Monthly Archives: September 2025

Why Cannabis Businesses Must Move Beyond Cash Basis Accounting For many small businesses, cash basis accounting feels simple and sufficient. Money comes in, money goes out, and the books reflect that flow. But for cannabis operators—especially cultivators, processors, and vertically integrated businesses—cash basis accounting can be dangerously misleading. To scale effectively, defend financials under IRS

Equivalent Units of Production vs. Real-Time Costing in Cannabis In traditional manufacturing, accountants rely on Equivalent Units of Production (EUP) to spread costs across finished goods and work-in-progress (WIP). It’s a clever workaround for systems that don’t capture costs in real time: if a batch is 50% complete, you treat it as “half a unit”