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What Is a Point of Sale (POS) System?

POS Restaurant Software

A point of sale (POS) system is used to record the products or services a customer intends to purchase, add up the items’ cost, calculate tax, accept payment and generate a receipt. It differs from a cash register in that it has advanced features that make it easier for you to manage sales data, inventory, customers and employees. Best POS system 2020 has three parts: software, hardware, and a credit card processor. POS software is a digital technology platform that is cloud-based and local server-based. Many small business ventures are using this software due to its usability, security, adaptability, and affordability.

POS system gives businesses to complete processes of purchases made record sales data and can view business performance reports. The best POS system 2020 can process payments which include processing credit, cash or any other form of payment method your business might want to require. Apart from payments, POS provides you customer management which can keep track of customers and their requirements.

Needs A POS System:

As soon as you begin selling goods or services in person, your business needs a POS system, no matter how small your operation is. A POS system makes the checkout experience easier and faster for both your cashier and your customer, reducing the time it takes to ring up a sale and decreasing human errors such as miscalculations. The POS serves as the central component for your business; it’s the hub where everything—like sales, inventory and customer management—merges together and returns a solution.

POS system comprises software and hardware both components that make running the daily tasks of your business easier and faster. It’s important to understand what POS software options there are and what each has to offer.

Difference Between On-Premise POS and Cloud POS

On-Premise POS and Cloud POS

ON-PREMISE POS:

  • Buyer Installs Software on System after purchasing one or more Licenses
  • Buyer Updates and Maintains Software
  • Require It Personnel for Larger Organizations
  • Requires costly upfront hardware Purchase

CLOUD POS:

  • Buyer Accesses Software on the internet on any device
  • Updates are pushed to the POS
  • 1-2 Individuals required to manage the POS
  • Lower Upfront Cost

Hardware Components of POS System

Hardware Components of POS System

Following are common physical components required to get your POS up and running

Monitor/Tablet: Databases are displayed and enable function such as clock in and clock out the time of employees with viewing sales reports made on daily bases. 

Barcode Scanner: Automates checkout process, just after scanning barcodes product info is added into the checkout total. Barcode scanners can also integrate with inventory management systems that will be able to adjust stock levels automatically.

Receipt printer: Email and text receipts may be gaining popularity, but paper receipts remain essential for providing customers with a quick snapshot of their purchase or returns.

Cash drawer: It may fade away in years to come, but cash is still king. Until then, you’ll need a secure place to store cash for transactions. Another benefit of cash: there are no associated credit card fees.

Key Features of a POS System: What to Look for When Buying

Many operations in a retail store can be overly tedious and resource exhaustive. With the right POS system, retailers can simplify crucial daily business operations with greater proficiency.

Your POS system should ideally be able to:

  • Generate detailed sales reports (based on the product, hour, employee, total cost of items sold, total retail amount, net profit, profit percentage, gross margin)
  • Provide quick snapshots and charts on your store’s sales performance

Your POS system should enable you to:

  • Scan and count products digitally
  • Manage your stock by creating product variations (size, color)
  • Identify pieces of inventory with a unique serial number
  • Track inventory levels across multiple locations
  • Enable seamless ordering such as automatically setting custom reorders of best-sellers
  • Consolidating purchases and orders in one order

Your POS system should give you the ability to:

  • Add employees to your system
  • Create and modify schedules for employees based on forecasted activity
  • Email schedules to employees
  • Track employees’ hours weekly and overtime
  • Analyze who your top performers are

If you’re choosing a Best POS system 2020 for the first time, start making a list of features you must have and talk to fellow business owners who are operating in a similar space. Ask what POS systems they’re using and what they like, or not like about them.

Once you start talking to vendors, be sure to ask questions that demand definitive answers.

Next Steps in Buying a Best POS system 2020:

1. Research the most popular retail POS systems. 

2. Complete a retail software questionnaire. 

3. Read reviews from fellow business owners. 

Once you’ve come up with a shortlist of potential POS systems, check out what businesses like yours are saying about them. Finding out whether real people are satisfied should enable you to make an informed buying decision.



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