OCM-Ready Accounting for NY Cannabis Operators
OCM-Ready Accounting for NY Cannabis Operators


Operating a cannabis business in New York requires more than standard bookkeeping. Between IRS Section 280E, OCM reporting requirements, and evolving state regulations, your financial records must be precise, defensible, and consistently maintained.

Pre-revenue, newly licensed, or scaling operations, our services are tailored to your current and future needs
The Canna Bookkeeper community for cannabis entrepreneurs. Follow as we share tips for navigating cannabis industry taxes and finance
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Yes. IRS Section 280E impacts how expenses are categorized and deducted. Proper bookkeeping is essential to remain compliant and minimize audit risk.
New York cannabis operators must maintain accurate, up-to-date financial records covering income, expenses, inventory, payroll, and taxes. Bookkeeping should be structured to support OCM reporting, 280E compliance, and audit readiness. This goes beyond basic bookkeeping and requires consistency, documentation, and clear categorization.
OCM requires accurate records covering sales, inventory, payroll, taxes, and supporting documentation. Consistent bookkeeping is critical for compliance.
Yes. Setting up compliant bookkeeping systems early helps prevent costly cleanup later. Pre-revenue and conditional license holders benefit from having proper financial structures in place before operations begin.
Cleanup timelines vary depending on volume, complexity, and how far behind the records are. Most cannabis bookkeeping cleanup projects take 30–90 days, with more complex operations requiring additional time. The goal is to restore accuracy and compliance—not just fill in gaps.
IRS Section 280E limits which expenses cannabis businesses can deduct, making proper expense categorization critical. Bookkeeping must clearly separate cost of goods sold (COGS) from non-deductible operating expenses. Incorrect bookkeeping under 280E can significantly increase tax liability and audit risk.
The New York Office of Cannabis Management requires detailed records related to:
Accurate, organized bookkeeping is essential to meet these requirements and respond to regulatory reviews.
Absolutely. All financial data is handled securely and confidentially.
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