Software Programs: Cannabis Companies Have Many Options

Date September 13, 2022
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HBK CPAs & Consultants

There are many off-the-shelf software programs available to track the activities of a cannabis business – and most cannabis companies will require more than one. For example, tracking inventory requires a seed-to-sale system, such as MJ Freeway or Biotrack while a retail business requires a point-of-sale software program to record sales transactions. And both will also need a dedicated accounting software.

Accounting Software

Accurate accounting allows owners and management to assess the profitability of their business. When choosing a software program, some things to consider are ease of use, customer support, cost, and available data storage.

As to customer support, consider whether the cost is included in the licensing fee or is an additional cost. Also find out the length of the period support is provided.

As to the cost of the program and/or licensing fees, most software is priced as a monthly fee based on the number of users who require access to the program. User companies are billed either a fixed fee for a certain number (or unlimited number) of users or charged per user.

When it comes to data storage, such as receipts and invoices, some programs allow for attachments to each transaction, while others offer a folder for storing program items.

Ideally, any software you use should be cannabis compliant. Four of the most common programs are:

  • QuickBooks/QuickBooks Online: Designed for small business owners without an accounting background. Probably the most commonly used option but not cannabis compliant.
  • Xero: An online accounting solution designed for accountants and bookkeepers with apps for invoicing, expense management, inventory management, project management, and bill payment. Xero includes a mobile app and supports unlimited users.
  • Sage Intacct (Intacct): A stand-alone accounting system that integrates with ERP and CRM software. Good for multi-state operators and multiple entities needing to consolidate.
  • Oracle NetSuite (NetSuite): Advertised as an all-in-one “software suite” including customer relationship management, enterprise resource planning, and accounting modules.

    • None of these programs provide an inventory management module that works well for tax- and GAAP-compliant cannabis companies.

    Seed-to-Sale Inventory Software

    Inventory is one of the most important things cannabis companies track. Knowing the steps from seed to the sale of each plant allows for reliable tracking and results in more useful and accurate financial statements. Many states require the use of seed-to-sale software to ensure accountability.

    Things to consider when selecting a seed-to-sale program include cost, ease of use, technical support, and compatibility with regulatory software and accounting software. There are numerous seed-to-sale software programs available, with more being introduced regularly, including:

    Cultivation and Processing:

    • Agrisoft
    • Biotrack THC*
    • Canix
    • Flouish
    • Growflow
    • LeafLogix (acquired by Dutchie in 2021)*
    • MJ Freeway
    • Nugistics
    • ProSoft XP (manufacturing only)
    • SAP Business One
    • SilverLeaf
    • StashStock
    • Traceweed
    • Trellis
    • Viridian Sciences

    Retail:

    • Agrisoft
    • Cova
    • Blaze
    • Flourish
    • Flowhub*
    • Growflow
    • IndicaOnline (also available for delivery)
    • Treez*
    • Viridian Sciences

    * Recommended by Melissa Diaz of Rebel Rock Accounting

    Payroll Software

    Many accounting software programs offer a payroll module at an additional charge; others do not. They vary in terms of cost, ease of use, ability to link with the accounting software and general ledger, human resource services available, leverage efficiencies of scale HCM capabilities, and recruiting and onboarding capabilities, including benefits management.

    Payroll programs:

    • Gusto*
    • Paychex*
    • Primepay
    • Wurk *
    • ADP (in the future)
    • Workday (in the future)

    * recommended by Melissa Diaz of Rebel Rock Accounting

    Document Management Software

    Document Management programs allow users to store documents on physical servers or in cloud-based platforms. Considerations include whether the documents can be automatically categorized or associated with each other, whether it is an external system with the ability to write or read the storage location, how easy it is to access the storage or get help, and finally, the established standards for repository structure and naming convention of retained documents.

    Document management solutions:

    • Dropbox
    • Google Drive
    • Hubdoc
    • ShareFile

    Accommodating your needs

    Cannabis companies have many software options, and each business will prefer a different software for different reasons. The best approach to securing the best fit for your business is to do your research and try a program before you buy. Make a list of the services you need and determine which software will meet the needs of your business. Some software providers offer a questionnaire you can use to determine if their product is a good match.

    Many companies welcome feedback and encourage users to submit ideas to improve their programs, while others remain reluctant to work with cannabis businesses. We are seeing some of those companies open to change and hope more will be willing to support the needs of cannabis businesses.

    If you have questions on Software Programs with Cannabis Companies, please contact the HBK Cannabis Solutions.

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