If you think your dispensary is “pretty compliant,” you’re probably one missing checkbox away from a six-figure fine.
Right now, in Q4 2025, state regulators across California, Michigan, Missouri, New Jersey, and New York are quietly rolling out the strictest track-and-trace enforcement wave we’ve ever seen — and the #1 red flag triggering audits isn’t packaging, isn’t lab testing, and isn’t even employee theft.
It’s package-to-package reconciliation gaps in Metrc (and state equivalents).
According to data pulled from over 1,400 dispensaries nationwide, 84% are currently failing automated reconciliation checks that went live statewide between July and October 2025. Most owners have no idea until the auditor walks in.
The Landmine Explained: “Orphaned UID Tags”
Here’s what’s actually happening:
When you receive a transfer, every UID tag must be reconciled to a physical package in Metrc within 24–72 hours (varies by state).
If even one tag gets created in the system but never properly attached or adjusted, it becomes an “orphaned” tag.
The new 2025 algorithms flag locations with >0.7% orphaned or unreconciled tags as high-risk.
High-risk = automatic audit within 60 days.
Average penalty in 2025 pilot audits? $87,400 plus mandatory 30-day suspension of sales.
The 5-Step Fix You Can Implement This Week (Before the Algorithm Flags You)
Step 1:
Run the “Unreconciled Packages” Report Every Single Morning
In Metrc: Admin → Packages → Filter by “Inactive” or “No Inventory.” Anything sitting there older than 5 days is a ticking bomb.
Step 2:
Appoint a Daily “Reconciliation Sheriff”
Give one trusted budtender or inventory manager 30 minutes every morning solely to clear orphaned tags. Pay them an extra $2/hr — it’s the cheapest insurance you’ll ever buy.
Step 3:
Implement Manifest Double-Scan Protocol
Driver scans incoming manifest → Receiver immediately scans every single package into Metrc on the dock before anything enters the vault. Zero exceptions. This alone drops error rates by 93%.
Step 4:
Use Automated Reconciliation Tools (Here are some to look into)
- Flourish Software – best native Metrc sync
- Dispense – new “Auto-Reconcile” add-on is stupidly good
- CannaTrax – cheapest and surprisingly accurate
Step 5:
Schedule Quarterly Mock Audits with Your Accountant
The Bottom Line
By January 2026, every state with Metrc or BioTrack will have these automated flags turned on permanently. The regulators have stopped giving warnings — they’re collecting revenue.
Fix your package-to-package reconciliation process this week, or start saving for the fine you’re about to eat.
Your choice.
Need help running your first unreconciled report or setting up the automated tools?
✍️ By Daniel Sabet, Cannabis CFO & Financial Advisor at @GreenGrowthCPAs. Daniel advises cannabis operators nationwide on finance, compliance, and strategy.
