Enterprise resource planning software (ERP) has revolutionized the way companies in the global economy operate. Businesses in every industry have experienced the benefits of ERP, perhaps none more than the cannabis industry. While considered an industry in its infancy, cannabis has witnessed significant growth over the last year alone.
We’re looking back at the many challenges faced by cannabis organizations over the last year and we’re seeing how industry-specific software solutions rose to address the specific needs of the cannabis industry. Here we outline a few those challenges and how you can overcome them with cannabis ERP.
Yes, we know the cannabis industry was already complex, but with the continued growth of this industry comes increased complexities surrounding product options and ongoing legislation.
Affecting businesses at every stage of the cannabis supply chain, cannabis laws remain inconsistent from state to state. With more states in the U.S. loosening restrictions on legal marijuana use, sales remain high causing cannabis operators to take notice of customer service and operational efficiencies in addition to regulatory concerns.
Cannabis ERP is industry-specific software offering your cannabusiness new and innovative ways to reach potential customers while streamlining operations. Cannabis ERP helps you simplify every aspect of your company, from sales and customer service to finance and operations – all in one system.
Due to the hyper-regulated nature of the industry, cannabis cultivators, distributors, and dispensary businesses need to ensure rock-solid cannabis accounting practices lest they become a target for regulators and tax auditors. Many young cannabis companies who opened their doors while using off-the-shelf accounting technologies, such as Quickbooks, are finding cannabis accounting is anything but typical. Quickbooks and other basic accounting platforms lack specific Inventory management, cost accounting, and business insight tools.
As your company grows and matures, you will find those off-the-shelf technologies to be extremely limiting. Cannabis ERP is a fully integrated cannabis accounting package which meets tax code 280E, GAAP and Auditing Board compliance standards. This is cannabis accounting software which integrates seamlessly with inventory functions including purchase orders, invoices, cash management, and more.
Traditional on-premise cannabis solutions require significant upfront costs and IT infrastructure for ongoing maintenance. These systems often lack access to updated business practices and security offered by the cloud. That’s a big deal in this industry, a very big deal. On-prem systems often lack features and functions which make it difficult to scale with your cannabusiness.
The primary drivers for cannabis operators to seek cloud accounting lie in its security, redundancy, and ability to quickly recover from disasters. Cloud-based enterprise resource planning offers flexibility, scalability and is always up-to-date. With no hardware to maintain and pay-as-you-go subscription models, you get cost-effective automated reporting tools accessible virtually anywhere, anytime.
As cannabis legalization becomes more widespread, each jurisdiction develops its own guidelines surrounding cannabis, from seed to sale. Unfortunately, this often creates confusion and leaves cannabis compliance open to interpretations. Without the systems in place to track and document multiple aspects of the cannabis industry, operators risk considerable fines for non-compliance.
Cannabis compliance requires an ERP solution to provide automation and data collection tools to monitor, track, and report any information sought by regulators. With detailed information housed in a centralized database, cannabis operators get real-time visibility and integrated reporting to meet compliance initiatives.
To learn more about modern ERP for your cannabusiness contact one of our experts!