Operational Audits
Where your process is leaking money. Often the fastest path to margin in a business that cannot raise prices.
Not a financial audit — an examination of where your process is leaking money. Often the fastest path to margin improvement in a business that cannot easily raise prices.
What's Included
Why This Differs In Cannabis
Price compression is the defining pressure in maturing cannabis markets. Operators who cannot raise prices have to lower costs, and most do not know precisely where their costs are.
There is a second effect specific to cannabis: operational improvements that reduce waste and improve yield increase the proportion of your spending that ends up capitalized in sellable inventory rather than written off — which improves your tax position as well as your margin. Operational efficiency and 280E efficiency point the same direction.
Operational efficiency and 280E efficiency point the same direction.
Why MCA
We have served licensed cannabis operators since 2015 — one of the first firms in the country to build a practice around it — and we have worked with more than 100 operators across 30+ states. Cannabis is all we do, and all we have ever done.
Frequently Asked
How is this different from a financial audit?
A financial audit asks whether the numbers are right. This asks whether the operation behind them is efficient.
What is the typical finding?
Labor allocation, waste rates, and purchasing terms, most often.
How long?
Two to four weeks including site visits.