When you’re looking to enhance your business operations, knowing how to track your product inventory and sales is essential for staying compliant.
A seed-to-sale tracking spreadsheet helps you manage and control inventory in your business by keeping track of sales, processing, and cultivation. The entire system manages and tracks the inventory within the cultivation business you are operating.
Knowing how and what to track in your operations can minimize headaches and potential compliant fines in the long run.
This article explores the critical seed-to-sale tracking spreadsheet elements your business needs to run smoothly.
Brief Explanation Of Seed-To-Sale Tracking
Seed-to-sale tracking is essentially managing, tracking, and controlling the business inventory from processing to sales. For cultivation, it can track cultivation processes that make it easy for companies to manage and analyze their cannabis crops.
Many cannabis companies incorporate seed-to-sale tracking to ensure they stay compliant within the industry.
When tracking, you need to analyze and know the quantity of cannabis produced by tracking the plant life cycle within your inventory which is important to know for compliance and tax reasons.
Tax compliance is a major asset for companies to navigate around, especially knowing how to utilize the 280e loophole.
A seed tracking sheet ensures the business maintains its smooth operations in compliance with the regulations set forth by the government. You need to have clear reporting to your local state government to be compliant.
Creating A Seed-To-Sale Tracking Spreadsheet
Creating a seed-to-sale tracking spreadsheet contains critical information for your cultivation to operate smoothly.
Necessary Data And Information To Track
Here we evaluate some critical data and information to track in your spreadsheet.
1. Seed And Strain Details
Getting enough information about the seed and strain details is ideal for knowing what product you’re going to be selling. Specific plant seeds and strains yield a different quantity of buds or flowers. Knowing the strain can give you insight into the amount it will produce that’s critical to know in staying compliant in business. It also helps regulators track bad cannabis products and recall them back to their original source.
2. Cultivation Information
You need to monitor all cannabis plants’ lifecycle to ensure you are compliant with your local state. Staying within the limit of how much you can grow is important. A plant goes from seed to full plant growth in a matter of weeks and tracking all of the plant’s health is critical.
Understanding every different plant’s nutrient, water, and environmental intake can help you monitor your plants more closely. If you see a plant that isn’t getting enough and then dies off, you have full tracking of the plant and can report the decrease in production it doesn’t yield.
3. Harvest And Processing Data
Keeping track of the harvest and processing data can give you insight into the amount of cannabis you need to harvest and package for shipment. Tracking the processing procedure of drying, curing, milling, trimming, storing, and testing is necessary to ensure you have the accurate quantity and type of products that are in line with compliant procedures.
4. Inventory Management
You need to track the inventory management of the seed-to-sale cultivation procedure to know how many plants you harvest and dry to give to your customers and the amount needed to be compliant with your local state regulations. Utilizing proper procedures for cannabis inventory accounting can allow for easy reporting when tax season arrives.
5. Sales And Distribution
The sales and distribution is another element you need to have within your tracking spreadsheet. Getting a clear picture of the amount of cannabis plants you’re selling is essential to adhering to compliant regulations. The costs associated must also be tracked for tax-compliant purposes. Labeling and tagging the plants need to be kept track of to ensure you distribute them in conjunction with the state regulations.
Benefits of Using a Seed-to-Sale Tracking Spreadsheet
A seed-to-sale tracking spreadsheet helps maintain compliance with various state and federal regulations while also offering several other benefits.
Here are some of the advantages of utilizing such a tracking system:
- Regulatory Compliance: Cannabis is heavily regulated, and strict compliance with state and local laws is necessary. A seed-to-sale spreadsheet helps track each plant’s growth, sale, and destruction, ensuring that the business operates within the legal framework.
- Inventory Management: Maintaining accurate records of inventory, from seed or clone to final product, ensures that there are no discrepancies, missing products, or losses in the supply chain.
- Quality Control: The ability to monitor each step of the cultivation and production process allows for better quality control. You can identify and address any issues promptly, which can enhance the quality of your products.
- Data Analysis: Over time, the data collected in the spreadsheet can provide valuable insights into your operations. You can use this data to optimize your cultivation processes, identify trends, and make informed decisions about product development.
- Financial Management: By tracking costs, revenue, and profit margins at every stage of the supply chain, you can gain a clear understanding of your financial performance and identify areas for cost reduction and revenue growth.
- Tax Compliance: Accurate records are essential for calculating and paying taxes. A seed-to-sale tracking system can help you calculate excise taxes and other obligations more efficiently.
A seed-to-sale tracking spreadsheet is a crucial tool for cannabis businesses since it ensures businesses maintain compliance with regulations, helps manage inventory, improves quality control, and provides valuable data for decision-making.
It can also enhance security, efficiency, and customer confidence while reducing the risks associated with operating in a highly regulated industry.
Choosing The Right Seed To Sale Tracking Procedure
You can choose to develop a seed-to-sale spreadsheet for tracking the cannabis cultivation process or you can use a seed-to-sale software.
A seed-to-sale software minimizes the work you have to do by reducing the admin tasks of reporting, tracking, keeping the data updated, and ensuring the entire process is compliant. You won’t have to do much of the tracking manually but rely on a software system that does most of the work for you.
However, it does have its costs and may not be ideal for new businesses starting in the cannabis industry.
If you’re strapped for funds, conducting the daily tasks of tracking the cultivation process on a spreadsheet can keep more money in your bank. But you may encounter compliant issues if you don’t manage and track properly.
For those looking to find an accountant who can work with your seed-to-sale tracking software to analyze inventory reporting for finances, you can look no further than Green Space Accounting.
The team of accountants offers business owners more time in their business while the experts work on finances and tax reporting.