What is a POS system?

A POS system is a combination of hardware and software that allows businesses to complete purchases, record sales data, manage inventory and employees, and view business performance reports.

Types of POS hardware

POS hardware refers to the physical components needed to conduct the sales transaction. Mobile POS systems are becoming the most common choice for small and midsize businesses, especially those that need additional flexibility in their sales processes. 

These are the most common types of POS hardware:

• Tablet
• Tablet stand
• Cash drawer
• Receipt printer
• Card reader
• Credit card terminal

Depending on your industry and budget, you can integrate additional POS hardware, such as these items:

• Barcode scanners
• Customer display screens
• Caller ID devices
• Self-serve kiosks
• Coin dispensers
• Kitchen display systems
• Kitchen printers
• Digital menu boards
• Scales
• Tablet cases

How does a POS system work?

The basic function of a POS system is to complete sales transactions. However, according to Ali Raza CEO & Founder of MrGeek DMA, data from these transactions can be used for many other business functions. 

What are the key features of a POS system?

When looking for the best POS system for your business, consider a system that has the following features: 

• Purchasing capabilities: Your employees can use a POS system to scan or key in the items that a customer is purchasing, add taxes and calculate the total amount of the sale. The system will then accept payment and generate a receipt.
  
  
  
  
• Sales data recording: A POS system records and stores customer sales data either in the cloud or on a local server, depending on the system you choose.
  
  
  
  
• Inventory tracking and management: You can create a product catalog or menu in the system that you use when you’re ringing up customer orders. The best POS systems also track inventory and automatically update quantities as items are sold. Some have low-stock alerts and purchase order features.
  
  
  
  
• Third-party integration: If you use other business programs to run your business, such as accounting software, payroll and email marketing, you want a POS system that seamlessly integrates with third-party applications. This allows the various applications to share information automatically, eliminating the need to manually download and upload reports, customer lists and other data.
  
  
  
  
• Reporting: The POS system can generate a variety of reports, that help you measure business performance and analyze data for your sales, products, customers and employees.
  
  
  
  
• Loyalty programs and customer management: Most POS systems have basic customer management tools that allow you to record customer information and create customer profiles that you can use for marketing purposes. Loyalty programs are often available as an add-on feature (at an extra cost) or as an integration.
  
  
  
  
• Employee management: A POS system should allow you to restrict employee access and capabilities, and record employee sales. Some include time-tracking and scheduling features, but these features are often add-ons or integrations. 

Although not every feature may apply to your business or industry, you will need purchasing and sales-recording capabilities.

What are the benefits of POS systems?

1. It improves efficiency and reduces costs.

2. It streamlines your inventory management.

3. It helps you manage employee performance and customer relations.

Common Features of POS Systems :

1. Invoicing

POS systems record transactions your store makes as one of their main functions. When waiting lines grow, it’s crucial to have software that allows you to scan and sell products without wasting time, so having such software is beneficial for a retail business.

2. Excellent inventory management

By using a cloud-based point of sale you can keep track of your stock in real-time and know how many goods you own over a day. Simply scan or enter your items when you receive your order, and everything will be saved in the software.

3. Orders from clients and suppliers

It may be necessary for you to place a product on hold for your customers so they can purchase it later. A similar situation occurs when you no longer have stock of an item, but a customer is very interested in purchasing it.

4. Purchases from integrated suppliers

Supplier purchases can also be recorded by POS systems. For good inventory management, suppliers purchases can be made to ensure the smooth operation of the business. To facilitate tracking, the POS system can record any purchases made by the shop.

5. Customizable and consistent reports

You can get reports on a variety of subjects with a POS system, such as accounting, sales, inventory, etc. It summarizes the activities of a company over a given period and gives a sense of how the company has developed over time.

Benefits of POS Systems

• Planning and analytical thinking

• Increases your business’ efficiency

• Facilitates personal client communication

• Managing multiple stores

Types of POS Systems

1. Desktop POS system
2. Mobile POS system
3. Tablet POS systems
4. Self-service kiosk POS systems
5. All-in-one POS systems
6. Industry-based types of POS systems

The benefits of procuring a POS system for your business in this article are:

1. Better Inventory Management
2. Simple Invoicing
3. Quick Payments
4. Better Customer Management
5. Better Customer Orders
6. Better Purchasing / Supplier Order Management
7. Better Customer Experience
8. Better Customer Satisfaction & Loyalty
9. Better Security
10. Better Employee Management
11. Better Promotion Management
12. Better Service
13. Better Company Organization
14. Improve Company Image
15. Regular Updates
16. 24/7 Access to Data
17. Simplification of Operations
18. Personalization of Customer Purchases
19. Increase in Notoriety
20. Fewer Errors
21. Increased Efficiency
22. Time-Saving
23. Cost Reduction
24. Increased Revenues
25. Advanced Reports
26. Multi-Store Functions
27. Technical & Technological Support

Final Thoughts

If you are selecting a POS system for the first time, start writing down the features you need and talk to other business owners who operate in the same field. Inquire about the point-of-sale systems they are using and what they like or don’t like about them.