What is a point of sale system? If you ask a retail business owner, a restaurant owner or a retailer, chances are they will answer it’s a “system”. A computer system that does most of the computing work for them. It is where most of their transactions happen.
Point of sale system or simple POS is a computer software or application if you will. Its main job is to record payments from your customers for goods or services that you offered to them.
POS does not seem to be doing a difficult job. Why would a business need it?
Well, a POS system does not just record sales. It goes way more than that. A generic POS system should be able to display daily/weekly/monthly sales reports, stock count report, how many customers paid in cash or did card transactions and a lot more. POS gives business owners a thorough insight which can lead to an efficient business-making decision.
POS systems enable a business to record all of its transactions which will make those records visible later on as reports. Small businesses can start with just a single POS system while the usual setup is POS terminals are linked to a network and every transaction is saved in a single database.
Okaaaay. What consists of a POS system?
The usual hardware setup of a POS system includes a touchscreen monitor, a cash drawer, receipt printer and a barcode. Of course, the software that makes up the POS system, POS.
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Generally, the retail and hospitality businesses are the industries which are most in need of a POS system.
There is no “one size fits all” type of POS. Every type of businesses has their own set of requirements. A restaurant requires table set up with standing order feature and must have the capability of customizing menus while a Salon needs an appointment scheduling feature to cater their clients. A grocery store would need the feature of offering promos and discounts. Some would also require loyalty program that keeps points of their regular customers.
Common types of Point of Sale systems:
In this day of age, if a business is dealing with customers that sell goods and accepts payments, POS is almost mandatory. Cash register simply won’t be enough anymore especially since the market has grown competitive. Small businesses of the same setup shop anywhere.
I think I’m getting the idea now but as a business owner why exactly do I need POS?
Let’s give you the impactful benefits of having a POS system:
If you’re a business owner or about to start one, you should now know that you’ll be dealing with a lot of numbers. Mathematics, my friend. You would want to know how your business is going obviously. No matter how good you are with your math, you’ll be exhausted crunching numbers for sometimes more than once in a day. This is one of the strengths of a POS system. With just a few clicks, Viola! The numbers are in front of you.
Assuming that your business is doing well and you deal with a lot of customers on a daily basis. Life’s good, right? It is but it can be better if the report you’re getting is accurate. A manual setup dealing with customers left and right is prone to error and mistakes.
This is not discussed openly a lot but with a POS system, you get to track your sales on point. With the stock counting and the daily sales report, you would know if your cashiers are handing out the correct amount of sales or somebody’s been pocketing profits. While a POS system cannot prevent theft but it can help greatly by detecting it through sales pattern.
Sure, it’s great to have an employee who knows the price of each and every product you sell but what happens if he/she forgets during a middle of a transaction? With a POS system, you don’t have to worry because the prices are set in the system and your employees don’t need to play the guessing game.
The terminals are linked in a single network and communicating with each other. If a stock is on a critical level, some POS systems send a notification to the purchasing or storekeeper preventing out of stock issues.
Faster and Efficient Transactions
Every transaction gets recorded from who ordered the product to who sold the product. ES-POS logs every transaction done into the system giving you complete admin mode and track your POS users’ movement.
If your core business is selling products or offering services, you should start considering getting a POS system. Adopting to a POS system in the early stage greatly helps because, at the end of the day, it will give you a better insight of how your business is doing. You can then focus on something else like marketing or advertising your business.
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