Activity-Based Costing (ABC) in Cannabis: How BatchNav Makes It Work Overhead costs are one of the biggest blind spots in cannabis manufacturing (representing 30-60% of costs). Rent, utilities, management salaries, depreciation, and administrative expenses often get spread across batches using crude, arbitrary percentages. The result? Misstated costs, distorted margins, and poor decision-making. This is where
Automating Direct Cost Capture in Cannabis Operations In cannabis cultivation and manufacturing, knowing the true cost of each batch is not just an accounting exercise—it’s a competitive advantage. Yet most operators still rely on spreadsheets or compliance-only tools, leaving them blind to which products are profitable and which are draining resources. BatchNav changes this. Our
BatchNav for Cannabis CPA Firms Cannabis CPA firms face a unique challenge. Their clients—cultivators, processors, and vertically integrated operators—operate under one of the most complex tax environments in the U.S. Because of IRS 280E, cannabis companies cannot deduct most ordinary business expenses, leaving Cost of Goods Sold (COGS) as the only major tax deduction available.
Full Absorption Costing for Cannabis CPA Firms For cannabis CPA firms, one of the most difficult challenges is guiding clients through full absorption costing—the process of assigning both direct and indirect costs to the products being cultivated, processed, and sold. While the concept is straightforward in traditional industries, cannabis introduces layers of complexity that make
