Why Inventory Deserves a Second Look in Cannabis Cultivation

Inventory rarely draws the same attention as cultivation methods or regulatory headlines, yet it often tells the clearest story about how a cannabis operation is run. AAFCPAs’ Janice O’Reilly, CPA, CGMA, Partner, explores this topic in a recent article published in Greenhouse Product News, showing how insights from dispensary operations can help growers manage inventory more strategically.

O’Reilly notes that inventory reflects cash flow discipline, operational foresight, and the strength of relationships with retail partners. Retailers monitor product movement, track shelf life, and adjust orders based on sales performance. Growers who apply similar practices can reduce waste, better align production with demand, and maintain trust across the supply chain.

Data accuracy and compliance remain central to sound inventory management. Supply chain systems such as Metrc require precise tracking of units, packaging, and shipments. Errors or inconsistencies can obscure operational realities and create regulatory risk. By combining compliance discipline with practical insights from retail reporting, growers gain a clearer picture of both performance and profitability.

Relationships with retail teams are equally important. Many dispensaries operate without dedicated inventory managers, and frequent staff turnover can complicate product handling. Ongoing communication, training, and sharing of actionable insights help ensure inventory moves efficiently and partnerships remain strong. Growers who cultivate these connections position themselves for steadier margins and smoother operations.

These high-level lessons show why inventory management is more than a back-office task. Read the full article on cannabis inventory management strategies in Greenhouse Product News.

How We Help Cannabis Operators

AAFCPAs has been leading the way in the cannabis space since 2012, recognized nationally for our insight into the industry and the complex, evolving regulatory landscape. Our team of CPAs, CFOs, tax and estate planning attorneys, wealth advisors, and specialists in M&A, technology, process, and risk advisory combines cannabis-specific expertise with comprehensive financial and operational support. We help cannabis operators navigate both federal and state regulations, optimize tax and financial strategies, and make informed decisions that improve cash flow.