Cannabis industry operators fight an uphill battle when it comes to staying compliant with all state and jurisdictional regulations. Existing regulations mandate constant attention to remain within the law and the rapidly evolving nature of the cannabis industry is such that the laws governing it can shift with incredible speed. As a result, cannabis manufacturers, shippers, and vendors alike struggle with these important initiatives.
Cannabis Compliance and Traceability
The biggest compliance challenge for your cannabusiness arises with the traceability requirement of all of your cannabis products and production materials. This requires that you be able to track, trace, and monitor every seed, plant, and product through its entire product lifecycle.
In order to track batches from each plant seed to every package sold to a customer (seed-to-sale), each individual cannabis item that cycles through your operation needs to have a unique identification number as well as an associated lot or batch numbers. This includes your processed cannabis products, but also the plants and even the seeds used to grow those plants.
In addition to tracking all forms of cannabis in the business, one must also track and maintain compliant audit trails that record every individual that interacts with the cannabis at any stage.
However, with the amount of data tracking required for the production and sale of cannabis, many operators in the cannabis industry have recognized that they need specialized systems specifically designed for their process needs.
Cannabis Enterprise Resource Planning
The amount of information necessary to trace, record, and keep is extraordinary. Few industries outside cannabis require the kind of engaged monitoring that cannabis does.
However, cannabis enterprise resource planning (ERP) systems are designed from the ground up with cannabis in mind and offer features that inherently collect and maintain all of the information necessary for regulatory compliance.
ERP systems log every piece of data in order to keep a record of it. The upshot of this is that not only are ERP systems useful for tracking inventory but that they are also ideal for maintaining process and quality controls. For instance, different strains of cannabis can require different steps in the growing process, and ERP systems are designed to maintain a record of every step that goes into manufacturing.
As such, cannabis ERP systems help monitor and keep track of the various different steps associated with growing and processing cannabis into saleable products, which helps maintain consistency within the product and the workflow required to produce it.
ERP systems were originally designed for manufacturers to look after their inventory and business processes data, compiling it all in a single location so that any necessary information is readily accessible by way of a single pipeline. ERP systems are designed from the ground up for integrating many different types of data and tracking inventory, and thus is an ideal solution for your cannabusiness.
Whether you operate as a cannabis cultivator or extractor, a manufacturer or dispensary, a cloud-based cannabis ERP and accounting solution like Sage Intacct is uniquely positioned to handle the traceability and compliance mandates in your industry.
Sage Intacct gives your cannabusiness the operational and compliance tools to meet the requirements of an ever-changing industry in one cannabis industry software solution.
Contact us to learn more about how a cloud-based cannabis ERP and accounting solution like Sage Intacct can improve your accounting processes.