Documentation is essential to staying in compliance and operating a successful cannabis business. In the states where adult use and medical cannabis are legal, documentation is one of the most significant hurdles to pass. Unfortunately, it’s just about the most crucial sides to keep up with within this fledgling, highly-regulated industry.
Over the past two decades, cannabis businesses operated with no paper trail. They knew that this less records that they had, the more unlikely the DEA would locate them. Then when cannabis was legalized, compliance and regulations made a tsunami on the whole industry, causing chaos, panic, and even casualties at the beginning of the video game.
Efficient documentation may be all that stands in between your business’s success or failure. It’s also vital to realize that attaining state permits is not the conclusion. Keeping in compliance is a part of retaining your license.
Audits by state authorities also ensure it is necessary to keep your paperwork to be able. Because this market is much more regulated than others, audits can be particularly tricky. There are numerous things you can do to help keep your business compliant to make the audit process easier on yourself as well as the authorities conducting them.
Record Keeping – Store and organize all cash transactions. This really is key because cash is the primary form of payment. Cannabis-related businesses aren’t able to take credits and deductions for sales they make of merchandise created from cannabis record keeping plan. They could however, deduct some costs for goods sold as they relate to other legal elements of their business.
Constantly having all records showing your compliance is vital not to get caught unprepared by auditors. This can include vendor payments, sales, as well as employee salaries. Additionally, the IRS necessitates that payments over $ten thousand are reported.
At this point within the game, ignorance isn’t an excuse. The six-month grace in California is currently 0ver, and companies should be fully transitioned to be compliant. These regulations require work, however, if you want to manage a successful business, you must understand every in and out from the rules.
With all the cannabis industry’s strict regulatory environment, keeping accurate, detailed records has never been more essential. But in addition to keeping your state’s regulators happy, these records also benefit your company.
Take, for example, the pesticide controversy that rocked Colorado in 2015. Even though the problem was complicated-the state had two different banned pesticide lists-one cultivator’s pesticide records became central towards the controversy.
In this particular court case, representatives from the business said they lost their pesticide records when coffee was spilled on the log book. Then someone mistakenly threw away the log book. Without a record in which pesticides were utilised and then in what amounts and just how frequently these were used, the judge had to base his decision on the worst assumption: This business was hiding something. In the end, the judge ruled against the business and in favor of state regulators.
You will need records – Everyone doing work in grow rooms must understand what’s being catalogued and why. That includes lighting schedules, feeding schedules and merchandise, pesticide use, etc. In other words, log everything.
But don’t just remember that “X” pesticide was utilized at “Y” time. Note the total amount, how long the sprays were, once they started and when they ended, and so forth.
If you’re following the rules, you’ve got nothing to hide. If you mistakenly break the guidelines, possessing a log of all things you’ve done will provide regulators an improved concept of the best way to tackle any problems. The ylwfxt information they have got, the better their jobs is going to be and the happier they’ll be.
And ensure that your employees date, time-stamp and sign off on everything. It’s just like important to know who logged inside the information as it is to know what that information is.
You need backups – It’s good to have records in writing, but you must also have copies. The right place to keep them is online. Storing records over a hard disk is a wonderful idea, but the disk can be destroyed or tampered with. So also consider storing the records on the cloud. There’s no true physical location, so there’s absolutely no way to damage your data.
Documentation could be a time-consuming task, too. It’s best to support everything on the weekly basis, at the minimum. Making frequent backups not just updates your records in a timely fashion, it will so in a way where that details are still fresh in your employees’ minds.