Direct work attributed to: Kay
The Challenge
This national cannabis company had many locations all over the country. Each state had it’s own laws governing the sale and movement of product. They had no one qualified enough to give the state wholesale auditors what they needed to pass the audit. They had no process, a messy accounting system, and no way to tie out accounting transactions with the state tracking system. The audit was reviewing and verifying 3 years of wholesale transfers which made the project even more stressful for the company while they were already drowning in other areas of the business that needed their urgent attention.
The Solution
The entire process needed to be mapped out and a new process needed to be created. Every system required exploration and dissection to understand what information is available, and where that information is stored in reports and documents. Multiple licenses, up to 10 per order, were required for each wholesale order so the license tie out would be the most critical piece.
Step 1:
Identifying failures & finding solutions.
Mine for all the data required for a tie-out from the state tracking system and the accounting system transactions. Map out the data that corresponds to each order and license. Split out every order in the manner the state auditors request. Move through this project as quickly and accurately as possible since they were already behind and set a new recording process along the way.
Step 2:
Getting to work and establishing accuracy.
Work was initiated and reports from the state system were compared to the orders and totals of transactions in the accounting system. Invoices were then dissected by line with the same comparison, and no licenses were listed in the accounting system at all. Using a new process, listed in step 3, once the data was confirmed, all transactions were updated retroactively with license details within the accounting system. The audit work then began, with orders broken down and backup documents provided to the auditors. Ultimately, the audit was a success and the company was in the clear.
Step 3:
Implementing new processes to move forward confidently and accurately.
New processes were created to ensure the accounting system had all vital data per order, to remain in compliance and be prepared for the next state audit. A successful collaboration with the NetSuite developer team was initiated and executed, so license detail fields were created on each order and detailed reports were established for current and consistent tracking. and transfer amounts to be captured. There was a cadence set to internally audit the wholesale transfers and compare to the state system for consistent compliance and proactive adjustments.
The Results
The company was able to satisfy the audit requirements and had a new, systematized process in place to remain compliant in real time. Since they were no longer stressed about the 3-year mess, they were able to move on to other vital areas in the company needing attention.
Ask us how we can help.
Many companies struggle with problems like these. Maybe you have something a little different going on, or maybe you just need help and don't know what you need. You don't have to know everything about your accounting right now. You don't need to know how to do it, just how to recognize it. Reach out so we can get you there.
