Record keeping is essential to staying in compliance and running a successful cannabis business. In the states where adult use and medical cannabis are legal, record keeping is one of the most important hurdles to pass. Unfortunately, it’s just about the most crucial sides to take care of in this fledgling, highly-regulated industry.
Within the last two decades, cannabis businesses operated without having a paper trail. They knew the less records that they had, the less likely the DEA would locate them. Then when cannabis was legalized, compliance and regulations made a tsunami on the whole industry, causing chaos, panic, and also casualties early in the video game.
Efficient documentation might be all of that stands between your business’s success or failure. It’s also imperative to understand that attaining state permits will not be the conclusion. Keeping in compliance is part of retaining your license.
Audits by state authorities also make it necessary to maintain your paperwork in order. Because this sector is much more regulated than others, audits may be particularly tricky. There are many things that can be done to help keep your business compliant to make the audit process easier on yourself and also the authorities conducting them.
Documentation – Store and organize all cash transactions. This can be key because cash is the key type of payment. Cannabis-related businesses aren’t permitted to take credits and deductions for sales they make of merchandise produced from cannabiscultivationconsulting.com. They can however, deduct some costs for goods sold as they relate to other legal areas of their business.
Constantly having all records showing your compliance is essential not to get caught unprepared by auditors. This can include vendor payments, sales, and also employee salaries. In addition, the internal revenue service necessitates that payments over $10,000 are reported.
At this stage inside the game, ignorance isn’t an excuse. The six-month grace in California has become 0ver, and firms has to be fully transitioned to be compliant. These regulations require work, however, if you want to manage a successful business, you have to know every out and in in the rules.
With all the cannabis industry’s strict regulatory environment, keeping accurate, detailed records has never been more valuable. But besides just keeping your state’s regulators happy, these records also benefit your company.
Take, for example, the pesticide controversy that rocked Colorado in 2015. Although the problem was complicated-the state had two different banned pesticide lists-one cultivator’s pesticide records became central towards the controversy.
In this court case, representatives of 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 in which pesticides were utilized and then in what amounts and exactly how frequently these people were used, the judge were required to base his decision on the worst assumption: This business was hiding something. Ultimately, the judge ruled from the business and in favor 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 merchandise, pesticide use, etc. Quite simply, log everything.
But don’t just note that “X” pesticide was applied at “Y” time of day. Note the amount, just how long the sprays were, when they started and once they ended, etc.
If you’re pursuing the rules, you’ve got nothing to hide. Should you mistakenly break the principles, using a log of everything you’ve done will give regulators a much better notion of how you can tackle any problems. The ylwfxt information they have, 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 as important to know who logged within the information since it is to understand what that details are.
You require backups – It’s good to have records in writing, but you should also have copies. A good place to ensure they are is online. Storing records over a hard drive is a wonderful idea, nevertheless 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 no chance to damage your information.
Documentation can be a time-consuming task, too. It’s better to back up 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.