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Being that it is October and Halloween is quickly approaching…
Running a dispensary is a lot like trick-or- treating… Ok, I know it is a little far-fetched but hear me out for a second…
You never want to run out of candy for your trick or treaters but you want just enough to not have a pile of leftover candy…Similar to running a dispensary, you don’t want to run out of inventory for your customers, or end up with a bunch of extra inventory that may be unsellable at full retail price due to age. In essence, the principle is the same, supply and demand. How many kids typically visit each year? How much candy do I need to not run out but not overbuy?
Let us apply this to a dispensary scenario…
IA lot of dispensaries will purchase flower in bulk and then separate into individual quantities to be ready for quick purchase by a consumer. The typical units these are broken down into are grams, eighths, quarters, halves, and full ounces. This leads to the ultimate question of how do I allocate these quantities to be most beneficial for sales to meet the demand, while at the same time not have overstock that is just sitting there at the end of the month literally drying up?
With trick-or-treaters, it is a little bit easier… all you need to do is look around your neighborhood and count the houses and kids. At a dispensary, this can get a bit more complicated. This is where an experienced cannabis accountant can help. Yes, your accountant should be able to help you in this area!
How your cannabis accountant helps:
1. We will pull reports from your POS (point-of-sale) system and run a detailed analysis of the most recent and prior twelve months of sales across all categories
2. From running these different reports and analyses we can advise you on the best way to allocate quantities of flower to be ready for quick sale based on customer demand and historical sales data
3. We can also tell you based on prior sales of other products such as edibles or oils, how much of each amount you roughly should keep on hand to best meet customer demand
Unlike the Halloween night scenario, you do not get to just put all used inventory into a big bag and enjoy over the next 2 months (though that would be fun). In the cannabis business, old inventory will need to be sold off at a discount as flower, oils, and concentrates have a certain shelf life before their potency and overall quality begin to decline. Even edibles get old over time… Therefore, having proper professional assistance and planning tools in place for your dispensary are so important when making inventory purchase and even allocation decisions like the flower example above.
Important Upcoming Tax Deadlines
10/15/2020 –
Individual Tax Return and C-Corporation Extended Tax Filing Deadline
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