New Jersey Cannabis Accounting Services

At CJBS, we are Cannabis CPAs Who Care.  

CJBS intricately understands the tax and accounting challenges of state-legal medical and adult-use cannabis businesses–and we are here to serve as your partner in navigating those challenges. The cannabis industry is unique, New Jersey’s cannabis program is unique, and so is your business. That’s why the CJBS Cannabis Team is focused on tailoring solutions to meet your company’s needs.

Whether you operate as a new or established cannabis cultivator, processor, and/or retail dispensary, our experts are here to help you grow and scale your business in today’s ever-competitive environment. 


Cannabis in New Jersey

Both medical and adult-use cannabis are legal today in New Jersey. New Jersey’s strictly regulated medical cannabis program launched in late 2012. Today the program has 110,00 patients according to the Cannabis Regulatory Commission. In the first three quarters of 2022, medical sales totaled $176.2M. 

The state’s adult-use market, which opened in April 2022, is projected to reach $2B by 2026. Today, 22 dispensaries serve the adult-use market. 

Cannabis Taxes in New Jersey

Consumers who purchase adult-use cannabis in New Jersey from retailers and microbusinesses must pay the state’s standard sales tax rate of 6.625%. Municipalities in New Jersey also have the discretion to impose a local transfer tax of up to 2% on adult-use cannabis. 

Cannabis cultivators in New Jersey must also charge a Social Equity Excise Fee (SEEF) tax of $1.52 per ounce of cannabis on the sale or transfer of adult-use cannabis to other cannabis establishments, excluding sales or transfers to other cultivators. 

Medical cannabis users in New Jersey are not required to pay sales tax as of July 1, 2022. 

Seeking For Financial Solutions? We Can Help. 

The CJBS team has deep experience in cannabis tax laws and accounting in 15+ cities and throughout the rest of New Jersey. 

Working hand-in-hand with our cannabis clients, we provide a full suite of services—including compliance expertise, tax-saving solutions, and business strategies—to help you plan for long-term success. 


Cannabis in New Jersey FAQs

When do I need to hire a cannabis accountant in New Jersey?

In the cannabis industry, it is always better to be proactive, rather than reactive. To help prevent your business from costly fees or even greater legal penalties, you should hire an accountant as soon as you submit your application for licensure. 

Are there any financial requirements in the New Jersey license application?

Yes, cannabis businesses are subject to application fees, certification fees, licensing fees, change fees, among others. The NJ Cannabis Regulatory Commission has laid out those fees here

What types of tax deductions can cannabis businesses take in New Jersey? 

Tax exemptions are available for cannabis operators in New Jersey, including exemptions for purchases of production equipment or purchases for resale. (Source: NJ Treasury

But overall, cannabis businesses are very limited on the types of deductions they can take beyond cost of goods sold (COGS) because of IRS Tax Code Section 280E. In some instances, businesses will be able to take additional deductions, such as the research and development (R&D tax credit, for example. Nuances like these illustrate why it is important to work with an accountant that is up to date on cannabis tax laws. 


Our Core Values Guide Everything We Do

Our three core values — Trust, Collaboration, and Creativity — guide everything we do at CJBS, from our innovative client work to our interactions with each other. Our team has diverse personal backgrounds and specialties, but we share a common culture rooted in these values.

Trust

Trust is essential to all our work, but the stakes can be especially high for cannabis businesses, which face a higher risk of bankruptcy and IRS audits.

Collaboration

Close collaboration with our clients, matched with consistent and proactive communication, ensures that we’re always providing you with the insights, tools, and tactics for your cannabis tax and accounting needs.

Creativity

Creativity allows us to solve our cannabis clients’ unique challenges, such as having few traditional banking options and no bankruptcy protection.

Integrity

Our firm is guided by our employees’ integrity. In a burgeoning industry like cannabis, it is more important than ever to hold ourselves to high ethical standards, and follow through on what we say we’re going to do.

