Well into 2019, the cannabis industry is continuing its evolution into a legitimized commercial enterprise which is keeping cannabusiness owners on their toes. As more cannabis entrepreneurs enter the market, they’re offering their customers and patients new and innovative ways to consume their product. Amid the cannabis industry’s whirlwind growth, new regulatory requirements and compliance issues come into play and cannabis operators are looking for ways to gain a competitive edge.
Choosing the right enterprise resource planning (ERP) system builds a foundation for that edge and in achieving your expansion goals. The process leaves no room for guesswork, so we’ve compiled a dedicated toolkit to guide you. With this toolkit, you can begin your research and selection of the best seed-to-sale ERP software for your cannabusiness. Whether you intend to expand your operations through organic growth, investor funding or by merging with other cannabis operations, cannabis ERP includes built-in accounting features to help you scale. Bringing us to your first tooltip regarding growth strategies and and accounting practices:
Next, you know your competition is enjoying the same explosive growth so you want to make sure you have the business advantage, right? Whether you’re streamlining operations or reaping the benefits of a real-time, cloud-accessible accounting solution, innovative cannabis entrepreneurs know purpose-built technology is what they need to keep them ahead of the competition.
Let’s pause for a moment for clarification. Before we continue bringing you the tools for choosing the best seed-to-sale ERP software, it’s important to recognize the differences in traditional seed-to-sale software and modern seed-to-sale ERP software. While the terms are often used interchangeably, they’re not necessarily the same technologies offering the same solutions. Ironically, in an industry running a race to legitimacy and standardization, the cannabis solutions paving the path are running a separate but parallel race to innovation. Don’t get confused in the labeling of the two very useful but different systems.
Traditional seed-to-sale software solutions do a great job of tracking your cannabis product from procurement of seeds, through their growth life cycle and on to the sale of product to your customer. While yesterday’s seed-to-sale software has thus far adequately addressed traceability for state regulatory compliance and security concerns, it lacks specific cannabis accounting and inventory cost controls, which is an important distinction. These basic compliance-focused systems also fall short in their ability to foster communication between departments the way modern seed-to-sale ERP does.
True seed-to-sale enterprise software tracks production and inventory costs associated with raw materials and finished goods. By tracking allocated costs, companies can more effectively run their businesses and make decisions based on real-time, up-to-date information. Cannabis ERP also facilitates the communication and collaboration within your departments, so it’s extremely important you know the difference before selecting your next cannabis software system. We’ve uncovered them for you with our next tooltip:
So let’s recap: Your cannabis operation is expanding and you’ve uncovered ways to gain competitive advantages through the available technologies. We’ve illustrated for you the difference between seed-to-sale software and modern cannabis ERP. As you continue your research into all the enhancements technology solutions available to help grow your cannabusiness, one looming question begins to rise to the surface – are you even ready for what cannabis ERP brings to your business?
There are a number of indications which might suggest your cannabusiness is ready for next-generation cannabis technology, but the inefficiencies in your current business processes will likely offer the first clues. From an efficiency and technology perspective, you know you’re ready for ERP but what about from a people perspective? Find out what we mean with this next tooltip.
Once you’ve determined your organization’s people and process readiness for cannabis ERP your next step is performing a thorough software evaluation. Undertaking a business transformation of this magnitude requires careful consideration of many company-wide variables including, once again, people. Do you have management buy-in? Have you calculated the labor resources needed for the effort? We’ve got you covered with this and more with our next tooltip.
During your cannabis ERP software evaluation, inevitably you’ll need to determine your ERP system requirements. Based on your operation’s current and anticipated future state, this is where you determine weaknesses in your existing processes while outlining opportunities to improve. This process is about simple questions with complex answers: Where is your business headed? What are your plans for growth? By clearly defining your specific business requirements and how your organization will directly benefit from addressing them, you save yourself considerable time and headache with features you don’t need.
Using our “Choosing the Best Cannabis ERP” toolkit, you’ve been able to make a business case for cannabis ERP and you’ve positioned your cannabusiness for the business transformation it entails. You’ve been educated about the differences that the solutions offer and how they’ll help win over the competition today and going forward. Now that you’ve thoroughly and successfully completed your software evaluation, you are prepared for cannabis ERP, you’re ready for a cannabis ERP vendor with industry expertise, innovative solutions, and dedicated support.
Contact us at e2b to learn more about Sage Intacct. There’s a Reason Sage Intacct is the AICPA’s Preferred Provider of Financial Applications.