No software lasts forever. Eventually, cannabis companies outgrow their legacy seed-to-sale or accounting software and need more complex functionality to manage more complex business processes.
But deciding when to upgrade your accounting software to an all-in-one solution like an Enterprise Resource Planning (ERP) system is a big undertaking. It’s critical to understand what’s driving the need for a more robust solution.
Ideally, new software should help you take your business to the next level, and increase overall efficiency, productivity, growth and cost savings. But choosing the right time to upgrade and the right system to upgrade to can be tough.
Below, we look at some of the signs it’s time to replace your accounting software, why you should consider a cannabis-specific ERP solution and how to go about choosing the right system for your business.
Knowing When It’s Time to Upgrade
One of the many questions business leaders ask themselves when deciding to upgrade their accounting software is, “Why now?”. Here’s a few signs it might be time to replace your current solution:
1. Lack of Scalability
Traditional accounting solutions require extensive add-ons or manual workarounds to manage higher volumes of transactions, which can lead to higher costs and greater inefficiencies throughout the company.
2. Lack of Reporting Functionality
Software systems built specifically for accounting can pull accounting-specific reports, but that’s pretty much it. To make strategic business decisions, you need access to company-wide data and real-time reports on finance, scheduling, purchasing and sales.
3. Unreliable Data
When a business utilizes multiple systems to run its operations, it’s hard to decipher which data in which system is correct. If you’re relying a on a hodgepodge of solutions to run your business, multiple data entry processes will undoubtedly create inaccuracies. In the cannabis industry, relying on bad data could result in compliance issues or costly product recalls.
4. Lack of Visibility
When accounting data lives in its own system, it’s impossible to compare and analyze it in relation to the rest of your business. Without access to company-wide data, you don’t have the information you need to identify bottlenecks or process inefficiencies, making it difficult to hit profitable targets.
5. Lack of Operational and Inventory Capabilities
As your cannabis business becomes more complex, your accounting software won’t have the capabilities to accurately track costs, strain, labor and quality audits, all critical components of a successful cannabis operation.
Upgrading to an Integrated Solution
Because an ERP system manages all areas of your business including finance and operations, seed-to-sale, compliance, quality and traceability, you no longer require multiple systems to manage individual departments.
By eliminating the need for disconnected systems and the inherent errors that come along with duplicate data entry, you can ensure superior data integrity and greater efficiency.
To make sure you choose the right solution for your cannabis business, look for an industry-specific system that integrates the following features:
Operations and Finance
- Track key metrics such as strain, costs and labor
- Keep track of costs to better understand which product lines are most profitable
- Manage multi-company finance and operations
Cultivation and Harvest
- Track clone propagation for visibility into replanting, trellising and more
- Account for inventory waste and capture inventory adjustments
- Manage fertigation activities
Processing Edibles and Infused Products
- Automate production sequencing
- Reduce production waste
- Manage cannabis and food-specific requirements
Quality and Compliance
- Support for GMP standards and US state/Health Canada reporting
- Mitigate recalls with robust recall management features
- Optimize compliance
Inventory and Distribution
- Make faster, better decisions with accurate inventory data
- Keep track of inventory movement with advanced lot traceability
- Manage customers, suppliers and alternate suppliers
Selecting the Right Cannabis ERP System
In a world of generic software solutions, selecting an ERP system built specifically for cannabis cultivators and processors will help you manage the unique challenges of the industry more effectively. To perform at its full potential, your company needs a solution developed and implemented by experts who thoroughly understand your challenges and needs.
Compared to generic solutions that require extensive customization to address costing, US state and Health Canada compliance reporting, recall management and inventory control challenges inherent to the cannabis industry, a cannabis-specific ERP will come equipped with the tools you need to be successful. For more assistance on the ERP selection process, download our ERP Selection Guide for Cannabis Cultivators and Processors.
CannaBusiness ERP is an all-in-one solution to manage your entire cannabis business including finance and operations, seed-to-sale, compliance, quality and traceability. It offers out-of-the-box features and functionality built to help cannabis cultivators and processors streamline operations and grow.