What type of bookkeeping systems are used in a cannabis business anyway?
If you’re running a cannabis business, it’s important to have an effective bookkeeping system in place. Having a well-maintained and organized accounting system will help you keep track of your income and expenses, as well as provide financial information that can be used to make decisions about the future of your business.
Keep reading to learn more about what type of bookkeeping systems are used in a cannabis business.
Essential Tools and Software for Day-to-Day Cannabis Operations
To ensure that your bookkeeping system is properly maintained, it’s important to have the right tools and software in place. The most popular accounting software used by cannabis businesses is discussed below.
Looking to learn more about bookkeeping? Make sure to give our article about retail store bookkeeping a quick read before you leave!
Actionable Data Tools
Actionable data tools like Gusto, PaymentEvolution, and other payroll software options are integrateable with your organization’s operations. These tools help to provide important information that can be used to make decisions, such as inventory management, cost analysis, and customer relationship management. Data tools can also be used to track and analyze customer feedback, sales trends, and financial performance.
However, it’s important to consider several disadvantages of using data tools. For example, the cost of using such tools can be expensive.
You will also need a lot of data to get useful insights. And let’s not forget, you’ll still need experienced professionals, such as accountants and data scientists, to analyze the data. Otherwise, your data may not be as actionable.
Cannabis-Friendly Bookkeeping and Accounting Software
Accounting software, such as QuickBooks and Xero, can help to streamline your financial operations. These platforms make it easy to enter transactions and create reports that can be used for tax purposes or other analyses.
Ultimately, this software will not replace bookkeepers and accountants. However, they can be used to complement these services.
Project Management and Communication Software
When running a cannabis business, it’s essential to have effective project management and communication software in place. This will help keep all of your employees on the same page. Popular project management and communication software include Asana, Monday.com, and Slack.
These tools can be used to track tasks, assign tasks to team members, and communicate in real time. They also provide a centralized platform that can be accessed by all of your team members so that everyone is on the same page.
Recommended Bookkeeping Systems
The following are some of the most popular bookkeeping systems for cannabis businesses:
Accounting Suite
Accounting Suite is an all-in-one platform that streamlines your accounting processes. It includes features such as invoicing, bill payment, budgeting, and financial reporting. This platform is easy to use and can be used to manage all of your finances from a single dashboard.
QuickBooks Online
QuickBooks is one of the most popular accounting software solutions on the market. It’s designed to be user-friendly, and it includes features such as invoicing, expense tracking, and payroll services.
FreshBooks
FreshBooks is another well-known accounting software solution that’s designed for small businesses. This software is known for its ease of use and cloud-based technology that makes it accessible from anywhere. It includes features such as invoicing, time tracking, and project management.
Xero Accounting
Xero is a cloud-based accounting software solution that simplifies the way you manage your finances. It includes features such as invoicing, bank connection, and payroll services. It also offers mobile apps that allow you to access your finances from anywhere.
Choosing the Right Bookkeeping System for Your Cannabis Business
When choosing a bookkeeping system for your cannabis business, it’s important to consider the features and tools that the system offers. It’s also crucial to make sure that you find a system that’s user-friendly and has the features you need to manage your finances.
Additionally, it’s ideal to consider the cost of the software and any additional fees associated with it. These features have the potential to ensure the software will work for your operation.
Closing on Bookkeeping Systems for Cannabis Businesses
Having the right bookkeeping system in place is essential for any cannabis business. It’s important to remember that having the right tools and software in place can help streamline your operations, provide actionable data, and keep everyone on the same page.
If you need professional help, feel free to reach out at any time. Northstar’s team of professional CPAs specializing in the cannabis space are ready to scale your operation with expert financial services.
