Cannabis Accounting in Denver, CO
Evergreen does accounting and tax for cannabis operators — and only cannabis. 280E-savvy cost accounting, clean METRC reconciliation, and compliance that keeps you audit-ready and paying the least tax the law allows.
The 280E Problem, Solved
Cannabis is taxed like no other business. A specialist CPA is the difference between thriving and closing.
Cannabis Is All We Do
We serve licensed cannabis operators exclusively — cultivation, retail, and vertically integrated. We live in 280E.
280E-Optimized Cost Accounting
Under 280E you can only deduct COGS. We structure your cost accounting to maximize it — legally, defensibly, and audit-ready.
Seed-to-Sale Reconciliation
We reconcile your books to METRC and your POS so your financials, inventory, and compliance all tell the same story.
Audit-Ready, Always
Cannabis draws IRS and state scrutiny. We keep your records clean and your positions defensible so an audit is a non-event.
Accounting Built for Cannabis
🌿 Licensed Cannabis Operators ✓ 280E Specialists 📋 Audit-Ready
We Speak Cannabis and 280E
Evergreen Cannabis CPAs was founded in 2016, when Colorado's cannabis industry was booming and operators were discovering — often too late — that a normal accountant could sink them. IRS Section 280E disallows nearly every ordinary business deduction for cannabis, meaning you're taxed on gross profit, not net. Get your cost accounting wrong and you can owe more in tax than you make. Get it right and you survive and thrive.
We do cannabis and only cannabis. That focus means we've kept the books for 200+ licensed operators, we know exactly how to structure your COGS to minimize your 280E tax legally, and we reconcile your financials to METRC so nothing raises a flag. From your first dispensary to a vertically integrated operation, we're the CPAs who understand the one industry the rest of the profession is afraid of.
- ✓Licensed cannabis operators only
- ✓280E cost-accounting specialists
- ✓METRC & seed-to-sale reconciliation
- ✓200+ operators · 10 years
The Cannabis-Specialist Difference
In an industry where the wrong accountant can end you, specialization isn't optional.
We Master 280E
Maximizing deductible COGS within 280E is the single biggest lever in cannabis tax. It's our core expertise, done defensibly.
Compliant & Audit-Ready
METRC reconciliation, clean books, and defensible positions mean IRS or state scrutiny doesn't keep you up at night.
We Know the Whole Chain
Cultivation, manufacturing, distribution, retail — we understand the accounting at every tier and how they connect.
Banking & Real-World Help
Cash handling, banking relationships, and the practical compliance headaches unique to cannabis — we've solved them before.
Trusted by Colorado Cannabis
Evergreen restructured our cost accounting so more of our expenses flow through COGS — which under 280E is the whole game. They cut our effective tax rate dramatically and did it by the book.
Our old accountant had no idea how 280E worked and it nearly sank us. Evergreen actually specializes in cannabis — they fixed our books, our tax method, and our seed-to-sale reconciliation. Lifesavers.
Banking, compliance, METRC reconciliation, 280E — the stuff that keeps cannabis owners up at night. Evergreen handles all of it and keeps us audit-ready. Worth every dollar in this industry.
When we opened, Evergreen structured our entities and set up cannabis-specific accounting from day one. Starting compliant and 280E-optimized saved us from mistakes that cost other operators everything.
Why Cannabis Pays Tax Like No One Else
Because cannabis remains federally illegal, IRS Section 280E forbids cannabis businesses from deducting ordinary expenses — rent, marketing, most wages, utilities. You can only deduct Cost of Goods Sold. The practical result: cannabis operators are taxed on gross profit and routinely face effective tax rates that would bankrupt a normal business. The entire game is legally allocating as much cost as possible into COGS. That takes cannabis-specific cost accounting done right — and it's exactly what we do, every day, defensibly.
- ✓Maximize legally deductible COGS
- ✓Lower your effective 280E rate
- ✓Positions that survive an audit
Frequently Asked Questions
What is IRS Section 280E and why does it matter so much?
280E is a federal tax rule that disallows businesses 'trafficking' in controlled substances — including state-legal cannabis — from deducting ordinary business expenses. In practice, cannabis operators can only deduct Cost of Goods Sold, so they're taxed on gross profit rather than net. This can push effective tax rates far above other businesses. Minimizing your 280E impact through proper cost accounting is the single most important thing a cannabis CPA does.
How do you legally lower our 280E tax?
By structuring your operations and cost accounting so that as much expense as legally possible is captured within COGS, which remains deductible under 280E. The rules on what can be allocated to COGS are specific and have been shaped by case law. We apply them aggressively but defensibly, and document everything to stand up to an audit.
Do you reconcile to METRC and our POS?
Yes. We reconcile your financial records to your seed-to-sale tracking (METRC) and your point-of-sale system so your books, inventory, and compliance reporting all agree. Discrepancies are exactly what draw regulatory attention, so keeping them in sync is essential.
Our accountant doesn't really know cannabis. Is that risky?
Very. Cannabis accounting done by a generalist is one of the most common ways operators get into serious tax and compliance trouble. 280E, cost accounting, METRC, cash handling, and banking are specialized. Moving to a cannabis-focused firm is one of the best risk-reduction moves an operator can make.
Can you help a brand-new cannabis business get set up?
Absolutely. We structure your entities, set up cannabis-specific and 280E-optimized accounting from day one, and get your compliance and banking in order. Starting right is far cheaper than fixing it later — and in this industry, mistakes can be fatal.
How are your fees structured?
Most operators are on a flat monthly fee that covers accounting, tax method, and compliance, scoped to your size and license type. Given the stakes of 280E and cannabis compliance, specialist help pays for itself many times over. Your initial consultation is free.
How We Start
From first call to 280E-optimized and audit-ready.
Consultation
We review your operation, licenses, books, and tax method, and pinpoint your 280E and compliance exposure.
Optimize & Clean Up
We restructure your cost accounting to minimize 280E tax, reconcile to METRC, and get you audit-ready.
Run With You
Ongoing cannabis accounting, tax, and compliance so you stay optimized and never get blindsided.
Stop Overpaying Under 280E
Book a consultation and see how much a cannabis-specialist CPA can legally save your operation.
Book a Cannabis Consultation
Tell us about your operation and we'll show you where 280E and compliance are costing you. Response within one business day.