Many cannabis companies in the U.S run as multi-state operators. However, each state has different rules for growing, packing, testing, and marketing cannabis products. Additionally, the laws and regulations governing cannabis companies are constantly changing, a challenge for MSO.
Consequently, multi-state operators cannot standardize their ingredients, methods, and practices, which results in organization-wide inefficiencies and a lack of visibility.
In this post, we look at the five challenges facing multi-state operators and how to overcome them using the Enterprise Resource Planning (ERP), built specifically for the cannabis industry. This will help MSO plan for the probable federalization of cannabis law.
420 Accounting Services Helps With Common Multi-State Operator Challenges
Multi-state operators, from manufacturers to distributors and sellers, have unique accounting needs. Therefore, it’s essential to work with a cannabis accountant who understands the cannabis industry.
Our company provides various services to help cannabis companies overcome multi-state operator challenges. Here’s a brief of our cannabis accounting services for MSO.
Multi-state operators must comply with the constantly shifting state rules and regulations. Cannabis businesses need ERP systems that integrate with various state regulatory systems to manage and ensure compliance. For instance, if a business site is set for state regulatory reporting, the ERP system captures and processes transactions in the background and sends them to the state regulatory reporting database.
For cross-border transactions, ERP systems enable MSO to;
- Maintain audit trails
- Perform recalls
- Segregate duties
- Trace all interactions throughout the production process
420 Accounting Services helps multi-state operators mitigate the challenges of the cannabis industry rules and regulations through proper cost accounting, timely submission of taxes, and timely renewal of your business licenses & permits.
Lack of standardization and visibility across business units is one of the main challenges for cannabis multi-state operators. Most multi-state cannabis companies rely on disconnected data from software systems operating independently.
An ERP solution enables MSOs to connect data, processes, and departments into a single system helping cannabis companies make better and faster decisions concerning their business.
We provide training and consulting services to MSOs to aid company-wide integration.
Product Quality and Consistency
Multi-state operators need a single solution to ensure quality and consistency across their operating entities. An ERP system provides visibility into the functioning of a business unit through standardized quality control measures.
MSO Industry uses ERP systems to recognize entities with more recalls or facilities producing more waste. This way, cannabis companies can channel all their efforts and investments into activities and facilities that yield more profits.
Multi-state operators should not rely on purchasing data and financials from state-specific business units. Instead, they should use an ERP system to consolidate and streamline business operations.
Also, cannabis can use ERP systems to institutionalize processes across businesses, eliminating the need for massive training and integration processes.
420 Accounting Services provides training and consultation to multi-state operators to ensure operational efficiency.
Maintaining accurate and organized data is difficult for MSOs that lack an integrated ERP solution. They miss significant trends in data because they have no complete visibility. As a result, making real-time business adjustments becomes daunting.
An ERP solution allows for end-to-end management of business operations. All data from different entities are collected and organized into a single system, providing complete visibility.
420 Accounting Services helps canna-businesses set up a perpetual data room or new accounting software (QBO, Xero) to help organize company data across all entities. We also help with onboarding and setting up data clean-up processes.
Find the Consultation You Need For Your Multi-State Canna-Business
Running a canna-business is not easy, especially in multiple states. Cannabis companies have to deal with each state’s different rules and regulations. However, an ERP solution can help solve the everyday challenges multi-state operators face in the cannabis industry. A single cannabis system solution ensures compliance, company-wide integration, product quality, consistency, and operational efficiency.
420 Accounting Services provides accounting, taxes, and financial services for cannabis companies in California. Contact us by filling out a form to access our cannabis accounting services.