There are many facets to running a successful marijuana business and maintaining a healthy bottom line should always be a top priority. Managing cannabis retailer expenses is imperative to keeping your business profitable. Implementing innovative dispensary software can simplify spending and even help businesses maximize their returns.
In this article, we’ll describe a few ways dispensary software can help keep track of cannabis retailer expenses.
One of the most frequent cannabis retailer expenses is paying for product. Whether your marijuana dispensary buys from independent vendors or large-scale distributors, keeping track of who sold what for how much can get very confusing. Utilizing your dispensary software can make your life much easier.
Batch tracking will allow dispensary owners and managers to quickly view purchases made from specific marijuana vendors. Payment status is displayed as either paid in full or partial payment. The outstanding amount is shown for partial payments and cannabis retailers can update the status once the purchase has been completed. These types of payments will then be categorized as vendor expenses and can be viewed in digital or printable expense reports.
Most marijuana dispensaries operate under a leasing agreement and this requires monthly rent payments that are subject to go up on an annual basis. Rent is often one of the larger cannabis retailer expenses that must be paid but luckily it is usually due on the same day every month. Often times dispensaries will set-up an automatic payment so they don’t forget to pay the rent.
It is also important to add rent payments to your expenses using your dispensary software. Business owners can also select the account they prefer to pay from when entering their rent into the expenses. Typically, cannabis retailers will have a couple of different accounts that are used for different types of purchases so this feature is invaluable.
Paying your marijuana dispensary staff consistently and accurately is essential to the wellbeing of your business. Managers, budtenders, receptionists, and security guards all expect to be paid on time every time. Once you’ve calculated the total cost of your staff payroll, add this expense to recur every two weeks or bi-monthly to keep your employees happy.
The amount paid for payroll is completely customizable so owners can adjust the cost for raise increases, new hires, and sick days. All payroll payments will be classified under staff salary and can be viewed on expense reports for future reference.
Marketing and Advertising
Setting aside a dispensary marketing and advertising budget for your cannabis retailer is imperative to building a brand. Not only does your business need to be easily searchable but dispensaries need to stand out amongst the competition to thrive. As it stands, marijuana businesses find the highest return on investment in the digital market, but print and outdoor advertising is not to be taken for granted.
Establishing a monthly marketing budget will certainly be an expense that can fluctuate depending on the amount of traffic flooding into your dispensary. If you have multiple dispensary locations, allocating funds to the retail locations that need a boost might be more productive. In any case, adding these payouts to your cannabis retailer expenses will help determine their effectiveness.
IndicaOnline dispensary software has developed comprehensive features to help retailers manage their expenses. To learn more about the benefits of installing our marijuana POS software, schedule a demonstration with one of our qualified trainers.