01.20.2020 - By DOPE CFO
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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