Running a cannabis business is not for the faint of heart. Strict federal regulations, tax code hurdles, and banking limitations make financial management a high-stakes game. That’s where High Times Accounting steps in. Based in Massachusetts, the firm specializes in helping cannabis operators navigate the industry’s unique financial challenges—adhering to compliance regulations while maximizing profitability.
“We quickly realized that many cannabis companies weren’t managing their accounting properly, especially with Section 280E and sales tax audits,” said Jaime Lynn Soares, co-founder of High Times Accounting. “Our goal is to help them stay compliant and financially healthy while they focus on running their business.”
The Challenge of Cannabis Finance
Unlike conventional businesses, cannabis companies face a maze of financial obstacles. Section 280E of the Internal Revenue Code prevents them from deducting many standard business expenses, making it critical to track every allowable deduction. Additionally, banking remains a major hurdle, as many institutions refuse to work with cannabis businesses due to federal prohibition.
Soares and her team assist clients with banking, payroll, and tax compliance so every dollar is accounted for and properly reported.
“One of the biggest mistakes we see is businesses using cash transactions without properly tracking them,” Soares explained. “All income must go into the bank first before being spent—otherwise, it becomes difficult to prove expenses during audits.”
Customized Accounting for Cannabis Operators
High Times Accounting tailors its services to the specific needs of cannabis cultivators, manufacturers, and dispensaries. Their offerings include:
- Bank account reconciliation to track all revenue and expenses
- Sales tax assistance to prevent costly errors in reporting
- Payroll management with cannabis-friendly providers
- QuickBooks setup and oversight to ensure accurate financial records
- Audit preparation to avoid regulatory penalties
Understanding state-specific regulations is another key focus.
“We work with clients in Massachusetts, Maine, and Vermont, and each state has its own compliance requirements,” Soares said. “What works in one market may not apply in another, so we make sure our clients are covered no matter where they operate.”
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A Growing Need for Expertise
With more states legalizing cannabis, financial regulations will continue to evolve. Soares predicts that federal legalization will eventually eliminate the burdens of Section 280E, but until then, cannabis businesses must stay vigilant.
“It’s getting easier, but we’re still a long way from being treated like any other industry,” she said.
For now, businesses that want to stay compliant and competitive need to take financial management seriously.
“If you don’t have your accounting in order, you’re not going to attract investors, secure loans, or even stay in business,” Soares warned.
As the cannabis industry grows, High Times Accounting is making sure businesses in the Northeast and beyond have the financial tools they need to succeed.
