Point of sale is a place where the customer pays for the goods purchased along with the sales tax. Merchants use point of sale (POS) systems to payments with the help of computers or any other electronic device like mobile phones. POS systems include both hardware and software elements which help in easing the process of receiving payments. The POS system is like a multitasker. It not only carries out basic functions like conducting transactions, adding taxes, creating receipts, and tracking sales but also carries out other complex tasks like inventory management, cost of labor, etc.
ADVANTAGES OF A POS SYSTEM
After acquiring a POS system, merchants can enjoy the given benefits:-
- IMPROVED ACCURACY- Without a POS system, a cashier has to remember the price of each and every item and at the time of checkout he/she has to bill it. Due to human error, there can be chances that the bill is not formulated accurately. The POS system makes the task accurate, easy, and faster. All that needs to be done by the cashier is to scan and all the details will appear on the screen.
- SIMPLE REPORTING- POS systems provide reports real quick. These reports can be used by you to analyze the business position and accordingly make future advancements.
- STOCK MANAGEMENT- The software helps in the management of the inventory given that you have entered how much stock you have. It also accounts for all the returns and replacements placed and adjusts inventory appropriately.
- SPEEDY SERVICE- In today’s time, consumers do not wait for long. They don’t wish to stand in queues. POS software helps in processing the payments faster which keeps the customers satisfied.
- EMPLOYEE IDENTIFICATION- The software also helps merchants in assessing their employees’ performance. It tells which employees are efficient and who needs more training.
TYPES OF POS SYSTEMS
There are mainly 2 types of point of sale (POS) systems, namely, on-premise POS system and cloud-based POS system.
- ON-PREMISE POS SYSTEM- These softwares are installed on a monitor or computer. They are usually installed at places where there are network or connectivity problems. These systems also need frequent upgrades in terms of technology and software licenses. You cannot access your data from any place. It is only available on which the data is stored.
- CLOUD-BASED POS SYSTEM- This system is not installed on hardware like a computer but on a remote server. It needs constant internet connectivity without that it cannot work. You can access this system from anywhere in the world. You can also set it to auto-updates which will save your time. You can also choose who all have the access to your data.
There are a few subcategory POS also available. They are mobile POS, retail POS, and multichannel POS.
HOW TO CHOOSE A POS SYSTEM
- DEFINE BUSINESS NEEDS- The first thing to be kept in mind is that what all is required in your business and find a system which has the most number of relevant features.
- TYPE OF SYSTEM- You need to decide the type of system you need whether it is an on-premises or cloud-based system. You may also choose from the subcategories of POS systems available like mobile POS etc.
- BUDGET- Depending upon your budget, you must choose a POS system for your business.
- CUSTOMER SERVICE- You should check the customer service of the POS system you are planning to purchase. It is a technical thing and you may require assistance at times.