Cannabis Business Accountants in Florida

Key Points:

• Florida’s Cannabis Tax: Exempted from excise tax.
• Differentiating Services: Cannabis businesses face stricter regulations and tax challenges under IRC Section 280E, while CBD and hemp, being federally legal, can deduct ordinary expenses but must follow Florida’s sales tax rules.
• CPA Specialized Services: 280E compliance, inventory management, cash controls, and regulatory reporting

Florida's Cannabis Industry and Financial Oversight

Florida has over 600 licensed dispensaries, each requiring specialized financial oversight, along with their suppliers, including cultivators and processors. Engaging a Cannabis Certified Public Accountant (CPA) or a Fractional Chief Financial Officer (CFO) provides the tailored financial guidance essential for these businesses to navigate the complex regulatory landscape of the cannabis industry.

Cannabis Certified Public Accountant

A cannabis CPA possesses deep expertise in the cannabis sector's unique financial and regulatory complexities. With a thorough understanding of tax regulations, compliance standards, and specialized accounting procedures, these professionals play a pivotal role in guiding cannabis businesses through the industry's intricate regulatory environment.

• Are you a Florida-licensed CPA offering services to cannabis-related businesses? Request to be listed .

Florida’s Cannabis Tax Structure

Medical marijuana in Florida is exempt from excise taxes but is subject to the statewide 6% sales tax on purchases. This same 6% sales tax also applies to other non-cannabis businesses in Florida.

Specialized Services for Cannabis, CBD, and Hemp Enterprises

While cannabis, CBD, and hemp businesses each benefit from expert financial oversight, their requirements vary significantly due to distinct legal and regulatory frameworks.

• Cannabis: Cannabis businesses face more stringent regulations and unique tax challenges, especially due to Internal Revenue Code (IRC) Section 280E, which limits typical tax deductions. This provision emphasizes the need for accurate cost accounting.
• CBD and Hemp: Since these products are federally legal, CBD and hemp businesses can deduct standard business expenses. However, they must adhere to Florida's detailed sales tax requirements, especially for CBD products, which can be complex.

Specialized Services for Cannabis Enterprises

In addition to general accounting services, cannabis businesses require specific services tailored to industry needs:

• 280E Compliance: Creating strategies to maximize deductions for Cost of Goods Sold (COGS) within Section 280E constraints.
• Inventory Management: Ensuring meticulous records for regulatory compliance and accurate cost tracking.
• Cash Management: Establishing robust controls to manage the cash-heavy nature of cannabis transactions.
• Regulatory Reporting: Keeping up with Florida’s particular reporting requirements to ensure full compliance.

Importance of Specialized Accounting for Cannabis Enterprises

Navigating Florida's intricate cannabis tax and regulatory landscape demands accountants with a comprehensive understanding of state-specific laws. Cannabis-specialized accountants assist businesses by:

• Reducing tax liabilities through available deductions, credits, and incentives.
• Ensuring compliance with evolving state and federal regulations.
• Supporting strategic financial decisions that promote long-term profitability and growth within Florida’s unique legal framework.