It’s easy to see why businesses operating in the cannabis industry would have intricate inventory management needs, but there’s another business side to cannabis which many might not consider. The cannabis industry has complex accounting requirements that go hand-in-hand with their inventory and other business processes.
With cloud accounting software built specifically for cannabis companies, organizations within the cannabis supply chain finally have the advanced technologies to support their unique operational and accounting needs. Today’s growing cannabusinesses need to adapt in a rapidly changing environment and when they’re successful, it gets noticed. This often results in company leadership seeking investor funding or entertaining mergers and acquisitions talks. When companies operating in this space attempt to position themselves for growth, they need field-tested cloud accounting software to prove it.
Because of its explosive growth, the cannabis industry is attracting a lot of attention from investors. As growing a business through investment funding is an attractive strategy for expansion in any field, so it goes for cannabis entrepreneurs. What do cannabis investors want to know?
Investors want to see your financial performance so you need to know your numbers. Having cannabis accounting software in place to manage your entire company makes your business attractive to investors with easy to access data.
Investors also want to know their prospects have the systems in place to scale and generate ROI. You position your cannabis company well by proving the integrity of your end-to-end business processes. Through real-time information about the profitability of your organization, cannabis solutions help demonstrate best accounting and business practices as well as a commitment to meeting compliance standards.
When pitching to investors, does your current accounting solution show proof that your current assets are enough to cover current and short-term liabilities? Can you accurately illustrate to your revenue streams and top sellers? As you grow, your business gets more sophisticated. Old accounting software, off-the-shelf solutions and manual reports simply cannot deliver your organization’s entire financial picture the way modern cannabis cloud accounting software does.
Because all of your accounting data is now in the cloud, you can be confident your real-time data is safe, accurate, and all-inclusive. With detailed, documented and transparent accounting and financial reporting systems all in one place, cannabis companies are able to present the information potential investors need to fund your expansion.
Of equal consideration is the rate at which cannabusinesses are establishing themselves and expanding operations through merger and acquisition strategies. Preparing for M&A entails every bit of the effort that dealing with potential investors entails as outlined above – the major difference being M&A involves two cannabusinesses combining efforts, often resulting in multi-entity cannabis companies.
Today’s cannabis accounting software is well-suited for the common multi-entity cannabis company set-up. Often these businesses need separate entities for licensing or regulatory purposes so advanced accounting systems that offer multidimensional general ledger capable of handling multiple locations is important. These systems easily manage high volumes that come with multiple locations as well as the tracking production management and inventory planning and control.
Through deep analysis of your financial data, cannabis accounting solutions measure the effectiveness of your business processes to maximize performance and track your progress. When reports illustrate your organization’s commitment to growth can be easily and instantly generated, you’re far more attractive to would-be buyers.
When performing your cannabis accounting in the cloud, you no longer need to keep disparate systems and spreadsheets, nor do you need to generate manual reports. Cannabis accounting software allows you easy access to the real-time data needed for productive M&A talks with other cannabusinesses.
Whether you’re presenting your business to investors or preparing for M&A activity, cannabis accounting software helps you illustrate a financial control throughout your operation, giving investors an all-in-one view of your business and demonstrating your financial performance. It’s through advanced technologies like cloud accounting for companies operating in the cannabis supply chain that growing cannabis companies are able to confidently present their company to those outside entities.
To learn more about modern ERP for your cannabusiness contact one of our experts!