Cannabis Tax & Accounting

Your Full-Service Cannabis Accounting Partner 

Cannabis laws and accounting regulations can be challenging. Let us help you conquer the challenge on the right side of those laws.

The evolving cannabis industry offers exceptional opportunities for growth; however, cannabis businesses also face complex and challenging issues ranging from compliance with changing state and federal regulations to adherence with Section 280E of the IRS tax code. In this highly-regulated industry, we know that confusing accounting and tax laws can make running your business difficult. You shouldn’t have to face these challenges yourself. At Hal E. Hershkowitz, C.P.A., we understand the daily financial obstacles cannabis businesses are faced with, and we’re here to help! 

Whether you’re a new startup business that needs a little guidance getting up and running, or a larger established cannabis grower, dispensary, or retailer, our knowledgeable and experienced team of cannabis accountants can help design accounting services and programs that fit your specific business needs. As a premier cannabis CPA firm, we’re committed to providing you with the powerful, accurate, and confidential accounting solutions you need so that your cannabis business can remain compliant and continue growing for many years to come.

Call us to learn more, or schedule your consultation today!

What We Offer You

With over 100 years of combined experience, our cannabis CPAs provide you with comprehensive cannabis accounting and tax services and programs tailored to your business. Our trusted services are specifically designed to help your cannabis business achieve its unique objectives.

Cannabis Accounting Process Structuring 

We offer specialized accounting and bookkeeping solutions to make managing your finances easier, while also helping you remain compliant with federal and state regulations relating to the cannabis industry. The cannabis accounting services we offer, include, but are not limited to:

  • Monthly financials preparation
  • Best practices and requirements for record-keeping and proper allocation activities per 280E
  • Internal accounting process customization and documentation preparation
  • Accounting software setup, including the chart of accounts to properly reflect Cost of Goods Sold (COGS) per taxing agency requirements and US Generally Accepted Accounting Principles (GAAP)
  • Integration of accounting software with point-of-sale (POS) systems and Cannabis Tracking Systems (CTS)

Cannabis Tax Preparation & Planning

Our cannabis accountants will plan and prepare federal, state, and local income tax returns for your business, with the most current cannabis taxation laws in mind. We help you properly allocate costs so that your business can optimize deductions and reduce taxes owed. Our expert tax services include:

  • Expert recommendations for best entity selection and set up
  • Best practices for business expenses to maximize deductions and lower your taxes
  • Guidance on the layout of facilities to reduce tax exposure

Accounting and Tax Maintenance Programs

When you partner with Hal E. Hershkowitz, C.P.A., we strive to get to know our clients and foster a long-standing relationship. For this reason, we offer our cannabis clients continuing accounting and tax programs to help your business thrive and provide you with the support and peace of mind you deserve. We provide you with the following maintenance services:

  • Consistent assessment of accounting software integration with POS and CTS systems
  • Monthly GAAP Cost Accounting to allocate and maximize deductions
  • Income tax preparation on cannabis business and personal returns
  • Payroll tax return preparation and processing
  • Sales and excise tax preparation
  • 1099 preparation
  • Estimated tax calculations
  • Franchise tax return preparation

Audit Representation for Cannabis Businesses

One of the most intimidating and challenging issues your cannabis business can face is receiving an IRS or state audit notice. The IRS has stated that it is not a matter of it your cannabis business will be audited, it’s a matter of when. However, you don’t have to face the auditor alone. Our CPA firm provides effective IRS audit review, preparation, and even representation services. We’ll work to carefully identify and address any issues your organization may have, including, concerns with internal controls, business processes, and cash flow. Based on our many years of experience assisting cannabis businesses, our ultimate goal is to make sure you receive the best audit results and representation possible.

Cannabis Accounting Services You Can Trust 

Hal E. Hershkowitz, C.P.A. professionals are constantly trained and educated on current and upcoming cannabis taxes and regulations to help your business maintain compliance. We can help structure your cannabis company and provide you with ongoing accounting services to not only save you money, but mitigate an IRS cannabis audit.