DISPENSARY LOSS PREVENTION 101, Track Every Action and Every Gram with Audit Log, Team Permissions & Cycle Counts

Accountability Drives Profitability

Dispensary security is more than security guards and cameras—it’s about having full visibility into every gram, every transaction, and every adjustment. Shrinkage, unauthorized discounts, and inventory discrepancies can add up quickly, impacting revenue and compliance, and eroding team trust.

That’s why Meadow’s Audit Log, Cycle Counts, and Team Permissions work together to help dispensary owners take full control over their cannabis dispensary security, ensuring accountability, accuracy, and compliance.

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The Overlooked Side of Dispensary Security: Internal Controls

Cannabis retail is heavily regulated, with strict security requirements in place for dispensaries to protect against external theft, including security personnel, surveillance, limited-access areas, and alarms. Many dispensaries even exceed these required security regulations to protect against external theft.

But internal risks—like misplaced inventory, unauthorized price changes, mismanaged discounts and employee theft—aren’t just a concern; they account for the vast majority of dispensary losses, far exceeding external theft.

  • Who changed product pricing without approval?
  • Who applied a 50% discount on a high-ticket item?
  • Why are key compliance settings altered without documentation?
  • Are blind cycle counts being properly conducted to prevent theft and shrinkage?
  • Who made adjustments to inventory?

Without clear tracking and accountability, shrinkage, errors, and theft can spiral out of control. To prevent loss effectively, dispensaries need more than just reactive measures—they need proactive controls that work together seamlessly. That’s why Meadow’s Audit Log, Team Permissions, and Cycle Counts are built into the system at no extra cost, ensuring dispensary owners have full transparency, controlled access, and real-time oversight.

Let’s break down how each tool strengthens security on its own—and how, when combined, they create a comprehensive loss prevention strategy that actually works.

According to a report from MJBiz Daily, 90% of dispensary losses come from employee theft.
Strong internal controls are essential.

How Meadow’s Audit Log Increases Accountability & Prevents Shrinkage

Think of the Audit Log as your digital security system—tracking and recording every significant action within your dispensary’s POS system.

What Can You Track?

Meadow’s Audit Log provides full transparency on who did what, when, and where, including:

Product price changesDiscount creation & editsInventory adjustmentsAdmin access changesCompliance setting updatesCustomer profile modificationsShifts and cash drawer changesEmployee login activity and session detailsBulk inventory modificationsAudit trails of financial transactions

Each log entry captures:

  • What action was performed
  • Who performed the action
  • Exact timestamp (to the second)
  • IP address of where the action was taken
  • A direct link to the affected page

This level of cannabis dispensary security ensures that any unauthorized changes can be quickly identified and corrected—stopping loss before it happens.

Meadow Admin Audit Log

Real-Life Scenario: Catching Unauthorized Price Changes

A dispensary manager notices a high-demand cannabis product was sold at a deep discount. Instead of playing detective, they check the Audit Log:

🔍 They instantly see that an admin applied a manual 50% discount.

🔍 The discount was unauthorized and not part of any scheduled promotion.

🔍 They take corrective action, preventing future revenue loss.

This is how cannabis businesses can increase accountability, improve security measures, and grow a team they trust.


Tighten Controls with Meadow’s Precise Team Permissions

While the Audit Log helps identify who did what, Precise Team Permissions allow dispensary owners to control who has access to sensitive actions in the first place.

By customizing permissions for each team member, dispensary owners can:

Limit access to sensitive actions, like price changes and inventory edits ✔ Ensure budtenders only have the access they need (e.g., processing sales but not modifying inventory) ✔ Allow purchasing managers to edit inventory without giving them full admin privileges ✔ Restrict customer data access to maintain privacy and compliance ✔ Secure financial reports, ensuring only authorized personnel have access ✔ Prevent unauthorized promotions or discount applicationsEnsure only authorized staff can edit compliance settings and tax rates

Suggested Permission Levels for Common Roles

Meadow Dispensary precise Team Permissions
  • Owner: Full permissions.
  • General Manager (GM): Full permissions or permissions tailored to manager duties, including access to products, inventory, shifts, orders, and customer settings.
  • Floor/Shift Manager: Order access, edit order access, customer access, and manager privileges. May also require shift permissions for POS access.
  • Purchasing Manager: Can view and edit inventory, create purchase orders, and adjust inventory levels. Requires edit price permissions if modifying product details.
  • Inventory Manager: Similar to purchasing managers but focused on inventory control and reconciliation.
  • Marketing Manager: Requires marketing permission to access promotions and campaign tools.
  • Front Desk (Customer Intake): Needs customer access to create and edit customer profiles.
  • Budtenders: Order access, edit order access, and customer access to process transactions and manage profiles.
  • Order Fulfillment (Packing): Order access and edit order permissions to mark orders as packed.
  • Delivery Dispatch: Order access, edit order access, and customer access to manage deliveries and driver assignments.
  • Delivery Driver: Requires only order access to view assigned deliveries.
  • Other Roles: Custom permissions can be set based on specific needs, such as limited reporting access for accountants or auditors.

