Why All Cannabis Dispensaries Should Use Cash Management Technology
Marijuana dispensaries—also known as cannabis retail stores—exist because U.S. federal law prohibits cannabis from being prescribed and filled at pharmacies. Some states only offer licenses to medical dispensaries. Some offer both medical and recreational licenses, and some prohibit the sale of marijuana entirely; however, most states allow CBD-infused products. According to the Brightfield Group, CBD-infused products—most often derived from hemp (another plant within the cannabis family)—have increased profits by more than 568 percent since 2018; furthermore, strong growth drivers indicate the total U.S. cannabis market is worth over $22.7 billion. Indeed, this lucrative, rapidly growing market has entrepreneurs chomping at the bit to open more cannabis dispensaries. Unfortunately, thriving in this market isn’t as simple as it seems: those fortunate enough to obtain and afford a license—either through lottery or pocketbook—still face the challenge of currency management.
Dispensaries As a Cash-Only Industry
Since many financial institutions are unwilling to take money from dispensaries, currency management can prove difficult in the cannabis industry. Furthermore, since credit and debit transactions are federally regulated, most dispensaries operate as cash-only businesses to avoid conflict. While cash-only enterprises enjoy the benefits of avoiding credit card fees and more straightforward accounting due to monitoring fewer financial channels, they suffer manual currency management risks: Since cash payments don’t leave a paper trail, they make it hard for businesses to reconcile a business’s bookkeeping with confidence each day. When you factor in human error and imperfect practices, cash isn’t always recorded correctly for the books.
Currency Management Technology Can Help
Thankfully, there’s a solution for cash-only enterprises: currency management systems. Currency management systems are known by many different names –– currency counters, cash counters, money counters, bill counters, cash counting technology, etc. Regardless of the name, these machines serve an essential function for businesses operating in high cash volumes. They provide an automatic, efficient, and accurate way for cash-heavy enterprises to effectively track, maintain, and balance incoming and outgoing currency with ease.
Reduce Cash Counting Time
Counting cash takes serious time. Some dispensaries report up to four hours of register reconciliation per day, a serious dent in the pocketbook in the longterm. By implementing cash management devices, you can cut this time in a fourth or more and improve your bottom line.
While your employees may claim to have an eagle eye when it comes to spotting counterfeits, many fakes aren’t visible to the human eye—or detectable by pens. By investing in currency authenticators, you can scan for counterfeits at the point-of-sale and mitigate fraud.
Furthermore, make sure you invest in quality currency management solutions. While you might find some devices on the cheaper end, they often aren’t bank-grade. Financial institutions deal with cash daily and as such, are the biggest users of desktop commercial money counters. Cash is the center of your business as a dispensary—don’t skimp on critical tools.
Comply with Regulation
Accurate record-keeping is critical as a business owner. By implementing currency management devices, you will receive machine-generated records of the inflow of cash. These reports help prove your legitimacy in the eyes of auditors and financial institutions alike.
Invest in Your Business
Prudent dispensary and CBD-shop owners know that accurate currency management systems are the only way to maintain a viable business plan. Currency counting machines from trusted providers help cash-based businesses reduce cash-processing time, increase security, and cut costs. We all know, “time is money;” therefore, making the cash counting process as accurate, quick, and painless as possible saves businesses time and money. Most importantly, the accuracy of these machines provides security and peace of mind for accountants by enabling them to know exactly how much is in the till, or safe, at any given time.
Questions? Reach out to Teksetra to learn more about our currency management technology.
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