Cannabis operators are challenged at every turn. Regulatory and tax compliance are essential to business continuity, but stringent requirements often come at a cost. Considering the limitations placed upon the industry by IRC 280E, which prevents cannabis businesses from deducting even the most basic business expenses at the federal level, margins are tight (a gross understatement). To ensure success in this challenging environment, operators must apply diligence with their accounting to stay compliant, minimize risk, and maximize profits.