By setting strict access areas, dispensary owners ensure that only authorized personnel can make key changes, significantly reducing operational risks.

💡 Read More: Team Permissions: Streamlining Dispensary Operations with Meadow


Track Every Gram with Cycle Counts

A Cycle Count is a routine check to ensure that the actual physical inventory matches what’s recorded in Meadow. It’s a powerful tool for preventing loss, catching errors early, and maintaining compliance.

Why Cycle Counts Matter

  • Regulatory Compliance – Many states, including California, require dispensaries to complete a full inventory count every 30 days.
  • Loss Prevention – Regular cycle counts reduce shrinkage and make it easier to spot discrepancies before they become costly problems.
  • Better Inventory Accuracy – Keeping inventory counts accurate reduces operational issues, ensuring seamless sales and reporting.
  • Fraud Prevention – Prevents employees from covering up inventory discrepancies or theft by ensuring blind, independent counts.

Best Practices for Cycle Counts

There are different ways to conduct a cycle count, but not all methods are equally effective:

🚫 Printing a list of expected inventory – This allows discrepancies to go unnoticed if staff manually adjust numbers to match expectations.

🚫 Hiding expected quantities from counters – While better, this method still has blind spots, especially if inventory is spread across multiple locations.

Blind Counts (Best Practice) – Assign employees specific sections to count independently without knowing expected quantities. This ensures accuracy and accountability.

💡 Pro Tip: Perform smaller, more frequent cycle counts to reduce labor costs and prevent large inventory discrepancies. Meadow allows dispensaries to conduct cycle counts while remaining open, making the process seamless and efficient without interrupting sales.

Meadow Cycle Counts for better inventory management

Cycle counts help dispensaries track every gram without disrupting sales. In this image, the inventory location is set to 'Retail Floor,' and employees are assigned specific sections to count independently. Blind counts ensure accuracy, accountability, and prevent shrinkage in real time.

How Cycle Counts Work in Meadow

Meadow’s Cycle Count tool streamlines the entire process:

Meadow x LA Kush Dispensary Inventory Management
  1. Select a location to count – Retail floor, back stock, or specific inventory areas.
  2. Conduct a blind count – Employees count without seeing expected quantities, reducing the risk of errors or manipulation.
  3. Use barcode scanning – Quickly scan products to enter quantities accurately.
  4. Submit for review – Managers compare counted totals with Meadow’s recorded inventory, investigating discrepancies as needed.
  5. Resolve conflicts – If there are mismatches, inventory managers can investigate missing products, misplaced stock, or possible shrinkage.
  6. Finalize the count – Once verified, Meadow updates the inventory to reflect accurate quantities.

By implementing regular, structured cycle counts, dispensaries can dramatically reduce shrinkage, improve compliance, and protect their bottom line.


💡 Read More:

Cannabis Recalls Are Rising: Avoid Six-Figure Fines with Cycle Counts

5 Reasons Your Dispensary Inventory is Inaccurate

Cycle Counts for Smarter Dispensary Inventory Management


Combining Audit Log, Cycle Counts & Team Permissions: The Ultimate Loss Prevention Strategy

  • Step 1: Set permissions so employees only have access to what they need.
  • Step 2: Monitor all actions with the Audit Log to catch and correct unauthorized changes.
  • Step 3: Conduct regular Cycle Counts to track every gram and prevent discrepancies.
  • Step 4: Optimize operations by fine-tuning permissions and maintaining controls.

Together, these tools create a powerful internal security system that minimizes financial losses, protects sensitive data, and ensures compliance with industry regulations.

Meadow x Green Earth Woodlands Hills Inventory Management & Cycle Counts


Stronger Dispensary Security Starts Now

The days of blind spots in dispensary operations are over. Meadow’s Audit Log, Team Permissions, and Cycle Counts put you in full control of your dispensary’s security measures, ensuring:

  • Full transparency over every action in your POS
  • Protection against unauthorized changes and shrinkage
  • Controlled access to sensitive business data
  • Stronger compliance and operational efficiency
  • Higher staff accountability and improved operational trust
  • Peace of mind knowing your business is protected from internal risks

Whether you operate a single storefront or multiple locations, these tools help safeguard your business and maximize long-term profitability.

🔎 Ready to take control? Learn more about Meadow’s loss prevention tools today.

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An iPad running Meadow's Point of Sale system