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How one team of innovators is simplifying regulatory audits for the cannabis industry

Apr 10, 2019

When it comes to cannabis, auditing is more than just an IRS buzzword U2014 in fact, audits in the cannabis industry pertain to more than just money. Inventory and compliance audits are something for which cannabis business owners, from dispensaries to grow houses, need to be prepared.

Inventory and regulatory audits ensure that cannabis businesses are in compliance with state regulation laws, and professional auditing software can protect businesses from the high fines that are tacked on to any inventory tracking failure — not to mention that many cannabis businesses can lose their licenses over the most trivial audits.

But traditional auditing programs do not always translate well to the needs of the cannabis industry, which, of course, is still considered federally illegal in North America. Many companies design their own auditing policy and train employees to perform regular inventory counts which are then relayed back to local government regulators.

It’s all quite tedious, especially when many cannabis businesses are brand new and still trying to figure out the landscape of the market.

Simplifya creates an “ease of compliance” for the cannabis industry

Tracking inventory and compliance is made easier with programs designed specifically for the cannabis industry. Simplifya, a regulatory compliance tool that gives cannabis business owners what they call a “360-degree view” of their compliance, is one such program. Designed with insight from the legal and tech side of cannabis, Simplifya’s software empowers cannabis business owners to build their own standard operating procedures that are flexible with their schedule and their business model.

[How one New York law firm is leveraging their licensing expertise in the recreational cannabis landscape]

In a statement to PotNetwork, the team at Simplifya described their auditing tool as a checklist that cannabis businesses can use to self-audit every tier of their business—from inventory to lighting — even advertising.

“Our team of lawyers and regulatory analysts take all of the complex regulations for each license type and drills them down into easily understandable and digestible language,” said Amy Larson, Vice President of Marketing with Simplifya. “Then it delivers that content up via a “Yes” or “No” checklist.”

The point of Simplifya’s auditing software is to simplify the entire compliance procedure, creating an “ease of compliance” that allows cannabis businesses to integrate self-audits into their business model seamlessly. Because compliance itself means so many different things in this industry, this software includes inventory management as well as seed-to-sale tracking, point-of-sale tracking, scheduling programs, and training modules for new employees.

“The beauty of the software . . . is that it allows licensed operators to check the overall compliance health of their business,” Amy explained to PotNetwork News.

She continued: “Additionally, a big part of cannabis compliance is simple document storage. The Simplifya platform also provides a feature called Smart Cabinet, which functions similar to Google Drive or Dropbox, but also includes a ‘cheat sheet’ of which documents each business type needs to keep on hand and available for regulators.”

Convenience for the cannabis industry

To have all of these management programs in one auditing software program makes it all that more convenient for a cannabis business owner to maintain their regulatory compliance, as well as improve their sales goals, by keeping them and their employees on top of the product inventory. The software is currently available in eleven states, with programs for eight more states coming soon, including New Mexico.

[How this cannabis tech firm is placing information right at your budtender's fingertips]

When it comes to auditing in the cannabis sphere, Simplifiya is doing their part to make the entire procedure as painless as possible.

In an industry plagued by complex legal procedures and a lot of bureaucratic red tape, it is refreshing to see businesses step up and deliver a service that makes it easier for the cannabis industry to stay on the right side of the law. As the industry continues to grow, and as regulations continue to change, programs like Simplifya will empower cannabis business owners to stay one step ahead. 


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