The Cost of Doing Business in Cash
Although medical or adult use is legal in thirty-eight states, four United States territories, and Washington D.C., the fight to legalize the plant on a federal level is ongoing. This creates multiple challenges for industry businesses, many of which find themselves operating on a cash-only basis. In fact, Forbes.com recently reported 70 percent of cannabis businesses resort to cash-run operations. “Imagine running a multimillion-dollar business on the envelope system,” Naomi Granger, founder of the National Association of Cannabis Accounting and Tax Professionals, offered as an analogy. Running a business using a cash-only (or mainly cash) system is literally pricey. Some expenses to consider include: Labor costs Employees must be paid, which means businesses must always have a significant amount of cash on hand. And let’s not forget the complexities of navigating benefits like healthcare and paid time off in a harshly regulated environment. Security, storage, and safety Where...