Have you invested in a cannabis point-of-sale (POS) system yet?
When it comes to security for your cannabis business, it’s not just about protecting your physical product from outsiders. You also need to stop yourself from inadvertently breaking state and federal rules.
Before the cannabis industry started taking off, compliance and quality issues were virtually non-existent. Lab testing wasn’t even required!
It’s a different story, today. Owners of legal cannabis businesses must be wary of the black market and also follow strict reporting requirements.
In addition to protecting your business from theft, black market sales, and run-ins with the law — all hyper-important concerns — a cannabis-specific point-of-sale and inventory management system allows you to more effectively scale your business.
Let’s explore why the investment is more than worth it.
Protection From Illegal Sales of Shrinkage
You want to avoid the seedier side of the cannabis business (pun totally intended). Proper inventory management systems can help you from unwittingly becoming involved in illegal sales.
Black market selling can result when there is external or internal theft by employees or others with unintended access who then sell your cannabis plants where people shouldn’t sell them.
Alongside a physical cannabis security system, you need workflows that track and trace each cannabis plant. A cannabis POS system does just that.
METRC, a system required in multiple states, does a great job of this using RFID tags and specialized cannabis software, which alerts you and state regulators about each event as your cannabis plants transition from seed to sale, whether that’s growth, flowering, harvested, drying trimming, curing, or packaging.
The POS system you use should make it easy to generate state-required reports that are compliant with stringent regulations, or better yet, completely integrated with the state reporting requirements.
Protecting Your Business’ Reputation
Even if the risk of illegal product movement seems low, inventory tracking is essential for keeping tabs on what would typically be considered scrap in a regular industry — but for you could mean potential ruin.
To a large extent, cannabis farming is tricky. A lot of things can happen — sometimes plants die or are disturbed by bugs, and they might even get mold on them if conditions aren’t quite right. Sometimes, it’s after the plants reach the lab that you discover quality issues that deem your harvest useless.
It’s crucial to track and report any losses no matter the cause to the government, so they’ll know you’re not selling on the black market.
Of course, it’s also essential to account for all of your income. Too much money without matching product sales looks suspicious, as does too little money paired with a lot of sales.
Cutting Costs Doesn’t Come Cheap
When it comes to your software, it’s tempting to go with a less expensive option. Older systems may feel simpler to navigate without as big of a learning curve as newer, more sophisticated software.
Unfortunately, this is one of those situations where cutting costs can be more expensive. If you fail to comply with stringent reporting requirements, miscalculate a loss, or fall victim to some other pitfall, you run the risk of a forced shut down overnight.
Ultimately, when you’re ready to grow your business, you’ll need a point-of-sale system designed for cannabis businesses, so instead of going through a time- and labor-intensive software conversion down the road, it’s better to start off on the right foot.
A Proper Cannabis POS Equals A More Scalable Business
Built-for-cannabis POS and inventory management systems put you in a better position to understand the viability of your business and scale efficiently. Basic tracking programs like Excel are easier to use but not feasible for real, profitable growth.
A POS system helps ensure product viability and profitability by tracking each ingredient and its respective costs. Most importantly, when you choose one that integrates with your state government’s reporting software, you’re better positioned to comply with cannabis regulations.
Avoiding hefty fees and practicing sound business practices all help improve the sustainability of your business. A cannabis POS system and higher-level accounting services give you the tools you need to succeed.
Growing Your Business Vs. Selling It For Profit
As a cannapreneur, you might not want to run a cannabusiness forever. Instead, your ultimate goal might be to build a business and sell it for a hefty profit.
Either way, scaling is in your best interest because it leads to more money in your pocket while helping more people.
Accurate Reports For Added Security
Professional cannabis POS systems are ideally well-rounded. They track your cannabis from seed to sale and produce top-notch reports for internal use and regulation adherence.
Reporting compliance is NOT an area to fall short, especially when you consider that cannabis businesses are already more likely to get audited. A single reporting error could mean you have to pay excessive fees to the state.
Converting meticulously tracked cannabis plants into detailed reports is much easier when using software designed to do the specific job. Better yet, it significantly reduces the risk of errors since you don’t have to manually track products twice — at their raw materials stage and in their end-user form.
Investing in a cannabis POS system that covers taxation and keeps you updated on public policies helps protect your business investment and puts you ahead of others who aren’t taking the same steps.
The Bottom Line: Invest In Profitable Systems And Services
Investing in a cannabis POS system should be a no-brainer because they protect you from theft, illegal sales, non-compliance issues, and reporting errors.
The right POS and inventory management system can boost your scalability, viability and ensure your business is profitable.
Don’t have the time to crunch numbers but still want profits galore? Book a free call today! We’ll show you how to use a cannabis POS system to scale your business, all while saving money with professional outsourced bookkeeping services so that your profit doesn’t go up in smoke.