Demand is high for skilled financial experts who can guide company decisions through tracking cash flow, financial planning, tax preparation, and other critical activities that keep cannabis businesses compliant and profitable. That’s the Chief Financial Officer’s role, and it’s one of the most critical positions in a cannabis company.
A large part of a cannabis CFO’s job is centered around numerical data, managing income and expenses focusing on long-term company development. As the industry continues to break sales records across the country, cannabis CFOs must navigate the restrictive nature of the industry, taking care to meet all city, state, and federal regulations applicable to their business type.
Working with CEOs and other senior managers, CFOs assist with forecasting, cost-benefit analysis, and securing capital. These experts also develop practical key performance indicator data, which become the basis for many company decisions. T
his makes the job of a cannabis CFO particularly challenging, primarily if the cannabis company serves multiple areas. That’s why cannabis CFOs depend on specialized accounting tools to help them get the job done as accurately and effectively as possible.
Accounting ERP solutions are critical for the cannabis CFO’s success. Manually tracking financial data poses risks of inaccuracies, not to mention highly inefficient. ERP solutions allow cannabis CFOs to easily access valuable financial information compiled automatically, with real-time metric analysis that facilitates financial planning.
A true cannabis ERP solution covers all end-to-end seed-to-sale processes, ensuring that CFOs can maintain regulatory compliance while fostering long-term growth strategies.
Of course, by focusing on long-term growth, CFOs are not excused from delivering short-term results. Jon Paul, CFO at the San Francisco-based gummies company Plus Products, describes part of the cannabis CFO’s short-term role as needing “to come up with a viable financial model and come to cash flow positive sooner rather than the distant future.” But, he goes on to say, “without a good strategy, success will be hard work and maybe not even possible.”
Developing strategies that work both short and long term depend on finding the answers to these questions. And the answers are infinitely easier to obtain with the help of cannabis ERP accounting solutions that track company performance, market data, and supply chain activities.
Cannabis ERP solutions are highly specialized and meet very specific needs of a cannabis business. Generally speaking, the most effective ERP features for cannabis CFOs include the following functional capabilities:
Seed-to-Sale Tracking – Tracking all cannabis goods from seed to sale is an essential part of maintaining regulatory compliance, as well as for compiling valuable financial data for various accounting processes. Comprehensive ERP seed-to-sale tracking enlarges informational database content over time, providing insight into company operations. Inventory management solutions like this also help with IRS 471 and 280e tax requirements.
AI Forecasting – Through advancements in AI technology, CFOs can use cannabis ERP to predict market trends and ROI processes more accurately. These tools monitor business activities in real-time, factoring in complex multidimensional datasets to provide the most accurate predictive forecasting models possible. This helps CFOs make effective decisions and confidently guide their company into uncertain futures.
Compliance Assistance – In addition to seed-to-sale tracking compliance, ERP solutions can integrate with standardized METRC reporting platforms to streamline the compliance process. This helps ensure the accuracy of information, avoiding unnecessary regulatory pitfalls that might arise from data entry errors and other reporting issues. Not only does this save a cannabis business from operational disruptions, but it significantly reduces the amount of time and effort spent by CFOs on routine tasks.
Manual accounting isn’t just outdated – it is inefficient and inherently risky. For growing businesses, manual accounting practices will continue to become more and more time-consuming while providing fewer and fewer returns. Modern ERP solutions tailored to the needs of cannabis businesses make every executive action more strategic, more impactful, and more effective overall.
To be successful, the cannabis CFO can’t wait to integrate the latest ERP advancements. With a cannabis ERP strategy and clear financial visibility, they get the most effective financial tools for cannabis decision-making.
Investing in a comprehensive ERP solution for your cannabis business is an investment in your cannabis company’s longevity. Through an end-to-end seed-to-sale ERP solution, you gain the insight and ability to grow sustainably. If you need help deciding which system is right for your cannabis business, speak to one of our cannabis solution experts today.