Editorial 2026

Welcome to the 2nd Edition of the Top 200 Cannabis Accountants 2026 published by Cannabis Law Report, Top 200 Cannabis Lawyers Directory(5th Edition)  & The Top 200 Psychedelics Lawyers Directory (4th Edition).

We have compiled the accountants and CPAs we believe, to be the top 200 practitioners in the field.

These listings include individuals from teams at multi state practices as well as individuals who serve specific local markets for cannabis businesses both big and small.

Sean Hocking
Editor – Top 200 Cannabis Accountants
info@cannabislaw.report

Once again most of our entries are US based individuals either working for general as well as specialist cannabis accountants; or, running their own tax advice consultancy for cannabis businesses.

We have, this year, also included individuals both in the private and public sectors who have an accounting background and act as financial directors or work at executive level providing accounting and financial advice to their organisations.

Cannabis accounting doesn’t occupy as large a space as cannabis law but I note with over 25% of our entries being updated from the previous edition of the directory that there is an element of consolidation in the space as the cannabis/ hemp  market matures and as we highlight below the onset of re-scheduling is likely to further concentrate skills and services as 280e is slowly removed from the equation.

 

The US Treasury

April 23, 2026: Treasury, IRS Announce Process for Tax Guidance Following DOJ Final Order on Medical Marijuana Rescheduling

WASHINGTON – Today, the U.S. Department of the Treasury and the Internal Revenue Service (IRS) announce that they plan to issue guidance that addresses the federal tax consequences of the U.S. Department of Justice’s (DOJ) Final Order implementing President Trump’s Executive Order on Increasing Medical Marijuana and Cannabidiol Research.

BACKGROUND:

The Executive Order on Increasing Medical Marijuana and Cannabidiol Research was issued on December 18, 2025 and directed the Attorney General to complete the process for moving medical marijuana from Schedule I to Schedule III under the Controlled Substances Act (CSA). 

DOJ’s Final Order places marijuana contained in FDA-approved products or subject to a state medical marijuana license, as well as certain marijuana extracts and certain naturally derived delta-9-tetrahydrocannabinols, in Schedule III, while leaving unlicensed marijuana crops, bulk marijuana, and any marijuana and marijuana extract that has not yet been incorporated into a FDA-approved drug product in Schedule I.

Read more here.

FORTHCOMING GUIDANCE:

Treasury and the IRS expect DOJ’s action to have significant positive tax consequences for businesses in the medical marijuana industry, and Treasury and the IRS plan to issue guidance to address the principal federal tax issues stemming from the Final Order.

Section 280E of the Internal Revenue Code generally disallows deductions and credits for any amounts spent in carrying on a business that consists of trafficking in Schedule I or II controlled substances prohibited by federal or state law. Accordingly, rescheduling generally removes section 280E as a bar to claiming deductions and credits for businesses that as a result of the Final Order no longer traffic in Schedule I or II controlled substances under the CSA.

Guidance is expected to clarify the ways in which, for businesses with multiple activities, section 280E applies only to those activities related to trafficking in Schedule I or II controlled substances (e.g., by apportioning expenses). 

Guidance is also expected to include a transition rule providing that, for purposes of section 280E, rescheduling generally will be considered to first apply for a business’s full taxable year that includes the effective date of the Final Order, for the business’s activities that do not involve Schedule I or II controlled substances as a result of the Final Order. 

DOJ Rescheduling, April 2026, and 280e

The Department of Justice (DOJ) Final Order, effective April 22, 2026, has now reclassified state-licensed medical cannabis from Schedule I to Schedule III under the Controlled Substances Act (CSA). 

This move fundamentally alters the tax landscape for cannabis businesses by removing the primary barrier to standard business deductions. 

Impact on Section 280E

Section 280E of the Internal Revenue Code prohibits businesses from deducting ordinary business expenses (like rent, payroll, and marketing) if they are “trafficking” in Schedule I or II controlled substances. 

