Documentation is essential to remaining in compliance and operating a successful cannabis business. In the states where adult use and medical cannabis are legal, documentation is probably the most important hurdles to pass. Unfortunately, it’s just about the most important aspects to keep up with in this particular fledgling, highly-regulated industry.
Within the last two decades, cannabis businesses operated without a paper trail. They knew that the less records that they had, the more unlikely the DEA would locate them. When cannabis was legalized, compliance and regulations developed a tsunami over the whole industry, causing chaos, panic, and also casualties early in this game.
Efficient record keeping might be all of that stands in between your business’s success or failure. It’s also imperative to recognize that attaining state permits is not really the final. Keeping in compliance is an integral part of retaining your license.
Audits by state authorities also make it necessary to help keep your paperwork so as. As this market is much more regulated as opposed to others, audits could 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 as well as the authorities conducting them.
Documentation – Store and organize all cash transactions. This really is key because money is the main form of payment. Cannabis-related businesses aren’t allowed to take credits and deductions for sales that they make of items produced from cannabiscultivationconsulting.com. They are able to however, deduct some costs for goods sold since they connect with other legal parts of their business.
Constantly having all records showing your compliance is important to never get caught unprepared by auditors. This can include vendor payments, sales, as well as employee salaries. Additionally, the internal revenue service requires that payments over $ten thousand are reported.
At this point within the game, ignorance isn’t an excuse. The six-month grace in California has become 0ver, and firms must be fully transitioned to become compliant. These regulations require hard work, however, in order to run a successful business, you have to know every inside and out in the rules.
Using the cannabis industry’s strict regulatory environment, keeping accurate, detailed records has never been more important. But besides just keeping your state’s regulators happy, these records also benefit your small business.
Take, for instance, 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.
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. Without having a record which pesticides were utilized and in what amounts and how frequently they were used, the judge had to base his decision on the worst assumption: This business was hiding something. In the end, the judge ruled up against the business and in favor of state regulators.
You will need records – Everyone doing work in grow rooms must realize what’s being catalogued and why. That includes lighting schedules, feeding schedules and merchandise, pesticide use, etc. Put simply, log everything.
But don’t just be aware that “X” pesticide was used at “Y” time. Note the total amount, how long the sprays were, when they started and once they ended, and so on.
If you’re after the rules, you’ve got nothing to hide. Should you mistakenly break the guidelines, possessing a log of everything you’ve done will provide regulators a better notion of how to tackle any problems. The ylwfxt information they may have, the better their jobs will be and also the happier they’ll be.
And ensure that your employees date, time-stamp and sign off on everything. It’s just like vital that you know who logged inside the information as it is to understand what that information is.
You need backups – It’s good to possess records in writing, but you must also have copies. The best place to ensure they are is online. Storing records on the hard disk is an excellent 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 absolutely no way to damage your computer data.
Documentation could be a time-consuming task, too. It’s best to backup 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 details are still fresh in your employees’ minds.