Accounting, Auditing and Tax Considerations for the Cannabis Industry Webcast | 4203928C

Course Details


Friday, January 22, 2021

6:30am – 10:00am
(Registration: 6:00am)

Field of Study


Course Number


CPE Credit

4.0 hours CPE credit

Level of Knowledge



CalCPA Education Foundation


Basic auditing, accounting, and tax experience


States have been passing legislation that legalizes cannabis for medicinal and recreational use, and the producers and retailers in this industry have been growing. Accounting and financial professionals are now tasked with navigating the often contrary state and federal laws. With cannabis being classified as a Schedule 1 controlled substance under the Federal Controlled Substances Act of 1970 and subject to federal prosecution, can CPAs offer services to clients that operate in this industry? If the CPA does offer services, what are the major tax issues (federal and state) that impact this industry? This course will answer these questions as well as provide the guidance that accounting professionals need to know to offer services in the cannabis industry.


  • Types of cannabis related businesses
  • Risk considerations for services offered in the cannabis industry
  • Recognizing what costs are and not considered cost of sales under IRC Section 380E
  • Recognize if the entity conducts a business separate from the cannabis sales that may allow some deductions aside from cost of sales
  •  State and federal tax differences
  • Cash based business audit considerations
  • Financial reporting considerations


Participants will be able to:

  •  Understand the risks of taking on a client in the cannabis industry
  • Recognize state reporting rules
  • Recognize federal reporting rules Differentiate between the federal and state filing requirements
  • Understand IRC Section 280E and what deductions are and not allowed to a cannabis business
  • Apply various state sales and excise taxes that apply to the sale of cannabis
  • Recognize why banks wont allow cannabis based businesses to open a bank account
  • Understand the treatment of revenue and inventory
  • Understand audit considerations
  • Understand sustainability reporting issues

Designed For

Any accounting or financial professional that works directly or indirectly in the cannabis industry or is interested in learning more about how this recent state legislation is impacting the accounting profession.

Registration for this course has passed.

Course Pricing

Member Fee

Applicable if you are a HSCPA member in good standing.

Non-Member Fee

Applicable if you are not a HSCPA member.

Your Price $201.00

CPE Choice

Learn more about CPE Choice.
This course does not qualify for CPE Choice.

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