Cannabis Inventory Consulting

Controlling and managing inventory are important not only for cost accounting, but also for order tracking, process analysis, margin tracking and much more. Inventory control provides a snapshot of your company that allows you to evaluate the effectiveness of your business model. Cannabis inventory consulting is a good way to analyze existing controls and strengthen them in areas that need improvement.

What is involved in inventory management in the cannabis industry? Storing and tracking products, supervising purchases from your vendors and customers, determining how much product you make available for sale and how you display it are all aspects of cannabis store inventory control. Keep in mind that inventory management in the cannabis industry is strictly regulated.

Inventory control helps businesses increase profits and decrease losses due to expired and damaged products. The first step is to organize and enter product information into your software system. Be sure to include details about the product, including a description, its cost and quantity, the date it was received, etc. Consistency in data formatting among all products is vital.

Once your data is entered, how do you manage it? An inventory manager develops and maintains your inventory control procedures. Procedures typically include documentation of product receipt, monitoring stock levels, reordering and auditing via a physical count of inventory. Setting up metrics such as product performance, number of days of supply on hand, inventory turnover, sales and margins lets you know which items are selling and which are not.

Cannabis CPA helps our clients:

• Set up an effective inventory audit process and train employees in its use
• Determine the best inventory software and application programming interfaces (APIs); software should integrate with your other business programs
• Create a planning system that considers sales, discounts and seasonal factors that may result in product shortages
• Analyze cashflow issues that may prevent ordering or producing as much product as you want
• Be aware of vendor or weather conditions that may delay production or receipt of products
• Understand when a product is not selling well and should be discontinued
• Track plant growth and the harvesting of plants into products
• Trace the transport of plants within facilities or between locations
• Generate detailed reports that contain information useful to inventory and overall operations

Inventory controls and accurate record keeping are vital for all cannabis companies, including growers, distributors and dispensaries. We have the financial knowledge and industry experience to help you not only to strengthen controls, but also to learn how to store, track and analyze your inventory in ways that help your business grow and make money. And isn’t earning, keeping and investing the green stuff what it’s all about in this industry?