If you are in the cannabis industry, it would behoove you to stay abreast of cannabis accounting updates. It’s the kind of news you want to stay on top of — much like you would with your neighbor’s petition to keep a jungle cat in their backyard. That is, you need to keep track of any changes that could threaten the safety of your business, because oftentimes what you don’t know can hurt you.

The accounting updates for this year may be somewhat indirect, but their impact is deeply tangible. Read on to learn what may be in cannabis’ accounting future in 2025.

Political Optimism

Some industry professionals, such as Cherry Bekaert, an advisory, assurance, and tax firm, see a bright future ahead for cannabis. For example, Cherry Bekaert argues that President Trump has previously been vocal in his sugpport of cannabis legalization, which could indicate a willingness to reschedule cannabis from a Schedule I to a Schedule III substance. The firm cites Trump’s support of the Florida ballot initiative to legalize adult recreational cannabis use — a move that didn’t go over so great with some of his Florida constituents.

Further, Cherry Bekaert notes that Trump has nominated individuals who also support legalization efforts. This includes former Florida Sheriff Chad Chronister, Trump’s first pick for head of the DEA, who has supported the decriminalization of small amounts of cannabis (up to 20 grams).

However, Cherry Bekaert may be too generous in its assessments of Trump’s picks, as Chronister did not support broader statewide legalization initiatives and holds more conservative views regarding cannabis. Moreover, while the firm suggests that Trump’s Attorney General, Pam Bondi, has “displayed flexibility toward cannabis policies,” this is misleading if not outright incorrect, as Bondi has previously opposed cannabis reform, including medical marijuana.

Additionally, the former acting head of the DEA, Derek S. Maltz, has a rather regressive attitude toward cannabis. And while he is no longer in charge, he did hold the position until May; thus, scrutinizing his beliefs is still valid. To wit, Maltz has made unfounded claims linking cannabis to school shootings and has espoused the long-debunked claim that cannabis is a gateway drug.

Cherry Bekaert also places faith in the administration’s willingness to pass the Secure and Fair Enforcement (SAFER) Banking Act — a piece of legislation that would help protect banks and other financial institutions from penalties for providing services to state-legal cannabis businesses. As it stands, the act has passed the Senate Banking Committee and now awaits a vote on the Senate floor later this year.

Finally, Cherry Bekaert points to the potential rescheduling of cannabis from a Schedule I to a Schedule III substance as another sign of hope. This change would be highly relevant to cannabis businesses and accounting, as it would mean companies would no longer be subject to the restrictive weight of IRC Section 280E — which prohibits businesses from deducting otherwise established business expenses from gross income associated with the “trafficking” of Schedule I or II substances.

While Cherry Bekaert may be optimistic about the administration’s stance on cannabis, citing Trump appointees with supposedly progressive views, a closer examination of these officials’ records tells a different story. Additionally, while rescheduling cannabis to a Schedule III substance would be significant, there is currently no concrete evidence that this will happen.

Financial Optimism and Legislative Monkey Wrenches

MJBiz, a leading cannabis business site, also has (tempered) optimism for cannabis accounting in 2025. It argues that the need for capital has led to fintech solutions — such as compliance tools, credit-risk ratings, and loan-structuring services. These developments are transforming cannabis businesses’ access to capital and how they control their finances, making accurate and transparent accounting even more vital.

The site says the two biggest regulatory developments that could affect cannabis lending in 2025 are the aforementioned rescheduling hearing and the Farm Bill revaluation. The Farm Bill, to refresh your memory, federally legalized hemp by removing it from the Controlled Substances Act. The bill was extended until September 2025.

With September just a few short months away, many in the industry are holding their breath. If hemp-based consumable cannabinoid products are prohibited, the effect on the cannabis industry would be catastrophic. Balance sheets could take a hit as cannabis businesses would be forced to record the value of affected inventory. Financial statements would then be impacted, and loan covenant violations could be triggered. Accounting systems and internal controls would also have to be updated to reflect new federal definitions.

Not to mention our old friend 280E. If the Farm Bill is reevaluated and hemp-based consumable cannabinoid products are banned and hemp is redefined, more businesses would fall under the scrutiny of 280E. This would drastically change these businesses’ accounting and tax planning practices, as 280E is complex and multifaceted.

However, the law firm Shipman & Goodwin urges caution. Despite a recent spending bill being approved by the full Appropriations Committee on June 23, 2025, Shipman & Goodwin argues that the bill is unlikely to pass in its current form due to partisan discrepancies. However, they do warn that the current Congress shows a predilection for eliminating the hemp loophole.

Conclusion

Cannabis accounting updates may sound like something you’d read if you were having trouble sleeping. Unfortunately, if you are in the cannabis industry, this is actually the type of reading that would keep you up at night. While some in the industry have a cheery outlook, citing Trump’s previous statements on cannabis, the recently departed head of the DEA showed outdated and deeply flawed opinions on cannabis. Further, while there is momentum for changing cannabis to a Schedule III substance, there is also momentum for gutting the loophole that removed hemp from the strictures of the Controlled Substances Act. But, like the story of Pandora’s box, it’s important to remember that hope remains. Fintech solutions are being developed that aid compliance — a major facet of accounting — and SAFER could help make lending easier for cannabis businesses.

Unfortunately, as much as there is still hope, there is also time — time to wait and see how things shake out.