What Is Section 280E? A Plain-English Guide for Cannabis Operators
Section 280E explained in plain English: what it says, why cannabis tax rates run so high, what COGS still covers, and how Schedule III changed medical.
Resources
Cannabis finance, explained plainly.
Guides on 280E, COGS, Schedule III, cash controls and CFO-level planning for licensed operators. New articles every Wednesday.
How to Split Shared Costs Between Medical and Adult-Use Licenses
Dual-license cannabis cost allocation: a step-by-step way to split shared costs between medical and adult-use, with a worked example and memo tips.
Cannabis COGS Under IRC 471: What You Can and Can't Include
Cannabis COGS under IRC 471 explained: which costs resellers and producers can include, why 263A doesn't help under 280E, and the records that support it.
Do You Need a Fractional CFO for Your Cannabis Business?
When does a cannabis business need a fractional CFO? Learn the warning signs, how a CFO differs from a bookkeeper or tax preparer, and how to weigh the cost.
How 280E Hits Dispensaries, Cultivators and Manufacturers Differently
How 280E hits dispensaries, cultivators and manufacturers differently: reseller vs producer COGS rules, why vertical integration matters, and a comparison.
How to Build a Cannabis Chart of Accounts That Holds Up Under 280E
Build a cannabis chart of accounts that holds up under 280E: COGS cost pools, classes by license, a sample account list and the mistakes that cost operators.
How to Reconcile Metrc to QuickBooks Every Month (Without Losing a Week to It)
A monthly Metrc to QuickBooks reconciliation checklist for cannabis operators: what to tie out, common inventory variances, and who owns each step.
Cash Controls for Dispensaries: Counts, Drops and Vault Logs That Actually Work
Dispensary cash controls explained: dual control, till counts, safe drops, vault logs, deposits and variance thresholds that protect cash and your books.
How to Build a 13-Week Cash Flow Forecast for a Cannabis Business
Build a 13-week cash flow forecast for your cannabis business: template structure, a 280E tax reserve, excise and sales tax timing, and a worked example.
How to Prepare for an IRS Audit as a Cannabis Business (Before the Letter Arrives)
Cannabis IRS audit prep: what examiners focus on (COGS, cash, inventory, 280E), the records to keep ready, and what to do when a notice arrives.
Cannabis Entity Structure: C Corp, S Corp, LLC and Management Companies
Cannabis entity structure explained: how C corps, S corps, LLCs and management companies interact with 280E, what courts have said, and the risks to weigh.
How to Record and File Cannabis Excise and Sales Taxes Without Losing Track
How to record cannabis excise and sales taxes: gross vs net revenue, liability accounts, a monthly filing calendar, state differences, and late-filing risk.
Cannabis Banking: The Records Your Bank and the IRS Expect You to Keep
Cannabis banking records explained: FinCEN 2014 guidance, deposit support, armored car logs, Form 8300 for cash over $10,000, and how to book bank fees.
9 Financial KPIs Every Cannabis Operator Should Track (With Formulas)
The 9 cannabis KPIs to track: gross margin, cost per gram, inventory turns, days of cash, tax rate, sales per sq ft, basket size, labor % and shrink.
How to Choose a Cannabis Accountant: 12 Questions to Ask (and What Good Answers Sound Like)
How to choose a cannabis accountant: 12 questions to ask about 280E, COGS, Schedule III, Metrc, cash and pricing, and what a strong answer sounds like.
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