5 Things You Need In A Cannabis Accounting Software

When you first started your cannabis business, finding a sophisticated cannabis accounting software was probably not very high on your to-do list. Compliance and simply maintaining the necessary data to keep the doors open was your top priority. You were most likely able to get by using a standard accounting solution like Quickbooks or perhaps even a simple spreadsheet.

As the industry matures and you look to grow along with it, you may find the cannabis accounting software you signed up with at the beginning to do the basics at a low cost is no longer robust enough to scale with your business. You need a system with functionality tailored to more enterprise-level cannabis accounting.

In this post, we will outline five things you should look for in cannabis accounting software to grow with. 

Onboarding

As is the case with any new software or service, proper onboarding is vital. If you are adding an accounting integration to your current seed-to-sale solution, you’ll need to know how to get started and what to expect with future releases moving forward.

Onboarding can vary based on the software you choose, what type of cannabis business you own, and whether you have previous experience with accounting software.

Here are a couple of specific things to look for:

  • Onboarding for a minimum of 30 days so that you have a chance to truly dig into your new solution. For users who are importing historical data from a previous system, you will want to allow anywhere from 60 days and more to get up and running.
  • The number of hours you’ll save when you move to the new solution. Research has shown that when companies move from their existing accounting software to a solution like Sage Intacct, they save an average of 500 hours of accounting time. That’s up to three months of hours saved because of things like reduced processing times, getting data analytics quicker, and even a shortened sales cycle.

Granular Tracking and Analytics, Down to the Seed

You should not only choose a solution that helps manage your money but one that provides financial tracking at a more granular level. Choose the cannabis accounting software that provides you with the most data. This way, during an audit, you’ll be able to see (and prove) exactly where your money is going.

Here are some features you’ll need:

  • Fully loaded inventory costs that show anything that goes towards growing and cultivating that final product. This means having the ability to track all costs – for labor, rent, utilities, when nutrients were applied, and job hours. Then applying all these costs based on an individual plant, a batch of plants, or an entire room.
  • Transparent and detailed audit trails that allow you to justify every expense. Various audit trails should include standard, advanced, and HIPPA-compliant levels. 
  • Visual dashboards to show things like product lines and sales information across product types. Also, accounts payable information including bill pay history, cash dashboards, controller dashboards, and more.
  • Role-based setup for your accounting software users so that you can control who does what — like bill pay, writing checks, payroll, etc.
  • Predictive business intelligence that provides insight into your entire financial landscape. You should be able to see trends across spending, products, revenue, and more.

Multilingual and Multicurrency Offerings

With an enterprise-level accounting solution, you are set up to grow from a multilingual and multicurrency perspective. Even if you’re only currently operating in the US or Canada, having access to multilingual representatives is invaluable. Furthermore, the software itself should be available in multiple languages. This is a good sign that the provider is thinking about cannabis from a global perspective and is well-versed in compliance across borders.

As you scale your business, it is important that your accounting solution can handle multiple currencies for international transactions. Even if this isn’t something that concerns you today, it is a feature that will benefit you in the future (especially as banking laws change).

Access to Credible Industry Experts

Many times, cannabis ERP technology providers, like MJ Platform, acquire companies or integrate with solutions that can make their offerings more comprehensive. This allows them to stick to what they know best—cannabis—while bringing in experts from other fields, like accounting. Leaders in cannabis technology with industry experience and a “cannabis industry first” approach are key.

Customizable to Fit Your Cannabis Business

The most important thing to look for a cannabis accounting software is that it is customizable to your unique needs. For instance, if you’re a cultivator, you do not need the same accounting functionality required for a manufacturer.

Furthermore, you may only have a few back office employees. But if your revenue is what’s scaling quickly, you will need to allow space for this rapid growth. Moving towards an enterprise-level accounting solution may be a step in the right direction. 

MJ Platform has certified API integration with tier-one ERP software providers, including SAP ECC, Sage Intacct, and Netsuite. The combination of MJ Platform and these key partnerships supply our clients with a range of sophisticated accounting solutions. We can help you streamline your business with end-to-end financial visibility, reporting, and analysis.

Want more information on our accounting partners? Request a demo today to learn more.