CANNABIS COMPLIANCE, AUDITS

& POS TRACKING

Whether you are trying to enter the cannabis industry, or you are already established, cannabis compliance and state regulations change regularly. From POS tracking to METRC to employment regulations, our compliance experts can ensure your cannabis business is in compliance and able to continue operating in excellence!

METRC, BIOTRACK & POS TRACKING AUDITS

Knowing where you stand is the best place to start when trying to improve. Simply hoping for improvements without understanding your state and municipality’s rules and regulations can be very costly.

It’s important when conducting a cannabis compliance audit that all the main areas of concern are covered.

Our compliance consultants will evaluate your cannabis operation for all of the key areas of compliance and improvement, such as:

  • METRC or BioTrack Use & Accuracy
  • Standard Operating Procedures
  • Inventory Reconciliation
  • Shipping Manifests
  • Quality Assurance
  • Packaging & Storage
  • Waste Management & Quarantine
    Signage
  • Diversion Prevention, Safety & Security
  • Record Keeping
  • State Requirements
  • Federal Requirements

There’s no point in running a stressed business. Get peace of mind and massive systems improvements with a Cannabis Compliance Audit.

CONCERNED ABOUT YOUR POS TRACKING & CANNABIS COMPLIANCE?

If you have doubts or concerns about your current POS tracking, operating procedures, or personnel behaviors, it’s time for a cannabis compliance audit.

Cannabis compliance audits assess your inventory, POS tracking data, and standard operating procedures to identify errors, gaps, and room for improvement.

Contact us today for more information!

STATE CANNABIS COMPLIANCE
& POS TRACKING REQUIREMENTS

NEED HELP SETTING UP
OR OPTIMIZING METRC?

Learn more about our METRC
consulting services.

READY TO SCALE WITH
DATA-DRIVEN INSIGHTS?

Learn more about how our data experts leverage METRC to give you smart strategic insights to make better business decisions.

In addition to maintaining accurate and healthy POS tracking and compliance systems, you also need to be aware of and in compliance with state and federal regulations.

State requirements tend to cover more granular details related to operating procedures and personnel, whereas federal requirements tend to cover issues related to transportation and diversion prevention.

Although every state is different and has unique requirements for compliance and licensing, your state will often scrutinize matters such as:

  • Employment Guidelines
  • Signage & Licensing
  • Badges
  • Security & Video Surveillance
  • Records & Operating Plans
  • Training & Employee Records
  • Insurance Requirements


State requirements for POS tracking and operations vary greatly and information on your state’s guidelines may be buried in years of layers of legislation. Having an expert in your state’s regulations can go a long way to ensure there is no threat to your operation be put on probation or shut down temporarily or entirely.

FEDERAL CANNABIS COMPLIANCE
AND THE COLE MEMORANDUM

Federal cannabis compliance requires a deep dive into understanding the Cole Memorandum, the FinCEN guidelines, and the Controlled Substances Act (CSA).

These three documents and guidelines outline HYC’s approaches in the industry and help guide cannabis businesses in maintaining compliance from seed to sale.

Knowing where you stand is the best place to start when trying to improve. Simply hoping for improvements without understanding your state and municipality’s rules and regulations can be very costly.

It’s important when conducting a cannabis compliance audit that all the main areas of concern are covered. Let’s start at the federal level and work our way down to the state and local level.

The Cole Memorandum, although rescinded by former Attorney General Jeff Sessions, still acts as an important reference point for cannabis businesses as well as the state banks who bank the industry.

The Cole Memorandum is a document passed down by the Obama administration for the purpose of supporting legally state licensed cannabis businesses around the country.

The main purposes of the Cole Memorandum are to outline steps to:

  • Prevent distribution of cannabis to minors
  • Prevent cannabis revenue from funding criminal enterprises, gangs or cartels
  • Prevent cannabis from moving out of states where it is legal
  • Prevent use of state-legal cannabis sales as a cover for illegal activity
  • Prevent violence and use of firearms in growing or distributing cannabis
  • Prevent drugged driving or exacerbation of other adverse public health consequences associated with cannabis use
  • Prevent growing cannabis on public lands
  • Prevent cannabis possession or use on federal property (national parks, government property, etc.)

In addition to the Cole Memorandum, the cannabis industry and POS tracking systems have been shaped by FinCEN guidelines and the Controlled Substances Act.

FinCEN GUIDELINES &
THE CONTROLLED SUBSTANCES ACT

DOES YOUR CANNABUSINESS POS TRACKING SYSTEM NEED A COMPLIANCE AUDIT?

Read our blog on cannabis compliance and the key items to look out for in an audit.

The FinCEN guidelines help us understand how the federal government wants cannabis businesses to use seed-to-sale tracking, POS tracking, and monitoring cash handling and accounting.

The main objective is ensuring that money is not being laundered. Having accurate and effective cash handling cannabis standard operating procedures in place can help minimize any issues that a cultivation, extraction, or retail facility may encounter when complying with these guidelines.

The Controlled Substances Act (CSA) focuses mainly on inventory with its Point of Sale (POS) tracking. Similar to a pharmacy, the pharmacist in charge will know the inventory count of any medication they have on hand, at any given time. The inventory is tracked digitally, and a physical count of inventory on the shelves should match the count in the system in real time.

POS tracking is set up in the same manner. Every gram or unit of product must be tracked and having a tracking system in place to ensure physical and digital inventory is essential.

Bringing these items together is where the magic happens.

The Cole memorandum creates the structure for how cannabis businesses can operate, while the FinCEN guidelines and CSA create traditional accounting methods comparing inventory to cash on hand. If the inventory and cash don’t line up, it can immediately be determined that there is an issue with one area or another.

Too much cash could indicate the store could be laundering money. Inventory shortage could mean that someone is stealing or diverting product.

Working within these three guidelines creates a system for owners, operators, investors, and regulators to develop operational effectiveness. Addressing compliance regulations and with setting up POS tracking from the onset will help your business stay in front of any issues or red flags that may present themselves, avoiding costly fines.

APPLYING FOR A CANNABIS BUSINESS LICENSE?

Our team of experts helps your business stay compliant and ahead of the curve when it comes to changes in the law.

Applying for a cannabis license whether to open a dispensary, garden, or to become a manufacturer of infused products (MIP) can be extremely tough and time-consuming. Additionally, compliance and proper auditing SOPs are an essential element of a strong cannabis business application.

Our team of regulatory consultants are experts in helping businesses, managers, and employees set up POS tracking, obtain their cannabis business licenses and occupational licensees (aka, “badges”).

Contact Us

Submit your request and a member of our team
will get back to you Soon!