Starting July 1, 2025, cannabis retailers across California will face a significant tax shift: the cannabis excise tax rate will increase from 15% to 19% of gross receipts from retail cannabis sales. This 4% jump announced by the California Department of Tax and Fee Administration (CDTFA) is not arbitrary. It’s a recalibration mandated by Revenue… Continue reading How to Stay Ahead of California’s 2025 Cannabis Tax Hike
Category: Blog
Financial Implications of Cannabis Business Structures
Choosing the Right Entity for Long-Term Success in California’s Cannabis Industry If you are operating or planning to start a cannabis business in California, one of the first and most important decisions you’ll face is choosing the right business structure. While some industries can afford to treat entity selection as a formality, cannabis entrepreneurs don’t… Continue reading Financial Implications of Cannabis Business Structures
Cash Flow Management for Cannabis: Best Practices for Cash Handling
Managing cash flow effectively is crucial for any business, but in the cannabis industry where cash transactions are the norm, it becomes even more critical. Without proper cash flow management, even a thriving dispensary or cultivation operation can run into financial trouble. Cannabis businesses in Los Angeles (and across the country) must juggle large amounts… Continue reading Cash Flow Management for Cannabis: Best Practices for Cash Handling
The Impact of AB 1775 On-Premise Consumption in California
The state of California recently passed AB 1775, which for the first time will allow for Amsterdam-style cannabis cafes and restaurants throughout the state. The introduction of on-premise consumption marks a significant change to the state’s regulatory framework, so it’s critical for cannabis operators to remain compliant. Here’s everything you need to know. Key Features… Continue reading The Impact of AB 1775 On-Premise Consumption in California
How Cannabis Bookkeeping Differs from Traditional Accounting
Specialized accounting services are crucial for success in the evolving cannabis regulatory environment, as more states go legal. Working with 420 Accounting Services provides customized solutions created specifically for cannabis businesses. Our knowledge regarding compliance with IRS regulations helps reduce risks related to audits and regulatory inspections. By selecting a dedicated cannabis bookkeeping service,… Continue reading How Cannabis Bookkeeping Differs from Traditional Accounting
Choosing the Right Cannabis CPA in California: Key Considerations for Your Dispensary
Dispensaries operating in California must navigate complex regulations and tax codes, making financial guidance essential for sustainable operations. A CPA with deep subject matter expertise can provide crucial support in: Ensuring compliance with state and federal laws Developing effective tax strategies Enhancing overall financial stability An experienced California cannabis CPA not only understands the intricacies… Continue reading Choosing the Right Cannabis CPA in California: Key Considerations for Your Dispensary