Transparency

We operate with transparency by communicating to our cannabis clients with unwavering candor, honesty, and respect.


Your Cannabis Accounting Experts

Matt Bergman, CPA and CJBS senior partner, has been with the firm since 1997 and has specialized in cannabis accounting and tax services since 2015, when an existing client won a license under the Illinois medical cannabis pilot program. Matt worked hand in hand with them to help grow and scale their business, safely and efficiently. That business grew rapidly and was soon acquired by one of the country’s largest MSOs (multistate operators), and they remain a CJBS client to this day. Matt works with clients from small startups to the country’s biggest MSOs. After growing up in Deerfield, IL and Boston, MA, Matt lives in Wilmette, IL with his wife, two children, and three dogs.

Ryan Guedel, CPA and CJBS partner, has been with the firm for 10+ years, and currently works with clients in cannabis, real estate, manufacturing, construction, and distribution. Ryan coordinates due diligence engagements, carries out audits and reviews, and works on business development and taxation for the firm. A devoted professional, Ryan gives his all with each and every client interaction. His personal motto is “hard work and more hard work.” Ryan currently resides in Wheeling, Ill., with his wife Julie, son Cole Jameson, and rescue dog Pinky. He likes the area for its proximity to the CJBS offices. His hobbies include cheering on the NY Yankees, mixed martial arts, and motorsports.

News & Updates

Stay current on the latest Cannabis industry developments and find out what it means for you and your business.

