accounting firm seattle
Picture hiring a contractor who says they’ve “done plenty of kitchens,” then finding out the last three were bathrooms. That’s roughly how many owners hire a cannabis cpa. The pitch sounds right, the price looks fair, you sign, and six months later you learn the firm has never handled inventory costing for a business like yours.
A signed engagement is the hardest point to back out of, so do your homework before it. Here’s how we’d check a firm, from first call to final signature.
Why the engagement letter deserves your attention
Most owners skim the engagement letter, or skip it, because the conversation felt good. That’s backwards. The letter is the only place where promises turn into obligations. It says what the firm will do, what it won’t, and what happens when something goes wrong.
Cannabis makes this more pressing. Federal tax rules shifted in 2026, and the Department of Justice placed marijuana covered by a state medical license in Schedule III in April. Adult-use cannabis remains in Schedule I under current law, so Section 280E still applies there. A firm’s scope has to say how it will handle that split for your license type, not leave it as a vague promise to “stay current.”
Six steps to evaluate the firm
1. Verify credentials and the actual people
Ask who will sign your return and who will work on your books day to day. These are often different people. A CPA holds a state license, an enrolled agent holds an IRS credential, and bookkeepers usually hold neither. All can be good. You need to know which one you’re paying for.
The two-minute license check
Every state board of accountancy runs an online license lookup. Ask the firm for the license number of whoever will sign your return, then check it yourself. Also remember that the IRS requires paid preparers to sign returns and include their preparer tax identification number. Any cannabis cpa who dodges that is telling you something.
2. Ask for proof of cannabis work
“We have cannabis clients” means almost nothing. Ask for the count, the license types, and how long clients have stayed. A firm serving dispensaries may not know cultivation costs. A firm that has handled only one distributor may not know retail.
Ask for a sample deliverable, with names removed. A monthly financial package, an inventory reconciliation, a tax workpaper. If they can’t show anything, their process probably isn’t written down.
What to ask a reference
- Did the firm explain 280E in plain language?
- How quickly do they answer when something breaks?
- Did you ever get a surprise bill?
- What would you change about working with them?
The last question gets the most honest answers.
3. Read the scope line by line
Make the firm put these in writing:
- Which services are included: bookkeeping, monthly close, tax planning, return preparation, payroll
- Which are billed separately: cleanup of old books, amended returns, audit support
- How often you’ll receive financial statements, and by what day each month
- What the firm needs from you, and by when
Watch for gaps. “Tax planning” with no meeting schedule is a sentence, not a service. Ask how many planning sessions you get per year and what they cover.
4. Probe the process
Ask how they close your books each month. A decent answer names steps: bank reconciliation, inventory reconciliation against your track-and-trace data, review by a second person, then delivery. A bad answer is “we handle it.”
Ask about payment approvals too. Our view, and some firms will disagree: keep final approval of payments in your own hands, even if your accountant sets up the process. One person who enters bills, approves payments, and reconciles the bank account is a risk, however honest they are.
5. Ask about data security and file ownership
Your books hold bank details, payroll data, and license information. Ask how the firm stores files, who can access them, and what happens if an employee leaves. Then ask the exit question: when you end the engagement, how do you get your records back, in what format, and how fast?
Nobody enjoys this conversation at the start of a relationship. It’s far less awkward now than after a dispute.
6. Price the work and plan the exit
Get fees in writing, per service. For reference, our monthly engagement for bookkeeping, accounting, and fractional CFO support starts at $550 a month, tax preparation starts at $125 an hour, and CPA work starts at $250 an hour. Your volume and the state of your books move the final number. Searching accounting firm seattle pricing will show how many firms hide theirs, so treat openness as a good sign.
Then check the term and the exit. How long does the contract run? How much notice do you owe to leave? Shorter terms cost the firm some security and cost you very little. A cannabis cpa who is confident in their work won’t mind that.
Run a trial before the long contract
You wouldn’t buy a truck without driving it. Ask for a short paid project first: clean up one quarter, or prepare a single monthly package, before committing to a year. You’ll see their speed, their questions, and their accuracy on your actual numbers.
Our free analysis works as a first step. It takes under an hour, we look for your key issues, and we sketch a roadmap with no obligation. We’re a boutique firm based in Seattle that serves clients nationwide, so remote work is routine for us. Does an accounting firm seattle owners can walk into matter for you? For most books and returns, not much. For a walk-through of your inventory room, we still prefer being there, though we haven’t found a rule for exactly where that line falls.
Red flags that should end the conversation
- A flat quote before anyone asks your license type or state
- A promise of refunds from amended returns after the 2026 federal change. The rule doesn’t expressly say whether you can amend earlier returns to claim deductions 280E blocked, and how the IRS will treat them is unclear. Nobody can guarantee that money.
- Vague talk about “aggressive strategies” with nothing written down
- Slow replies during the sales process
- No stated response time at all. Ours is 24 hours.
One of these might be a bad week. Two or more is a pattern.
Conclusion
Put your top three candidates through the same short test: ask for a sample deliverable, a written scope, a fee breakdown, and the exit terms. Compare the answers side by side before you meet again. The cannabis cpa who gives you specifics and admits what’s still unsettled is the one worth signing.
FAQs
What should a cannabis accounting engagement letter include?
It should list services, exclusions, deliverable dates, fees per service, who does the work, the contract term, notice to leave, and how you get your records back.
How do I know if a firm really understands Section 280E?
Ask how they handle your license type after the 2026 federal change and how they separate qualifying from non-qualifying activity. Specific, cautious answers are a good sign.
Can an accounting firm seattle owners hire handle clients in other states?
Often, yes. Confirm they hold the right licenses, have filed returns in your state, and can explain how they track local rules.
Is it normal to ask a firm for references?
Yes. Ask for two or three cannabis clients with a similar license type to yours, and ask each the same questions.
How long should I stay on a trial before committing?
One to three months is usually enough to judge speed, accuracy, and communication. Choose a project with clear start and end points.
