FAQs
Frequently Asked Questions
Answers to the questions operators ask most often about cost accounting, tax treatment, recordkeeping and how engagements work.
These answers are general and educational. Confirm anything affecting a filing position or a licensing obligation with your own tax adviser and counsel.
Working With Our Firm
- What does Florida Cannabis CPA do?
- We provide accounting, bookkeeping, tax preparation, cost accounting, reconciliation, payroll and fractional CFO advisory support for licensed cannabis operators and the businesses that serve them.
- How do engagements begin?
- With a consultation. We review your current records, systems and immediate pressures, then propose a written scope with defined deliverables and responsibilities.
- Can you work with our existing bookkeeper or CPA?
- Yes. Many clients keep internal bookkeeping and engage us for methodology, review, reconciliation or filings. The division of work is documented at the start.
- Do you serve businesses outside the state?
- We work with multi-state groups and with ancillary businesses that operate across state lines. Multistate filings require a nexus review before scoping.
280E and Taxation
- What is Section 280E and why does it matter?
- Section 280E is a federal provision that disallows ordinary business deductions for trades or businesses trafficking in federally controlled substances. Cost of goods sold remains available because it reduces gross income, which is why inventory and cost accounting drive the tax outcome.
- Does Florida impose a state income tax on cannabis businesses?
- Florida imposes no personal income tax. Entities taxed as corporations are generally subject to Florida corporate income tax, computed starting from federal taxable income with state modifications. Entity type determines the treatment, so confirm yours with your adviser.
- Is medical marijuana subject to sales tax in Florida?
- Medical marijuana dispensed to qualified patients under the state program is generally treated differently from ordinary retail merchandise, while accessories and other non-medical items may be taxable. Confirm taxability by category with current Department of Revenue guidance.
- Can you guarantee tax savings?
- No. We do not promise tax savings, audit protection or guaranteed deductions. We build documented, consistent methodology and support it with evidence.
Compliance and Records
- Who regulates licensed cannabis operators in Florida?
- The Office of Medical Marijuana Use within the Florida Department of Health administers the state's medical use of marijuana program and oversees licensed Medical Marijuana Treatment Centers.
- How does vertical integration affect accounting?
- A single license holder may cultivate, process, transport and dispense, so production, distribution and retail activity coexist in one entity. Cost segregation and internal transfer costing become essential to both tax documentation and management reporting.
- How often should tracking data be reconciled to the books?
- Daily for sales and cash activity, and at least monthly for full inventory, with cycle counts in between and documented investigation of every variance outside tolerance.
- What records matter most in an examination?
- Inventory reconciliations, cost allocation schedules with documented drivers, time and payroll records tagged by function, and a written methodology memorandum.
Consultations and Communication
- Is the consultation confidential?
- Information you share is treated as confidential business information. Submitting the form does not by itself create a CPA-client relationship; that begins with a signed engagement letter.
- What should I avoid sending through the website form?
- Do not submit Social Security numbers, tax returns, banking information or other sensitive financial documents through the form. We will arrange a secure method for document exchange.
- How quickly will someone respond?
- We aim to respond to consultation requests within one business day. For time-sensitive matters, call (850) 848-4353.
Still looking for something? Browse the resource guides, review our services, or contact us.
Talk through your accounting position
A short conversation is usually enough to identify where documentation, inventory costing or reporting needs attention.