Audits – Cannabis Point of Sale

How to Use POS Reports to Stay Ready for a Surprise Audit

In the cannabis industry, compliance isn’t optional—it’s survival. Dispensary managers must be constantly prepared for unannounced audits from state regulatory bodies. These surprise inspections are meant to ensure that every product sold, tracked, and reported adheres to state law. A robust Point of Sale (POS) system is more than just a transaction tool—it’s a compliance partner. Leveraging the reporting features of your POS is one of the most effective ways to stay audit-ready at all times.

Understand What Auditors Look For

Regulators typically focus on inventory accuracy, sales limits, tax reporting, and seed-to-sale traceability. Discrepancies in these areas can lead to fines, license suspensions, or worse. That’s why dispensary managers must regularly use POS reports to ensure everything aligns with state-mandated systems like Metrc or BioTrack.

1. Inventory Reconciliation Reports

Auditors want to see a seamless connection between what your POS reports and what your inventory holds. Many modern cannabis POS systems allow you to generate real-time inventory reconciliation reports. These reports highlight variances between physical stock and recorded data.

Make it a daily habit to compare your on-hand inventory with your POS inventory reports. If there’s a mismatch—whether due to breakage, theft, or human error—document it immediately. Many systems allow “reason codes” to be applied when making adjustments, which can help during an audit.

2. Sales Reports by Date, Product, and Employee

Sales reports are essential for tracking daily and historical transactions. A well-maintained POS system provides filtered sales data by product type, date range, or employee, helping identify unusual patterns or over-limit transactions. Use these reports to spot red flags like bulk purchases that edge too close to daily purchase limits or returns that may seem suspicious.

For compliance, ensure that every sale has an associated customer profile or patient ID, where required. Exporting and saving daily summaries and cross-checking them against state compliance portals can help catch reporting lags or syncing issues early.

3. Tax Reports and Financial Summaries

During an audit, regulators will ask for documentation of all taxes collected and remitted. Use your POS to run state-specific tax reports, showing clear breakdowns of excise tax, local tax, and retail tax per transaction.

Dispensary managers should reconcile POS tax reports with accounting systems like QuickBooks or their bank statements weekly. Being able to provide this financial trail instantly can demonstrate operational transparency and proactive compliance.

4. Audit Logs and User Permissions

Every action in your POS—from voided sales to discounts—should be tracked. Most modern systems offer audit logs that detail who did what and when. Keep these logs secure and periodically review them for irregular activity.

Restrict user permissions within the POS system to ensure only authorized staff can issue refunds, apply discounts, or adjust inventory. This safeguards data integrity and shows auditors that internal controls are in place.

5. Compliance Dashboard Monitoring

Some POS systems offer built-in compliance dashboards that alert dispensary staff when thresholds are exceeded or documentation is missing. Use these tools proactively to maintain operational health. Automated alerts can flag potential compliance violations before they become a liability.

Putting It All Together

Audits are stressful, but they don’t have to be devastating—especially when your POS system is set up as a daily tool for compliance, not just transactions. Dispensary managers who make reporting reviews part of their routine gain peace of mind and show regulators they take compliance seriously. Remember: if you stay ready, you won’t have to get ready.