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1. Introduction
The cannabis industry is rapidly growing, but with that growth comes a set of unique challenges, especially when managing the financial side of the business. One of the most intricate areas to navigate? Payroll. With the nuances in regulations, hours, and payments in the cannabis sector, ensuring your employees are paid accurately and on time becomes paramount. Enter automated payroll systems, a game-changer for dispensaries.
2. Key ways automation can help save your dispensary money
- Helps avoid time theft: Time theft is a serious problem for businesses of all sizes, and it can be especially costly for dispensaries. Automated payroll can help dispensaries avoid time theft in a number of ways. It can track employee hours more accurately. Automated payroll systems use time clocks or GPS tracking to track employee hours more accurately. This can help you identify and address time theft issues. It can identify suspicious activity. Automated payroll systems can identify suspicious activity, such as employees clocking in and out at the same time or clocking in early and clocking out late. This can help you investigate potential time theft cases. For example, one dispensary owner used automated payroll software to track their employees’ clock-in and clock-out times. This software helped them to identify employees who were clocking in late or clocking out early. The dispensary owner was able to address these issues and reduce time theft.
- Helps reduce errors: Manual payroll is prone to errors, such as incorrect hours worked, incorrect pay rates, and missed payments. Automated payroll eliminates these errors, which can save you money in the long run. For example, one dispensary owner accidentally paid one of their employees twice. This mistake cost the dispensary $1,000. Automated payroll software can help you avoid these errors by automating the calculations and ensuring that all of your employees are paid correctly.
- Saves time: Manual payroll can be time-consuming, especially for small businesses with a large number of employees. Automated payroll can save you hours of time each week, which you can then use to focus on other aspects of your business like driving profitable growth. For example, one dispensary owner used to spend 10 hours each week processing payroll. After implementing automated payroll software, they were able to reduce this time to two hours per week. Those eight hours of savings can now be dedicated to growing the business.
- Improves accuracy: Automated payroll is more accurate than manual payroll, which can help you avoid costly mistakes. For example, one dispensary owner used automated payroll software to track their payroll costs over time. This data showed them that they were overpaying their employees by $1,000 per month. By adjusting their payroll practices, they were able to save this money ($12,000+ savings a year).
- Increases compliance: Automated payroll helps you stay compliant with federal, state, and local payroll regulations. This is important to avoid costly fines and penalties. The U.S. Department of Labor (DOL) fines businesses up to $1,100 per day for each violation of wage and hour laws.
Recommended Reading: Biggest pain point with Payroll and HR software
3. Conclusion
In the dynamic world of the cannabis industry, every edge counts. Automated payroll isn’t just about convenience; it’s a strategic move that can yield significant financial benefits. For dispensaries aiming to streamline operations, boost accuracy, and ensure compliance, transitioning to an automated solution is more than a recommendation – it’s a necessity.
So if you’re concerned about time theft in your dispensary, automated payroll is a great way to help prevent it. It can help you track employee hours more accurately, identify suspicious activity, and enforce policies. This can save you money and help you protect your business from fraud.
If you’re not already using automated payroll, we encourage you to consider it.
Get in touch with us for an expert-led demo to know more about UZIO all-in-one payroll software.
