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Avoid These 5 Compliance Pitfalls By Using Marijuana Tracking Software

Avoid These 5 Compliance Pitfalls by Using Marijuana Tracking Software

Marijuana tracking software is your first line of defense in keeping your cannabis dispensary compliant

It’s no secret that the cannabis industry is heavily regulated by state-mandated reporting requirements. As a result, dispensary owners must collect and manage enormous amounts of data, producing many security and compliance concerns. Failure to meet compliance standards not only results in loss of reputation – your dispensary business could be penalized, and you can lose your license.

Here are the top 5 compliance pitfalls your dispensary business faces that can be managed easily by marijuana tracking software.

1. State Reporting and METRC Integration

Depending on your state, cannabis dispensaries face big challenges when it comes  to reporting sales, expenses, and inventory data daily. A large majority of dispensaries that are shut down fail to report earnings to the state compliance system, but this pitfall can be avoided by using an automated marijuana tracking software system.

Most states, such as California, Michigan, and Colorado, use METRC to help them regulate cannabis businesses. A well-designed marijuana tracking software will integrate directly with your state’s reporting system, thereby eliminating the chance of human error.

This integration is invaluable to your marijuana dispensary, as it will alleviate any compliance concerns and allow your business to operate more efficiently.

2. Seed-to-Sale Inventory Tracking

Marijuana dispensary owners must follow strict seed-to-sale tracking requirements which dictate that every plant, product, and person associated with the production and sale of marijuana is documented. Stages of the cannabis production process that need to be tracked include:

  • Cultivation
  • Harvest
  • Testing
  • Transportation
  • Point-of-Sale

Marijuana tracking software and effective seed-to-sale tracking ensures transparency through the supply chain and keeps consumers safe. As a bonus, you’ll have detailed inventory reporting at your fingertips when your business is audited, helping you to avoid compliance violations.

3. Patient and Age Verification

Your marijuana tracking software must be able to cross-check and verify that your customers are eligible to purchase cannabis products. For medical dispensaries, this means making sure products are only sold to qualifying patients or their registered caregivers. For those who retail recreational cannabis, software provides the ability to easily verify your customers’ ages before conducting sales.

The verification feature not only speeds up the check-in process and reduces transaction times, it also protects you from a potential compliance infraction. Additionally, because dispensaries are hot spots for personally identifiable information, managing this data in a cloud-based software reduces the risk of your customers’ information being compromised.

4. Purchase Limits

Compliance regulations specify how much recreational or medical marijuana a customer can purchase in a single day. Medical marijuana patients’ limits are usually significantly higher. Selling more than the legal limit, whether intentional or an honest mistake, carries major consequences for dispensaries.

Calculating these limits can cause confusion at checkout if your business is using an inferior POS system. Advanced marijuana tracking software keeps track of these limits during every transaction and will alert your staff when purchase limits are met or exceeded, ensuring that you’re never selling more than the compliant amount.

5. Compliant Labeling

Detailed labeling is essential to staying compliant, and regulations can vary state-to-state. Some states even mandate font size and style! Compliant label requirements can include:

  • Company name
  • Net weight
  • Required warnings
  • Potential allergens
  • THC/CBD levels

Fortunately, marijuana tracking software allows you to input label information and create templates, and an integrated label printer will provide the compliant label as soon as the product is added to the consumer’s cart.

Where are your compliance gaps?

The market is inundated with new software, and every dispensary is looking to make sure their systems fit their business perfectly. If you have concerns that your software is holding you back, you’re not alone. Let us help you clear those roadblocks and set your business up for the long-term.



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