A cannabis CPA firm is an accounting firm that specializes in providing accounting, tax, audit, and advisory services 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 allocation, multi-state tax compliance, cannabis MSO audits under PCAOB standards, outsourced CFO services, cost segregation studies for cannabis buildouts, IPO readiness, license application financial support, and M&A due diligence. Unlike a generalist accounting firm, a cannabis CPA firm understands federal Schedule I treatment (and the Schedule III treatment that applies to state-licensed medical cannabis after April 2026), state-by-state regulatory frameworks, banking limitations, and the operational realities of cultivation, manufacturing, distribution, and retail. GreenGrowth CPAs has operated as a cannabis CPA firm since 2016.

Three things. First, tax methodology: a cannabis accounting firm builds its cost of goods sold allocation and entity structuring specifically around IRC 280E, which is the single largest driver of a cannabis operator's federal tax bill and which most generalist firms encounter for the first time on your engagement. Second, systems knowledge: cannabis accounting requires seed-to-sale reconciliation, license-level reporting, and integration with cannabis point of sale platforms, none of which appear in a standard accounting practice. Third, regulatory fluency: state licensing bodies impose financial reporting and capital adequacy requirements that vary by jurisdiction, and audit standards differ for publicly listed multi-state operators. A generalist firm can produce technically correct financials that still cost you money and expose you to compliance risk because the structure underneath them was never built for cannabis.

The cannabis accounting market is served by a small number of specialty firms alongside the cannabis practice groups of larger regional firms. When evaluating cannabis CPA firms, the criteria that matter most are: how long the firm has worked in cannabis specifically, whether it is an AICPA member firm subject to peer review, whether it holds PCAOB registration for public company audit work, how many state markets it actively serves, whether it can handle tax, accounting, audit, and CFO work in one place rather than referring pieces out, and whether the people doing your work have cannabis experience or are learning on your engagement. GreenGrowth CPAs is an AICPA member firm, PCAOB registered, cannabis-focused since 2016, and active across 13 state cannabis markets. We recommend asking any firm you evaluate to confirm the same four credentials in writing.

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 adult-use cannabis remains federally Schedule I, adult-use cannabis operators cannot deduct normal business expenses such as marketing, salaries, and rent on their federal return. Only cost of goods sold 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 such as California and Virginia) to reduce state-level tax burden. Following the April 2026 rescheduling of state-licensed medical cannabis to Schedule III, 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 through missed COGS opportunities, underpayment with subsequent IRS penalties through misapplied 280E, or compliance failures during state license renewals and 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, whether GAAP or PCAOB. 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 the 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 their entire state footprint.

BudMetrics is an AI retail analytics product for cannabis dispensaries built by the team at GreenGrowth CPAs. It connects to a dispensary's existing point of sale system through a read-only integration, takes roughly fifteen minutes to set up, and works alongside the platforms an operator already runs. Features include discount ROI analysis, a weekly promo planner built from the store's own sales data, a photo-to-buy-list vendor sheet reader, customer retention emails, plain-English Ask AI querying, daily snapshots with an end-of-day email, hourly and budtender-level profit and loss visibility, and competitor and MSRP pricing context. Two Ohio pilot dispensaries added $34,000 and $17,000 in gross profit respectively in their first month. BudMetrics exists because under IRC 280E, retail inefficiencies such as dead stock and discount leakage destroy substantially more value for a cannabis operator than the same inefficiency would in any other retail category.

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 profit and loss statements, 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 for both 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 in-house accounting cannot support decision-making cadence at the leadership level. Daniel Sabet leads the cannabis CFO practice at GreenGrowth CPAs.

GreenGrowth CPAs is headquartered at 200 Spectrum Center Drive, Suite 300, Irvine, California 92618, with additional offices in Los Angeles, New York, Belgrade, and Buenos Aires. The firm can be reached at 800-674-9050 or [email protected]. Cannabis clients are served nationally across 13 state markets through secure remote engagement, so operators do not need to be located near an office to work with us.

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 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 current. 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.