3 Things Dispensaries Should Know about Cannabis and Cash Management

    Nov 17 2020

    Topics: Retail - Cannabis

    Due to strict federal legislation, cannabis dispensaries in the United States have limited access to banking. As a result, they operate primarily on a cash basis. Because most transactions are processed in cash, cash management is a critical topic for dispensaries. There’s a greater need to manage cash effectively in the cannabis industry.

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    Your dispensary is heavily reliant on cash, and the way you track, manage, and secure your cash will make a significant difference in your profitability. Here’s what you should know about cannabis and cash management.

    1. Cash Security Is Critical

    You take in a lot of cash every day out of necessity; you can’t accept other forms of payments. Unfortunately, this isn’t a secret, and it puts you at risk of internal and external theft. 

    Not only do you have to find reliable and honest employees who you trust, but you also have to ensure you have processes in place to promote accountability and create an audit trail. What’s more, you must ensure your cash is secure not only on site but also during transport. Ideally, cash on site should be securely stored in a safe, and it’s a good idea to keep the minimum amount of cash on hand at all times. 

    2. Inefficient Cash Management Processes Will Cost You

    When you’re managing cash manually, your employees are spending hours every day counting, recounting, sorting, and reconciling the day’s tallies. These labor hours add up to cost you money. At the same time, those employees may make accounting errors that also result in losses. The more inefficient your cash management processes are, the more likely you are to face cash handling mistakes and avoidable losses.

    3. Cash Management Automation Will Save You Money and Keep Your Cash Safe

    You may not be able to automate payments in terms of offering debit and credit options, but you may automate cash management. This is critical for dispensaries for many reasons. 

    First, smart safes for the cannabis sector will keep your cash more secure on site. Because they will be integrated with cash management software, however, their benefits go far beyond cash security.

    A smart safe will also keep track of every single cash movement, so you may monitor your cash at all times. PIN entries for transactions create an audit trail and ensure employee accountability, as well. You could also automate your customer transactions by investing in a coin and banknote recycler. This device accepts, validates, dispenses, and reconciles cash automatically for customer transactions, while also dispensing floats and keeping your cash secure in a vault. 

    If you use armored transit to transport your tax payments to a secure site, you’ll also be glad to know that you would forecast your cash needs with cash management software. Using your cash history, the smart safe will help you predict when you’ll need to drop off cash, which will help optimize the number of cash-in-transit pickups you need. 

    Cannabis dispensaries face many cash management risks and challenges, from cash security to high labor costs while handling cash. The right technology partner who understands your industry’s unique needs will help you eliminate these challenges and protect your cash with cash management devices like smart safes, coin and banknote recyclers, and cash management software.

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    Andrea Lombardi

    Andrea Lombardi

    Andrea joined the CashTech team upon its inception in 2003. Learning the business from the ground up, she now utilizes her expertise in account management, planning, and negotiation while managing the daily operations of CashTech’s sales, marketing, and logistics departments. Andrea holds a bachelor’s degree from the University of Western Ontario. She enjoys travelling and has a passion for personal fitness, including obtaining her kettlebell certification. Andrea lives in Toronto with her husband and two young sons.

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