Record keeping is important to staying in compliance and running a successful cannabis business. In the states where adult use and medical cannabis are legal, record keeping is among the most crucial hurdles to pass. Unfortunately, it’s probably the most important aspects to keep up with within this fledgling, highly-regulated industry.
Within the last two decades, cannabis businesses operated without a paper trail. They knew that this less records they had, the less likely the DEA would see them. Then when cannabis was legalized, compliance and regulations created a tsunami on the whole industry, causing chaos, panic, as well as casualties at the beginning of the video game.
Efficient record keeping might be all of that stands between your business’s success or failure. It’s also vital to recognize that attaining state permits is not the final. Keeping in compliance is an integral part of retaining your license.
Audits by state authorities also allow it to be necessary to keep your paperwork in order. As this market is even more regulated than the others, audits may be particularly tricky. There are several things you can do to help keep your business compliant making the audit process easier on yourself as well as the authorities conducting them.
Documentation – Store and organize all cash transactions. This can be key because cash is the primary kind of payment. Cannabis-related businesses aren’t able to take credits and deductions for sales they make of items produced from cannabiscultivationconsulting.com. They are able to however, deduct some costs for goods sold as they relate to other legal parts of their business.
Constantly having all records showing your compliance is important to never get caught unprepared by auditors. This includes vendor payments, sales, as well as employee salaries. Additionally, the internal revenue service mandates that payments over $ten thousand are reported.
At this time in the game, ignorance isn’t an excuse. The six-month grace in California is currently 0ver, and corporations has to be fully transitioned to get compliant. These regulations require work, however, if you wish to operate a successful business, you must know every in and out of the rules.
Using the cannabis industry’s strict regulatory environment, keeping accurate, detailed records has never been more essential. But besides just keeping your state’s regulators happy, these records also benefit your business.
Take, for example, the pesticide controversy that rocked Colorado in 2015. Even though the problem was complicated-their state had two different banned pesticide lists-one cultivator’s pesticide records became central for the controversy.
Within this court case, representatives in the business said they lost their pesticide records when coffee was spilled on the log book. Then someone mistakenly threw away the log book. With no record which pesticides were utilized and in what amounts and how frequently they were used, the judge were required to base his decision on the worst assumption: This business was hiding something. In the long run, the judge ruled from the business and in support of state regulators.
You need records – Everyone doing work in grow rooms must realize what’s being catalogued and why. That also includes lighting schedules, feeding schedules and products, pesticide use, etc. In other words, log everything.
But don’t just remember that “X” pesticide was utilized at “Y” time of day. Note the total amount, how much time the sprays were, whenever they started and when they ended, etc.
If you’re after the rules, you’ve got nothing to hide. In the event you mistakenly break the guidelines, having a log of everything you’ve done will give regulators a better concept of the best way to tackle any problems. The ylwfxt information they have, the simpler their jobs will be and the happier they’ll be.
And make sure that your employees date, time-stamp and sign off on everything. It’s just like essential to know who logged within the information as it is to know what that information is.
You require backups – It’s good to get records in writing, but you should also have copies. The right place to keep them is online. Storing records over a hard drive is a wonderful idea, nevertheless the disk could be destroyed or tampered with. So also consider storing the records on the cloud. There’s no true physical location, so there’s no chance to damage your data.
Record keeping can be quite a time-consuming task, too. It’s best to backup everything over a weekly basis, at a minimum. Making frequent backups not just updates your records in a timely fashion, it does so in a way where that details are still fresh inside your employees’ minds.