Cannabis bookkeeping isn't standard bookkeeping. A dispensary's chart of accounts must separate plant-touching and non-plant-touching costs to enable 280E compliance. METRC data must reconcile against POS records and financial statements monthly. State excise taxes, sales taxes, and license fees each need their own tracking lines. 420Ledger's monthly bookkeeping service is purpose-built for cannabis — not adapted from a general-accounting template.
Every bookkeeping client gets the full scope — monthly close, METRC reconciliation, 280E-aware coding, and financial statements every month.
We close your books by the 15th of the following month. Every month, without exception. Clean monthly financials that are ready when you need them — for lenders, investors, or your own operational decisions.
We build and maintain a chart of accounts structured for 280E compliance — separating COGS, plant-touching costs, and non-plant-touching operating expenses. This separation is not optional; it is the foundation of every tax position we take for you.
We reconcile your METRC data against your POS sales records and your financial books every month. Discrepancies are identified and resolved before they become regulatory issues with your state cannabis authority.
Every account reconciled to the penny each month. Cannabis businesses operate with higher cash volumes than most industries. Clean reconciliation is not just good practice — it's the IRS's first request in any examination.
Profit and loss, balance sheet, and cash flow statement — produced every month. These statements are 280E-aware: your effective taxable income is visible every month, not only when your tax return is due.
Every transaction coded to the correct account. Plant-touching expenses correctly allocated from non-plant-touching costs. This monthly work is what makes your annual 280E return defensible.
If your business touches cannabis, your books need cannabis-specific treatment. We serve every license type across 27 states.
Your primary revenue center. We track per-location P&L, excise tax liability, sales tax collected, and COGS by product category — everything your 280E return needs.
Cultivation COGS is complex: labor, inputs, facility overhead, depreciation. We build the cost accounting infrastructure cultivators need to maximize their COGS position under 280E.
Processing adds another layer of COGS complexity — trim allocation, extraction costs, packaging. We track it correctly.
If your business touches cannabis, your books need cannabis-specific treatment. We serve every license type in all 27 states.
Cannabis bookkeeping requires a specialist because of IRC §280E. A standard chart of accounts separates revenue and expenses but doesn't separate them in the way 280E compliance requires — between plant-touching costs (which cannot be deducted) and COGS (which can). A general bookkeeper who doesn't understand 280E will miscategorize expenses, leave deductible COGS on the table, and produce financials that aren't defensible at tax time. 420Ledger builds every cannabis chart of accounts specifically for 280E compliance.
420Ledger works with QuickBooks Online as the primary accounting platform for cannabis clients. QBO integrates with most cannabis POS systems and allows us to maintain the cannabis-specific chart of accounts structure required for 280E compliance. We configure the account structure, connect bank feeds and POS integrations, and maintain the books on an ongoing basis.
METRC is the seed-to-sale tracking system used in most legal-cannabis states. Your METRC data tracks every unit of cannabis inventory — what came in, what was processed, what was sold. We reconcile your METRC data against your POS sales records and your financial statements every month. Discrepancies between METRC inventory, POS sales, and financial records are caught and resolved before they become regulatory compliance issues.
A 420Ledger monthly cannabis bookkeeping engagement includes: monthly close by the 15th of the following month; bank and credit card reconciliation; METRC-to-POS reconciliation; transaction categorization into the cannabis-specific chart of accounts; and production of monthly financial statements — profit and loss, balance sheet, and cash flow. 280E-aware account coding is built in throughout, so your financial statements reflect your true 280E-adjusted taxable position every month.
Your monthly books are the foundation of your 280E tax return. If transactions are miscategorized throughout the year — if plant-touching costs are coded as operating expenses instead of COGS, or vice versa — your annual 280E return will either overstate your tax liability or create audit exposure. Clean, 280E-aware books every month mean your tax return is an accurate summary of work already done, not a retroactive reconstruction under time pressure.
All tiers include monthly close, METRC reconciliation, and 280E-aware financial statements. Pricing scales with location count and entity complexity.
Single-location dispensary. Monthly close, METRC reconciliation, COA maintenance, and financial statements.
Multi-location operators. Per-location books, consolidated statements, and METRC reconciliation across all locations.
MSOs and multi-entity operators. Entity-level and consolidated books across all 27 covered states.
Disorganized books compound. Every month of miscategorized transactions is a month you'll spend correcting later. Book a free consultation and we'll assess what it takes to get your books in order.
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