Your financial information tells the story of your cannabis business but unless that information is both timely and accurate, the story is fiction. Many of you are so occupied with the daily operations of your business that you don’t or can’t spend the time needed to be sure your financial data is up to date and accurate. And for many of you, understanding the ins and outs of financial information is not a strong suit, so you avoid the “hard” thing to do. What you may not realize is that your financial information is the only true indicator of the success or failure of your business. You can ignore it for a little while but it will catch up with you. Better to see what is happening, when it is happening, than be surprised by what appears to be a “sudden” downturn later on.
Oregon legalized recreational marijuana sales on October 1, 2015. Some of you had customers lined up out the door and around the corner. It was very exciting and it felt like you were finally on the road to long term profitability. But how did you really do? Do you know? Are you confident that the information you have is reliable?
One of the major reasons businesses fail is poor management, and that goes to financial management as well. If cannabis financial management is not in your area of expertise, don’t wait, get help. Hire your own bookkeeper, engage an outside firm or find someone who can at least help you with the basics.
Lastly learn how to read and understand your financial statements. Learn how they can become a tool for managing your business. A lot of business owners who don’t have financial backgrounds do a course of self-study to familiarize themselves with what the core financial statements are, how they relate to one another, and how they can be used to drive the decision making in their business.
Make the story of your cannabis business true and relevant. Then use it regularly to lead your business to long term success.