Cannabis businesses have long operated on high hopes and even higher tax bills.
Some relief may be coming as cannabis rescheduling eases the burden of Section 280E, a federal tax provision that bars cannabis operators from deducting ordinary business expenses.
Andrew Hunzicker, founder and CEO of the national cannabis accounting training program DOPE CFO, expects it to give the industry’s accountants plenty to do.
In a recent interview with CFO Upside, Hunzicker detailed how his training business grew in 2026, detailing how DOPE CFO is now drawing interest from experienced accountants who have been laid off and others who have become worried about their job security as firms of all sizes turn to overseas labor and AI.
Meanwhile, cannabis operators are navigating changes he believes could improve profitability and increase demand for such specialized financial expertise.
A New Leaf
Hunzicker said he speaks with roughly 10 to 15 accountants a week and is increasingly hearing from experienced professionals who have lost their jobs or worry they could be next. Some have major accounting firm experience and lengthy resumes that have done little to ease a difficult job search.
“It’s just a rugged time for public accounting, and I think it’s only going to get worse with AI,” he said.
Hunzicker said even accountants with decades of experience and Big Four backgrounds are struggling to find work. “Even if they could land a job, it’s at a huge pay cut,” he said.
“Private equity on the other side is gobbling up all kinds of firms and rolling them up, and what does private equity do? They say ‘How can we cut costs?’” he continued. “You move the work overseas and into AI.”
These cuts are generating interest in DOPE CFO, although Hunzicker is running into a challenge: Accountants who have already been laid off can struggle to afford the training, currently advertised at just under $5,000 after promotions.
Still, he noted the education business is growing. “We had our best year in the last three,” he said.
Higher Margins
Hunzicker’s optimism for accounting work in cannabis centers partly on the financial implications of moving medical marijuana to Schedule III and the resulting relief from that buzzkill, Section 280E.
He says the combined tax burden on medical cannabis businesses could fall substantially as operators gain access to deductions previously unavailable to them. For some companies, he estimates, the difference could amount to hundreds of thousands of dollars or more.
His hypothetical example: A dispensary that previously broke even could generate $1 million in net income after its tax bill falls.
“That’s life-changing kind of money for a small business owner and investor,” he said.
He expects stronger profitability to attract additional capital, a welcome development for cannabis operators that many lenders and financing companies still refuse to serve. The barriers extend beyond lending to technology, with some ERP providers and finance and accounting SaaS vendors also declining to work with cannabis businesses.
Investors have already backed the industry despite its constraints, Hunzicker noted, and stronger cash flow gives them another reason to look. He said he is already seeing more capital enter the industry in 2026 and expects that activity to increase as the regulatory picture develops.
“Of course, investors and lenders are going to be diving in because [the industry’s profitability] is just so much better than before,” Hunzicker said.
Tax relief, on top of helping cannabis operators in both cultivation and retail, also changes the work awaiting the accountants for both. Hunzicker argues that a business gaining access to more deductions and credits will need help evaluating those opportunities.
“Now that they do get all the deductions and credits, a tax return might go from 20 pages to 200,” he said.
That is why he expects DOPE CFO’s existing training to remain relevant, as detailed cost accounting still matters. So does helping operators understand their performance and prepare to raise capital. When asked what the program would teach as cannabis rules change, he offered a familiar syllabus.
“Same exact thing we teach them now because it’s not going to change that much,” he said. “It’s actually more complicated.”
Hunzicker’s outlook extends beyond the benefits of 2026’s medical marijuana rescheduling. He believes 2027 could bring something close to full legalization, with the potential to accelerate demand for both DOPE CFO programs and accounting talent that specializes in cannabis finance.
Hunzicker said he is also watching the midterms ahead of tighter federal hemp restrictions taking effect Dec. 11. The changes will bring many hemp-derived THC seltzers and gummies under federal marijuana controls by stripping hemp status from finished products containing more than 0.4 milligrams per container of total THC and other cannabinoids with similar effects.
That threatens a market that has reached consumers outside state-licensed marijuana dispensaries, including in states that restrict recreational marijuana. Hunzicker pointed to Texas: “You can go buy THC in a gas station in Denton, Texas today,” he said. He believes a Democratic takeover of the House could create an opening for broader cannabis and hemp reform.
Smoke ’Em if You’ve Got ’Em. Hunzicker expects consumer demand to endure and anticipates litigation if the December restrictions threaten that market. “I don’t think a $30 billion industry is going to go away,” he said.
