goods sold (COGS) allocation, multi-state tax compliance, cannabis MSO audits under PCAOB and CPAB standards, outsourced CFO services, cost segregation studies for cannabis buildouts, license application financial support, and M&A due diligence for cannabis transactions. Unlike a generalist CPA, a cannabis CPA understands the federal Schedule I treatment (or post-April 2026 Schedule III for medical), state-by-state regulatory frameworks, banking limitations, and the operational realities of cultivation, manufacturing, distribution, and retail.

IRC Section 280E is a provision of the federal tax code that disallows ordinary business expense deductions for businesses trafficking in Schedule I or Schedule II controlled substances. Because cannabis remains federally Schedule I (with the exception of state-licensed medical cannabis, which became Schedule III effective April 22, 2026), adult-use cannabis operators cannot deduct normal business expenses like marketing, salaries, and rent on their federal return. Only Cost of Goods Sold (COGS) is deductible. This means federal taxable income for cannabis operators often runs 70 to 80 percent of gross profit if COGS is not structured properly. Cannabis CPAs specialize in maximizing legal COGS allocation, structuring entities to minimize 280E exposure, and applying state 280E decoupling (available in states like California and Virginia) to reduce state-level tax burden. Following the April 2026 medical rescheduling, medical operators may now deduct ordinary business expenses federally, creating a dual regime for operators holding both medical and adult-use licenses.

You need a cannabis-specialized CPA. Generalist CPAs typically do not understand IRC 280E, cannabis-specific COGS allocation, cannabis banking restrictions, seed-to-sale accounting requirements, state licensing compliance financial standards, or the audit requirements for cannabis MSOs on public exchanges. Working with a generalist CPA usually results in either overpayment of federal tax (missing COGS opportunities), underpayment with subsequent IRS penalties (misapplying 280E), or compliance failures during state license renewals or audits. Cannabis operators consistently benefit from working with a cannabis-focused firm that already understands the industry rather than paying a generalist to learn on their engagement.

Pricing depends on scope, complexity, and engagement type. Tax preparation and compliance work is typically scoped per return based on entity structure, states filed, and complexity. Audit engagements are scoped per audit based on operator size and reporting standard (GAAP, PCAOB, CPAB). Outsourced CFO and ongoing cannabis accounting services are usually structured as monthly retainers based on company size, transaction volume, and reporting cadence. Cost segregation studies are typically fixed-fee based on the property scope. We provide clear pricing during the proposal stage so there are no surprises. A discovery call is the fastest way to get scoped pricing for your specific situation.

GreenGrowth CPAs serves cannabis operators in 13 U.S. state markets: Arizona, California, Connecticut, Delaware, Florida, Illinois, Kentucky, Maryland, Minnesota, New Jersey, New York, Ohio, and Virginia. Each state has dedicated cannabis CPA guidance covering state-specific 280E treatment, multi-state tax coordination, license compliance requirements, and cannabis banking landscape. Services are delivered remotely with secure document exchange and regular video check-ins. Multi-state operators receive consolidated planning and coordinated compliance across all their state footprints.

Yes. Cannabis license application financial support is a core service line. We help applicants prepare the financial documentation, capital adequacy modeling, source of funds documentation, projected P&L, and operational viability projections that state regulators require during license review. We have specific expertise in Virginia (for the February 1, 2027 adult-use application window), New York (medical and adult-use), New Jersey, and other emerging markets. If your application requires audited or reviewed financial statements as part of the submission, we can provide those as well.

A cannabis outsourced CFO is a fractional finance executive who provides CFO-level financial leadership without the cost of a full-time hire. Cannabis outsourced CFO services typically include monthly financial reporting, forecasting and budgeting, cash flow management, KPI development, board reporting, capital raise preparation, banking relationship management, and strategic advisory on major operational decisions. Cannabis operators typically need an outsourced CFO when annual revenue crosses roughly $2 million, when they are preparing for a capital raise or public listing, when they are expanding into new states, or when their in-house accounting cannot support decision-making cadence at the leadership level. Daniel Sabet leads the cannabis CFO practice at GreenGrowth CPAs.

Transitions are common and manageable. We start with a discovery call to understand your current situation, your relationship with your existing CPA, and your priorities. If we decide to engage, we work directly with your previous CPA to request transfer of your tax files, working papers, and any relevant historical records. We do an onboarding review to identify any 280E, COGS, or compliance issues that need attention from prior years, and we build a plan to bring reporting and compliance forward. Most transitions happen between filing seasons, but we can accommodate urgent transitions if there is an active issue. There is no need to burn a bridge with your current CPA; we handle transitions professionally.