More than ever, investment in the cannabis industry seems to be booming in North America.
In 36 states, marijuana is legal, and in 15 others, it’s legal for recreational use. With this development, large and small companies garner more cannabis manufacturing and sales services opportunities.
However, the industry’s huge potential and growing popularity don’t mean a shortage of challenges and restrictions, especially legal uncertainties.
The stigma on cannabis products is still in contention as different cities and states have various laws and regulations controlling this fast-emerging industry. Hence, every step from seed to sale requires compliance, which is the only avenue for any cannabis business to thrive. However, most operators are unsure of the right answers to several questions concerning the conflicting regulatory framework of the industry.
To cope with the complexities and protect your cannabis business from compliance issues while navigating the changing landscape, one solution owners and operators turn to is the Enterprise Resource Planning (ERP) System.
What is a Cannabis ERP System?
The Cannabis Enterprise Resource Planning system combines the critical features of the business into a common database.
It provides all the tools needed to meet all business requirements, manage finances, inventory, clients, and sales, and generate accurate reports from seed to final sale.
Cannabis owners and operators, whether manufacturers, growers, distributors, or retailers, are subject to strict laws from regulatory bodies. This often makes the business vulnerable to several risks of expensive fines or potentially losing their licenses. Regardless of the specialty, operators are integrating management technologies such as Cannabis Enterprise Resource Planning into their business process. With the heavy scrutiny and constantly changing regulations, the build of the ERP software is to align with compliance management and improve information flow, allowing you to focus on your customers.
Compliance Challenges a Cannabis ERP System Solves
Getting a business license for cannabis production or sales is challenging, but it doesn’t end there.
Every operation requires compliance, from record-keeping to quality tracing and tax reporting. Therefore, ERP software plays a prominent role in putting compliance at the center of daily operations, such that the business can thrive on real-time information and processes. Here are solutions the Cannabis ERP system brings to compliance challenges:
Financial and Accounting Functionality
Running a critical business requires accurate accounting and financials to yield profit.
Enterprises relying on entry-level accounting systems often find it challenging to have a foothold in employing the best practices and staying compliant with proper accounting principles and standards.
The cannabis ERP system help to streamline and manage every financial operation, including accounts receivable, accounts payable, and journal entries. The software helps manage sales orders, invoices, cash flow, and customer records. It provides asset tracking and keeps you on budget, so everything runs smoothly without issues of deleted transactions and no audit trails.
Traceability and Regulatory Compliance
Closely tracking and documenting inventories from seed to scale is one of the prominent regulatory compliance by states, and it must be accurate.
Proper documentation of the plant sources and every stage of their lifecycle, including the products and use of each plant, is necessary for compliance.
With each state having specific guidelines and certifications for cannabis, integrating the seed-to-scale ERP software with traceability functions helps to reduce errors and increase efficiency. It tracks, reports, and provides real-time information based on the required regulations. In addition to making management much easier, the software gives deeper insight into the business yield and the efficiency of your resources to encourage improvements.
With cannabis still illegal at the federal level, various states frequently modify regulations relating to cannabis operations, and task management is obligatory to avoid sanctioning.
A better ERP solution equips the business processes with task management features to ensure automated workflow, and business operations save time and money. It only makes sense for the enterprise resource planning to save labor costs and hours on inventory management, data entry, and directing compliance every week.
The Best Cannabis Software: SAP Business One
With the competition in the cannabis industry, many companies are increasing their search for the best ERP software to manage their operations and stay compliant.
It’s often possible to find some firms missing out on their benefits due to relying on ERP systems that are tough to adapt. Therefore, businesses must scale up their system and sustain growth.
SAP Business One is the largest and most successful seed-to-sale ERP software with proven records of automating and facilitating core business functions. It offers an efficient way to manage businesses as an integral whole and spans from inventory, sales, customer relationships, accounting, and purchasing to operations, human resources, and project management.
To manage the complexities of cannabis operations in real-time, Support One is an SAP Business One reseller that helps integrate the ERP system into your entire business and guide your learning processes through proper how-tos and training. From cultivating to distribution and manufacturing, several cannabis operators choose this ERP system for its ability to provide small to mid-market firms the insights and synergies to stand out while remaining compliant.
Other Popular Cannabis ERP software
SAP Business One is the best, but multiple cannabis ERP software options on the market also provide solutions to the industry.
As a modular-based seed-to-sale software, 365 Cannabis meets all business operating areas. This product from the Microsoft Dynamics platform integrates and processes data from multiple departments, enabling companies to produce and track products faster.
Quantum leaf is another cannabis ERP software offering a cloud-based solution to grow data from any location rather than relying on multiple platforms and spreadsheets. The software aids in saving time and resources and allows cannabis businesses to reach their full potential sooner while maintaining regulatory compliance.
Trellis cannabis seed to scale software ensures your company remains compliant while managing business operations. It offers CRM and provides improved cultivation, manufacturing, purchasing, distribution, tracking, reporting, and more solutions.
Viridian Sciences is a single software that eliminates the need for several dedicated programs and helps manage your business from one place. Using the software saves your business time and money, especially during the complexities of the cannabis business. It offers a comparative advantage in the marketplace to companies that must run their business effectively and abide by regulatory compliance and safety.
SAP Business One by Support One
Regardless of your position in the cannabis industry, ensuring your company remains compliant while improving efficiency and profitability makes good business sense.
From seed to sale, Support One can modify SAP Business One based on your unique business need, and our system helps to transform your cannabis business and set you up for ultimate success.