Documentation is important to remaining 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 crucial hurdles to pass. Unfortunately, it’s probably the most important aspects to keep up with in this fledgling, highly-regulated industry.
Over the past two decades, cannabis businesses operated with no paper trail. They knew that the less records they had, the less likely the DEA would see them. When cannabis was legalized, compliance and regulations made a tsunami within the whole industry, causing chaos, panic, as well as casualties early in the game.
Efficient record keeping may be all of that stands in between your business’s success or failure. It’s also important to recognize that attaining state permits will not be the end. Keeping in compliance is an integral part of retaining your license.
Audits by state authorities also make it necessary to keep your paperwork in order. As this industry is a lot more regulated than others, audits could be particularly tricky. There are numerous 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 is key because cash is the key type of payment. Cannabis-related businesses aren’t able to take credits and deductions for sales that they make of items created from cannabiscultivationconsulting.com. They could however, deduct some costs for goods sold since they relate with other legal elements of their business.
Constantly having all records showing your compliance is vital to not get caught unprepared by auditors. This consists of vendor payments, sales, as well as employee salaries. Furthermore, the internal revenue service mandates that payments over $ten thousand are reported.
At this time inside 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 work, however, in order to operate a successful business, you must understand every inside and out from the rules.
Using the cannabis industry’s strict regulatory environment, keeping accurate, detailed records has never been more important. But in addition to keeping your state’s regulators happy, these records also benefit your company.
Take, for instance, 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 for the controversy.
In this particular 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 of which pesticides were used as well as in what amounts and just 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 against the business and in support of state regulators.
You will need records – Everyone employed in grow rooms must realize what’s being catalogued and why. That also includes lighting schedules, feeding schedules and products, pesticide use, etc. Put simply, log everything.
But don’t just remember that “X” pesticide was applied at “Y” time of day. Note the amount, how long the sprays were, whenever they started and when they ended, and so on.
If you’re pursuing the rules, you’ve got absolutely nothing to hide. If you mistakenly break the principles, using a log of everything you’ve done will provide regulators a much better idea of how to tackle any problems. The ylwfxt information they have got, the better their jobs will be and also the happier they’ll be.
And ensure your employees date, time-stamp and sign off on everything. It’s equally as important to know who logged within the information as it is to know what that details are.
You will need backups – It’s good to possess records in writing, but you need to have copies. The best place to ensure they are is online. Storing records over a hard drive is an excellent 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 absolutely no way to damage your data.
Record keeping can be a time-consuming task, too. It’s advisable to support everything on the weekly basis, at a minimum. Making frequent backups not merely updates your records in a timely fashion, it will so in a way where that details are still fresh in your employees’ minds.