Cannabis accounting software has to keep up with tax rules that are still moving. Section 280E of the Internal Revenue Code disallows deductions and credits for businesses trafficking in Schedule I or II substances. Since April 28, 2026, state-licensed medical cannabis sits in Schedule III, according to the Federal Register, while adult-use operators remain under 280E. Lucentive helps operators choose a system that keeps each license, and medical and adult-use activity, cleanly apart, then implements it.
Cost accounting that holds up
- Inventory valued in the ledger, with costs captured at each stage.
- Cost of goods sold calculated from the same records your team works from.
- An audit trail your tax advisers can follow.
One entity per license
Operators often hold several licenses in several entities. Each sits on one ledger with its own statements, and consolidated reporting comes from the system. Charges between licenses are recorded once.
Compliance systems connected
State tracking and point-of-sale systems stay where regulators and staff need them and send sales and inventory to the ledger.
Start with an honest check
The fixed-fee ERP advisory compares the options against your licenses and your reporting, and can end with keeping what you have.
Common questions
Do you give tax advice on Section 280E?
No. We build the accounting system so cost of goods sold is captured properly, and your tax advisers work from it. The tax position is theirs to take.
Can the system connect to our state tracking system?
State tracking and point-of-sale systems can send sales and inventory data to the ledger, so the books and the compliance records start from the same transactions.
Can each license keep separate books?
Yes. Each license can sit in its own entity with its own statements, while ownership sees consolidated results from the same system.
What happens to our current data?
Opening balances, inventory and the history you report on move across and are reconciled before go-live, then proved in a parallel close.
Do you only work with cannabis businesses?
No. The same approach serves any business where inventory costs and several entities drive the numbers.
How we work
- Assess: a fixed-fee advisory, usually two to four weeks, built from your actual close and ending in a recommendation you can act on.
- Implement: chart of accounts, integrations and data migration, proved by a parallel close before go-live.
- Support: the principal consultants who built the system stay on after launch.
Related services: Retail ERP Consultant and ERP Data Migration Services. Or see all our ERP consulting services.