How CJBS Helps Windy City Cannabis Make Quick and Experience-Driven Decisions 
Image is not available
How CJBS Helps Windy City Cannabis Make Quick and Experience-Driven Decisions 
In the early days of Illinois medical cannabis legalization, licensed cannabis retailer Windy City Cannabis needed assistance in setting up their business for success during the growth of the medical market, and eventually, the launch of the state’s adult-use market.  Windy City’s former parent company–while growing rapidly–didn’t have a dedicated in-house finance department, so they
Is Your Cannabis Tax Credit Worth a Higher Likelihood of Being Audited? 
Image is not available
Is Your Cannabis Tax Credit Worth a Higher Likelihood of Being Audited? 
Taking credits can raise flags with the IRS–and audits can be time-consuming and costly. Here’s what to consider before opting to save a little extra at tax time.  Should you take a tax credit if it means your cannabis business will have a greater chance of being audited?  “It depends,” says CJBS Partner Ryan Guedel,
16 Tax Tips for Cannabis Operators in 2023
Image is not available
16 Tax Tips for Cannabis Operators in 2023
A comprehensive round-up of tax pointers for plant-touching businesses in the cannabis industry from CJBS Senior Partner Matt Bergman, CPA.  Cannabis’s federal illegality and stringent regulations for state-legal businesses make taxation in the cannabis industry difficult to navigate–and that’s an understatement.  CJBS Senior Partner Matt Bergman, CPA, knows these complexities well, having operated in the
How Cannabis Operators Can Improve Their Data Security
Image is not available
How Cannabis Operators Can Improve Their Data Security
Internal controls are procedural safeguards put in place to protect access to financial information and transactions.  Setting up internal controls is critical for any business to prevent fraud, but it is even more important for cannabis operators–as the industry is especially susceptible to fraud.  We discuss internal controls in detail in this webinar with Partner
Adult-Use Cannabis Is Now Legal in Minnesota: Here Are Some Business and Financial Tips for Hopeful Operators 
Image is not available
Adult-Use Cannabis Is Now Legal in Minnesota: Here Are Some Business and Financial Tips for Hopeful Operators 
On May 30, Minnesota joined 22 other U.S. states in legalizing adult-use cannabis.  Building off of a strict medical cannabis program with only two operators and 15 dispensaries, hopeful cannabis business owners will have the opportunity to enter an uncapped license market to provide adult-use cannabis to adults aged 21 and older.  By 2027, annual
Cannabis Fraud Prevention: Internal Controls Businesses Should Never Operate Without 
Image is not available
Cannabis Fraud Prevention: Internal Controls Businesses Should Never Operate Without 
The cannabis industry is especially susceptible to fraud, not only because of the stigma the industry still faces, but also because state-legal businesses are still so new and are growing quickly.   Yet when fraud hits your business, it can be devastating to your finances as well as your reputation.  Fortunately, there are steps you can
Proper Internal Controls Are Key to Preventing Cannabis Industry Fraud
Image is not available
Proper Internal Controls Are Key to Preventing Cannabis Industry Fraud
Here, we outline ways your cannabis business can safeguard against internal and external fraud attempts.  Cannabis is still a nascent industry—yet cannabis businesses throughout the United States have already seen their fair share of fraud. You may have heard the stories of internal theft, duped investors, cyberattacks, or inflated THC percentages on lab tests—the list
Your Cannabis Business Tax Planning Checklist
Image is not available
Your Cannabis Business Tax Planning Checklist
As the cannabis industry continues to grow, so does the need for proper tax planning. With constantly changing regulations and laws, it can be challenging for cannabis companies to stay up-to-date on their tax obligations. To ensure your cannabis company is maximizing their tax benefits while minimizing your liabilities, here is a comprehensive tax planning
How Cannabis Businesses Can Navigate Tax Season
Image is not available
How Cannabis Businesses Can Navigate Tax Season
Navigating tax season in a federally illegal industry can be complicated. The CJBS Cannabis Practice Team is here to help. In this 20-minute webinar recorded in February 2023, CJBS Senior Partner Matt Bergman, CPA and LKP Impact Consulting Principal Laurie Parfitt discuss what cannabis businesses need to know as they structure their business and prepare
Matt Bergman and Ryan Guedel: Cannabis CPAs Who Care
Image is not available
Matt Bergman and Ryan Guedel: Cannabis CPAs Who Care
CJBS’ Cannabis practice isn’t simply an add-on service to our accounting firm. We are deeply committed to helping cannabis business owners succeed in this emerging, challenging, and quickly evolving industry. Our team is immersed in this space, not only in Illinois’ medical and adult-use markets, but throughout the country. We’re constantly networking with industry leaders,
How CJBS Customizes Solutions For Your Cannabis Business
Image is not available
How CJBS Customizes Solutions For Your Cannabis Business
Whether you’re just starting out in the cannabis industry or are a multi-state operator — and whether you’re a cultivator, processor, or dispensary — our experienced cannabis experts tailor solutions to your specific challenges. Learn more from Matthew Bergman, CPA and Senior Partner below.
Growing Your Cannabusiness: Boosting Operational Efficiency — and Your Bottom Line
Image is not available
Growing Your Cannabusiness: Boosting Operational Efficiency — and Your Bottom Line
If you work in the cannabis business, you already know how fast-paced and complicated the industry is. Contending with tricky tax law and a high risk of IRS audits, along with limited banking options, are some of the constant challenges.  One challenge you might not be aware of is just how fast your cannabusiness is
How CJBS Helps Your Cannabusiness Manage Your Challenges
Image is not available
How CJBS Helps Your Cannabusiness Manage Your Challenges
Dear Clients & Friends,  There’s no doubt that cannabis is a big business, and the industry continues to grow by leaps and bounds. A recent study forecasts that legal cannabis sales in the U.S. will reach $43 billion by 2025. Also by 2025, 42% of the total annual U.S. demand is projected to be met
Navigating Cannabis Tax Law: Minimizing Risk & Maximizing Deductions
Image is not available
Navigating Cannabis Tax Law: Minimizing Risk & Maximizing Deductions
Legal marijuana has gone mainstream, and the cannabis industry is experiencing a boom that shows no signs of slowing down anytime soon. In 2020, global cannabis sales reached $19.7 billion. In the U.S. alone, sales hit a record $17.5 billion last year, according to cannabis market research leader BDSA.   Despite those huge numbers — and the