For cannabis operators, the cost of goods sold (COGS) is far more than an accounting line item.  It’s the most critical financial number in the entire business. Under IRC Section 280E, most ordinary business deductions are disallowed, making COGS the primary mechanism for reducing taxable income.  At the same time, COGS drives pricing decisions, product […]

Why Most Cannabis COGS Would Fail an Audit — and How Operators Can Fix It