Chart of Accounts Design
The chart is structured so that production activity, selling activity and general administrative activity are separated at the transaction level. Retrofitting that separation at year end is expensive and less defensible than capturing it as transactions post.
- Departmental and location dimensions
- Production cost pools separated from selling and administrative accounts
- Consistent treatment of compliance, security and testing costs
- Intercompany accounts where multiple entities exist
The Monthly Close
A defined close checklist with owners and due dates produces reliable statements by a predictable date. Bank, cash, inventory, payables, payroll, accruals and intercompany balances are reconciled with supporting schedules retained.
Cash-Intensive Recordkeeping
Where currency volumes are significant, documentation standards must be higher: counted-by and verified-by signatures, sequential logs, vault reconciliation and independent review.
Cleanup and Catch-Up
For operators whose records have fallen behind, we perform structured catch-up work: rebuild the ledger, reconcile inventory, correct classifications and document the remediation.
Frequently Asked Questions
- Which accounting platform works best for cannabis operators?
- Most operators use a mainstream general ledger paired with an inventory or point-of-sale system and the state tracking system. The integration and reconciliation discipline matter more than the specific brand.
- How far behind is too far behind?
- Nothing is unrecoverable, but the cost of reconstruction rises quickly. If reconciliations are more than a quarter behind, a structured cleanup is usually warranted.
- Do you provide the accounting staff or train ours?
- Both models are common. We can carry the function or design the process, document it and train your internal team.