The accounting for cannabis companies is pretty much the same for any other company. However, there are hurdles that cannabis companies face. These are more to do with the fact that the federal government still considers THC as a Schedule 1 drug.
So what are these hurdles you may ask. Here are some of them:
- Any federally insured bank will shut down your account if they find out you are selling cannabis driven (THC) products.
- Since cannabis is illegal, it cannot be transported over state line. Yes, the feds still rule there. No states rights here.
- The feds do not allow the deduction of certain expenses when you file your tax returns. This is section 280E of the IRS code. I think this is unconstitutional and will eventually be challenged in the courts but for now just go with it.