Documentation is essential to remaining in compliance and running a successful cannabis business. Within the states where adult use and medical cannabis are legal, documentation is one of the most important hurdles to pass. Unfortunately, it’s one of the most main reasons to keep up with in this particular fledgling, highly-regulated industry.
In the last two decades, cannabis businesses operated without a paper trail. They knew the less records that they had, the more unlikely the DEA would find them. Then when cannabis was legalized, compliance and regulations made a tsunami over the whole industry, causing chaos, panic, and even casualties at the beginning of the game.
Efficient record keeping could be all that stands in between your business’s success or failure. It’s also vital to understand that attaining state permits is not really the conclusion. Keeping in compliance is an integral part of retaining your license.
Audits by state authorities also make it necessary to maintain your paperwork to be able. Since this sector is even more regulated than others, audits could be particularly tricky. There are several things you can do to keep your business compliant making the audit process easier on yourself and the authorities conducting them.
Documentation – Store and organize all cash transactions. This really is key because cash is the key kind of payment. Cannabis-related businesses aren’t permitted to take credits and deductions for sales they make of merchandise created from cannabis record keeping plan. They are able to however, deduct some costs for goods sold since they relate to other legal parts of their business.
Constantly having all records showing your compliance is essential to not get caught unprepared by auditors. This includes vendor payments, sales, and also employee salaries. Furthermore, the IRS necessitates that payments over $10,000 are reported.
At this stage within the game, ignorance isn’t an excuse. The six-month grace in California is currently 0ver, and firms must be fully transitioned to get compliant. These regulations require hard work, however, if you want to run a successful business, you must understand every out and in in 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 problem was complicated-the state had two different banned pesticide lists-one cultivator’s pesticide records became central for the controversy.
Within this 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. With no 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. Ultimately, the judge ruled from the business and in support of state regulators.
You need records – Everyone working in grow rooms must realize 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 note that “X” pesticide was used at “Y” time. Note the exact amount, how long the sprays were, once they started so when they ended, etc.
If you’re following the rules, you’ve got absolutely nothing to hide. In the event you mistakenly break the guidelines, using a log of all things you’ve done will give regulators a much better notion of the best way to tackle any problems. The ylwfxt information they have, the simpler their jobs is going to be as well as the happier they’ll be.
And ensure your employees date, time-stamp and sign off on everything. It’s just as important to know who logged inside the information because it is to understand what that information and facts are.
You require backups – It’s good to have records on paper, but you must also have copies. A good place to keep them is online. Storing records on the hard disk is a wonderful idea, however 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 way to damage your data.
Documentation could be a time-consuming task, too. It’s better to support everything over a weekly basis, at a minimum. Making frequent backups not merely updates your records in a timely fashion, it does so in a way where that information is still fresh in your employees’ minds.