Cannabis & CBD Business Accounting Services (280E Compliant)
IRC Section 280E limitations and multi-state compliance are eating your margins. Twelix optimizes your books to minimize tax burden legally and accurately.
Mistakes cannabis & cbd owners make with their books
These aren't rare edge cases — they show up in almost every new client account we onboard.
Not maximizing COGS under 280E
Paying far more federal tax than legally required
We allocate every eligible cost to COGS per IRS guidelines to minimize your tax burden
Incomplete seed-to-sale tracking
Regulatory violations and inaccurate inventory valuation
METRC and Flowhub data reconciled to your books monthly
Commingling cash from multiple locations
Impossible to track per-location profitability
Each location gets its own chart of accounts and cash tracking
Are these showing up in your books right now?
Get a Free Books ReviewWe'll tell you exactly what we find — no charge.
Cannabis & CBD Bookkeeping Challenges
IRC Section 280E
Cannabis businesses cannot deduct most expenses for federal tax purposes. Only COGS is deductible, making cost allocation critical.
State Compliance
Each state has different cannabis regulatory and reporting requirements for financial records.
COGS Optimization
Maximizing what qualifies as cost of goods sold directly reduces your tax burden under 280E.
Banking Challenges
Limited banking options and cash-heavy operations create unique reconciliation and reporting needs.
Our Cannabis & CBD-Specific Services
Twelix assigns you a bookkeeper with deep cannabis & cbd expertise. Not a generalist — a specialist who knows your business model.
Numbers that actually tell you how your cannabis & cbd business is performing
If your current books can't surface these, you're flying blind.
COGS as % of Revenue
Cost of goods sold divided by total revenue
Under 280E, this is your only deductible expense — maximize it legally
Revenue Per Location
Total sales divided by dispensary count
Identifies underperforming locations
Inventory Turnover
COGS divided by average inventory
Slow-moving product ties up cash and risks spoilage
Your bookkeeper should be surfacing these every month.
See How We ReportTools We Work With
Cannabis & CBD tax deductions our bookkeeping service tracks for you
These write-offs are built into how we categorize your expenses from day one — so nothing slips through at tax time.
Note: 280E Limitations Apply
Cannabis businesses cannot deduct most ordinary business expenses — only COGS is deductible
Cultivation Costs
Seeds, nutrients, soil, lighting, and growing supplies allocated to COGS
Processing & Packaging
Extraction, manufacturing, and packaging labor and materials
Distribution Costs
Transportation, logistics, and delivery costs for product distribution
Quality Testing
Lab testing, compliance testing, and quality assurance costs
Facility Costs (COGS portion)
Rent and utilities allocated to production space — not retail
Every one of these is included in how we run your books.
See What's Included in Your PlanFlat monthly rate · No contracts · Start in 48 hrs
Why Cannabis & CBD Businesses Choose Twelix
We don’t just keep your books — we give you the financial clarity to run your cannabis & cbd business with confidence.
Bookkeepers with cannabis industry and 280E compliance expertise
COGS allocation optimized to minimize federal tax burden
State regulatory reporting maintained for every jurisdiction
Cash-based operations reconciled accurately
24-hour response time on all communications
Cannabis & CBD Bookkeeping FAQ
Yes. We specialize in 280E-compliant bookkeeping that maximizes your deductible COGS while maintaining full compliance.
We maintain financial records that meet regulatory requirements in every state where you operate.
We implement robust cash management and reconciliation procedures to ensure every dollar is accounted for.
We track cultivation, processing, and distribution costs for proper COGS allocation under 280E.
Yes. We provide per-location and consolidated reporting for multi-location cannabis operations.
What our cannabis & cbd bookkeeping service covers — already
These aren't questions you need to bring to a meeting with us. They're already built into how our service works.
We optimize COGS allocation under IRC 280E
Cost of goods sold is allocated correctly and maximized legally — the single most important bookkeeping decision for cannabis profitability.
We reconcile seed-to-sale tracking systems to your financials
METRC, Flowhub, and Dutchie inventory data is reconciled to your books monthly — so financial and compliance records always match.
We maintain daily cash reconciliation procedures
Cash-heavy operations get daily tracking with proper documentation — armored car coordination, vault counts, and bank deposit matching.
We maintain separate compliance records for each state
Multi-state operations get state-specific books and consolidated reporting — meeting every jurisdiction's requirements without duplication.
We separate retail, cultivation, and processing financials
Each license type or business unit gets its own P&L — so profitability and compliance are tracked at the right level.
All of the above is already built into every Twelix engagement — and we can show you on your first call.
Book My Free CallRelated Industries
Ready to Fix Your Cannabis & CBD Books?
Book a free consultation. We will review your situation and give you a firm quote within 24 hours. No sales pressure.