7 Questions Cannabis Business Owners Should Ask Before Hiring a CPA

If you're hunting for a cannabis cpa right now, you've probably noticed that every website says the same thing: "deep industry expertise." Great. So does the firm that last handled a dental practice. How do you tell the difference before you've paid anyone?

You ask pointed questions, and you listen for specifics. Here are the seven we'd ask if we were sitting on your side of the table.

Why the questions changed in 2026

The ground moved this year. In April 2026 the Department of Justice placed marijuana covered by a state medical license, along with FDA-approved cannabis drug products, in Schedule III. That matters for taxes because Section 280E only bites on Schedule I and II substances.

Here is the catch. Adult-use cannabis stays in Schedule I under current law, so 280E still applies there, and a separate rulemaking asks whether the rest should move. Your license type, and which of your activities qualify, now drives your tax picture. Cannabis accounting services that treated every operator the same last year are already out of date. We wrote this in October 2026, so check the current status before you act on any of it.

The seven questions

1. How are you handling Section 280E after the 2026 rescheduling?

Start here, because the answer shows how closely a firm follows the news. Ask which of your revenue streams, if any, qualify for the Schedule III treatment, and how they would separate qualifying from non-qualifying activity on your books.

What a good answer sounds like

Specific and cautious. A good firm will talk about license type, activity-level tracking, and scenarios for different outcomes. It will also admit what nobody knows yet. The rule doesn't expressly say whether you can amend earlier returns to claim deductions that 280E blocked, and it's unclear how the IRS will treat them.

Our position, and some competitors will disagree: walk away from anyone who promises you a refund from amended returns today. Nobody can promise that yet.

2. How many cannabis clients do you serve, and with which licenses?

A cannabis cpa who has worked only with dispensaries may stumble on cultivation or processing. Ask for the mix by license type and roughly how long each client has stayed. You don't need names. You need numbers.

Press on one more point: who in the firm actually works on those files? A partner who knows the industry is no help if a first-year associate does your return.

3. How do you allocate costs into inventory?

Cost of goods sold is the one deduction 280E leaves alone, so how a firm builds inventory costs decides a lot of your tax bill. Ask them to walk you through it for a business like yours. Which labor counts? Which overhead? How is it documented?

It's a short question with a long answer. If the reply sounds like a brochure, push for an example from a client situation, with details removed.

4. Will you work inside my systems?

Many states run on seed-to-sale tracking, with Metrc as one common example, and your point-of-sale system holds the sales side. Your accountant should be able to reconcile those against your books. Cannabis accounting services that can't read your tracking data are guessing at your inventory.

Records you should expect to hand over

• Monthly inventory reports from your tracking system

• Point-of-sale sales summaries

• Bank and cash deposit records

• Payroll reports and licensing fee receipts

Ask what the firm needs, and how often. A firm that asks for the same list every month is probably organized.

5. How do you treat cash and banking limits?

Cannabis operators still deal with limited banking access, even after the rescheduling news. Schedule III status may ease worries at some banks, but operators still need explicit federal banking protections to reach mainstream financial services. So ask how the firm handles cash counts, deposit reconciliations, and the paper trail an examiner would want.

Messy cash handling is where small mistakes turn into large ones. This question tells you whether the firm has seen it up close.

6. Who defends me if the IRS audits?

Cannabis returns draw more scrutiny than most. Ask whether the firm represents clients in IRS exams, who does it, and whether audit support is billed separately. A cannabis cpa who prepares your return but hands you off at the first IRS letter is a risk you can't see until it happens.

Also ask how they document positions at filing time. Strong files written in advance are the best audit defense there is.

7. What will this cost, and how fast will you answer?

Get numbers. Our own monthly engagement for bookkeeping, accounting, and fractional CFO support starts at $550 a month, tax preparation starts at $125 an hour, and CPA work starts at $250 an hour. Your volume and the state of your books move the final figure. For comparison shopping on cannabis accounting services, ask each firm for the same details in writing.

Then test them. Send a real question by email and time the reply. We commit to a response within 24 hours. If a firm can't name its own standard, that's your answer.

Red flags during the interview

A few signs should end the conversation early. One is a firm that quotes a flat price without asking about your license type. Another is vague talk about "aggressive strategies" with nothing written down. A third is a refusal to put their preparer details on your return, which the IRS requires from paid preparers.

You can also learn a lot from what they ask you. Good firms are curious about your operation. Bad ones are mostly eager to close.

Conclusion

Pick two or three firms and ask each the same seven questions in the same order, then compare the answers side by side. Better still, request a written reply to question one and question six. The cannabis cpa who answers those with specifics, and admits what's still uncertain, is probably the one who has done this before.

FAQs

Does the 2026 rescheduling mean 280E no longer applies to my business?

It depends on your license and activity. Medical cannabis under a qualifying state license and FDA-approved products were moved. Adult-use cannabis was not, as of the sources we reviewed in October 2026.

What do cannabis accounting services usually cost?

It varies with transaction volume, license type, and the state of your books. As a reference, our monthly engagement starts at $550, and CPA hourly work starts at $250. Always request a written scope.

Should a cannabis business hire a local firm?

Not always. Remote firms can handle books and returns well. Local helps for inventory walk-throughs and in-person reviews of cash handling.

When should I look for a new accountant?

Switch if your books run more than a month behind, if answers take days, or if your firm can't explain how it treats your inventory costs. Start well before a filing deadline.

What documents should I prepare before my first meeting?

Bring your last two tax returns, current financial statements, license details, and a sample inventory report from your tracking system. Add your three biggest tax worries.