The Cannabis Accounting Podcast

Ep. 32: How to Overcome Dispensary Accounting Challenges

01.20.2020 - By DOPE CFOPlay

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Accounting for dispensaries is unique for a number of reasons.

If done incorrectly, cannabis CEOs and investors may be putting themselves in a situation where they can be fined, or even lose their licensing.

Here are just a few of the challenges with retail cannabis inventory that we share on this episode:

Software not syncing and bad POS systems

Incorrect data in software

Using the wrong tax codes

Not doing cost accounting or correct non-Cannabis accounting

Not doing GAAP specifically for retail operations

No inventory policies/procedures of controls in place

No inventory counts and reconciliations

Not understanding the seed-to-sale process

Not understanding the different verticals

...and more!

The IRS is cracking down on retail cannabis businesses, so don’t get surprised during your next audit! Make sure that your accounting practices are in compliance.

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