As your cannabis company grows, the processes that are currently handled either manually or with disparate systems become liabilities. Accuracy and efficiency in all areas of the business become crucial. Manually entering and reentering data can lead to errors and time delays. The solution is an integrated system in which all divisions in the company share the same database – a good cannabis ERP system.
3 Reasons to Integrate a Cannabis ERP System
In an ERP (Enterprise Resource Planning) system, all data is stored in a central repository or database.
Here are three main reasons why it’s a good idea for your cannabis company to integrate an ERP system.
Accurate accounting and financials are paramount in running a profitable business.
Entry-level accounting systems do not necessarily follow industry best practices and are not GAAP compliant. These systems may allow the deletion of transactions without an audit trail.
An ERP system utilizing cannabis industry best practices will prevent this.
A good cannabis ERP accounting system will help manage and streamline your financial operations.
The cannabis ERP system will automatically handle everyday tasks such as journal entries, accounts payable, and accounts receivable. A cannabis-specific ERP system will also provide asset tracking, help you manage cash flow, and provide budget controls.
Advanced accounting systems should easily accommodate multi-business and multi-state operations. And robust data retrieval will provide custom query and reporting capability.
- Accurate Accounting and Financials (GAAP)
- Track Costs from Seed to Sale
- Multi-State Operations (MSO)
- MRP and Forecasting
Regulatory Compliance – Traceability and Compliance
Regulatory Compliance is an essential part of the business, and it must be done accurately. An ERP system should easily be able to track and report all the necessary data the state regulatory system requires.
- Reduction of errors
- Increased efficiency
- Inventory and batch tracking
- Real-time reporting on any device
- Actionable information on sales, inventory, financials, and more
Integration into your local state’s track and trace system would be helpful, but not essential, as long as the system will easily generate a report providing the required information.
If this is a specific integration you are evaluating, keep in mind each state has very specific guidelines and certifications, especially when it comes to cannabis.
Be sure your current reporting points are all covered.
Increases the Value of Your Cannabis Business
Having an integrated ERP system in place can greatly increase the value of your business in the eyes of potential investors.
First and foremost, they’ll know your numbers are accurate and there is built-in efficiency in your processes.
- Industry Standard Best Practices
- Automated Processes
- Actionable Reporting
- Increased Profits
- Poised for Growth
- Company Leadership
- Product Strength and Differentiation
A company using an ERP system will stand a much better chance of checking these boxes. A fully implemented ERP system will demonstrate to potential investors that the leadership team is business-minded and forward-thinking.
The product production processes are well documented and efficiently accomplished.
A good cannabis ERP system will be scalable for increased growth and expansion into other states. And the company’s valuation is accurately measurable.
In an interview with Sherri Haskell, the Founder and CEO of Canna Angels, she states that they look at prospective company’s data, governance, technology systems they’ve integrated, and preparedness for due diligence.
“That gives us an idea as to how mature they are. We not only look at what the financials are year-to-date, but we question them on their projections”.
Cannabis ERP Software Provided by Support One
Regardless of whether you are positioning your cannabis company for investment or are more interested in improving your company’s efficiency and profitability, a cannabis ERP system makes good business sense.
Contact us to learn how to integrate your system.