  • Immediate Relief for Medical Operators: Because 280E only applies to Schedule I and II substances, state-licensed medical cannabis operations are now exempt from these restrictions.
  • Adult-Use Transition: For recreational (adult-use) cannabis, 280E relief is expected once the broader administrative hearing process, scheduled to begin June 29, 2026, is finalised.
  • Cash Flow and Profitability: Rescheduling could represent an estimated $2.3 billion tax break for the industry, allowing companies to pivot from paying tax on gross income to paying tax on net income.
  • Retroactive Claims: The DOJ Order mentions potential retroactive relief, but the IRS has previously stated that 280E applies until a final rule is issued. This remains a high-stakes area for litigation and future guidance. 

How Accountants Can Assist Clients

Under the new regime, the role of accountants shifts from “tax survival” to strategic growth and complex compliance. 

  • Tax Planning & Amended Returns: Accountants should evaluate the feasibility of filing protective refund claims or amending 2026 tax returns to claim previously barred deductions.
  • Inventory & COGS Tracking: While 280E necessitated rigorous tracking of Cost of Goods Sold (COGS) to maximise the only available deduction, accountants must now transition clients to standard GAAP or Section 162/164 reporting.
  • DEA Registration Support: Medical operators are granted an expedited DEA registration process. Accountants will need to assist with the financial documentation required for federal oversight and licensing.
  • Capital Allocation Advice: With the sudden influx of cash flow from tax savings, accountants can help clients strategise on expansion, debt reduction, or improving corporate governance to attract new institutional investors.
  • Compliance for Dual-Market Operators: For clients serving both medical and recreational markets, accountants must carefully bifurcate expenses until adult-use rescheduling is officially concluded

The market for cannabis accounting services has expanded in 2025 – 2026 .

The U.S. legal cannabis market reached nearly $40 billion in 2024 and the need for accountants to manage high-volume cash transactions, multi-state license compliance, and rigorous audits has grown accordingly.

The industry is also currently undergoing a “structural transformation” toward more professionalized supply chains. This requires more sophisticated financial reporting, further driving demand for expert services.

A range of forecasts estimate the broader U.S. cannabis market could surpass the $40 billion mark by 2027, supporting a continued upward trajectory for the ancillary accounting sector. 

What Type of Services Do Cannabis Accountants Provide For Their Clients?

Please note that the information below, in the main, applies to cannabis accountancy services in the US.

Cannabis accountants provide specialised financial and regulatory services tailored to the unique legal and operational challenges of the marijuana industry.

Their primary role is to ensure businesses remain compliant with complex tax laws while maintaining clean financial records in a cash-heavy environment.

Core Responsibilities

  • IRC Section 280E Management:
    • Accountants navigate IRS Section 280E, which prohibits cannabis businesses from claiming standard business deductions because cannabis is a Schedule I controlled substance.
    • They focus on accurately allocating costs to Cost of Goods Sold (COGS), which is the only way these businesses can legally reduce their taxable income.
    • Focus on changes to the 280e structure post re-scheduling
  • Seed-to-Sale Reconciliation:
    • Ensure that financial records perfectly match inventory tracking data from mandatory “seed-to-sale” software (like Metrc or Bio Track)
    • Track and manage discrepancies between physical inventory and accounting software can trigger audits or license revocations.
  • Cash Management and Internal Controls:
    • Since many cannabis businesses lack traditional banking firms implement strict anti-money laundering (AML) protocols and “Know Your Customer” (KYC) procedures.
    • They manage heavy cash-handling procedures to prevent internal theft and ensure accurate reporting for Form 8300 (reporting cash payments over $10,000).

Financial and Advisory Services

  • Regulatory Compliance:
    • They prepare businesses for state-level audits and ensure all local excise and sales taxes are paid correctly.
    • Many firms, such as The Canna CPAs, offer comprehensive risk assessments to identify vulnerabilities in the regulatory landscape.
  • Inventory Management:
    • Accountants analyze the true cost of holding inventory including storage and obsolescence, to help optimize cash flow.
    • They use sales data to forecast needs and set up automated tracking software.
  • Audit Preparation:
    • Cannabis businesses are audited more frequently than traditional companies. Accountants maintain “audit-ready” books to prove that every dollar and gram of product is accounted for.
  • Strategic Consulting:
    • They provide advice on business structure (e.g., separating real estate from operations) to mitigate the impact of 280E and improve long-term profitability.