Point of sale (POS) systems are an all-in-one solution that allows you to charge your customers for goods or services. It also accepts payments and creates a receipt or invoice with an intuitive combination of hardware, software, and customer support resources. POS systems also adjust your inventory to account for the purchases automatically. Incorporating your business with a point-of-sale system increases your flexibility, your presence, market reach, and the level of convenience you can offer your customers and, as a result, your overall profit.
Do I need a POS system?
You can benefit from a point-of-sale system if you sell goods and services. Even the best spreadsheet for tracking sales and inventory requires substantial updates and maintenance to provide an accurate business operation. With a POS system, you can complete the same complex tasks. It includes running reports at the push of a button, and collecting data via this system allows you to make informed business decisions. Moreover, this investment may improve the image of your business to your potential customers. However, you decide to start old school with a traditional cash register. It would be challenging on your part to keep up with the pace of modern business. It also requires a separate machine if you plan to take credit cards.
Functions of a POS system
A POS system offers essential business benefits. The software lets you analyze your sales data, adjust your inventory accordingly, and develop a sales history to streamline your seasonal ordering process. It also integrates barcode scanners and credit card authorization functionality. The best type of POS system for the needs of your specific business requires careful consideration of these factors.
Software interface: Choose a system with an intuitive, user-friendly design that makes it easy to access functions and features.
Sales information entry: Do you prefer manually typing in an item number or using a barcode scanner to call up the item automatically? Many POS systems allow you to do both.
Pricing options: If you often run promotions, you can find a system that allows you to account for a percentage discount on specific items automatically.
Inventory tracking: Some systems automatically update your accounts receivable and inventory records with every customer transaction. You may want to choose software that provides an alert when you’re running low on a specific item, making it easy to reorder on time.
Sales tracking: Depending on your business, you may need a system that can automatically invoice customers for payments over time or one that handles both sales and rentals.
Security features: Look for a system to provide automatic audits in a discrepancy.
Reporting capabilities: You should ideally be able to quickly parse data to see your sales, costs, and profits displayed for each inventory item or category of items, by a salesperson or by time.
Industry-specific features: Depending on the small business you own, you may want to consider a POS system tailored to your specific industry. Examples include systems designed for nail salons, auto repair shops, and restaurants.
Support for multiple locations: If you run a business that needs a POS system at more than one location, look for a vendor that supports numerous sites without charging additional fees.
Add-on services: Some vendors support different marketing features integrated with the POS system, such as email sales templates. These are convenient for businesses seeking a comprehensive sales and marketing solution. Integrating employee management systems allows for seamless staff scheduling, timekeeping, and payroll.
POS Hardware
The POS hardware you select depends on whether you need a mobile option. If you prefer a fixed location for your system, choose a PC or network of PCs to house your POS. Moreover, You can select an Android tablet or an Apple iPad if mobile is best. Although the iPad has long been the gold standard for tablets, Android is the POS preference of many business owners because of the affordability of the pills, the range of available sizes and features, and durability. These tablets also have more flexibility in terms of peripheral connections.
Furthermore, PC-based POS systems are connected to a server that houses your customer and sales data. Android and Apple tablets run on cloud-based systems, which update this data in real-time. You can augment your POS hardware with other peripherals based on your needs, including but not limited to cash drawers, display systems, scanners, and receipt printers.
Individuals who run a fully mobile business will need a fully mobile POS system. This includes both credit card swiping and chip functionality, a means of printing receipts, and the ability to work offline if you’re in an area without wireless internet or a strong data connection.
POS Software
You can choose a POS software package installed on your PC or a cloud-based model that you can access from any device with an internet connection. Although the latter is a much more convenient solution, cloud software may carry a monthly service fee. For this reason, you might hear the term SaaS–Software as a Service–to describe a cloud-based POS system. Keep in mind that traditional POS software is a less modern solution. Because a POS system is an investment in the
technological future of your business, you should consider the industry standard not just right now but five years from now.
Another benefit of cloud-based POS is the frequency of software updates. Traditional POS systems are typically updated annually, and this substantial update may require significant system downtime. With cloud-based systems, you’ll get frequent updates that won’t interfere with the seamless operation of your business, improving your software’s responsiveness and ease of use.
All POS systems should adhere to PCI compliance guidelines. These security standards, known as the Payment Card Industry Data Security Standards, are required for any business with a merchant ID that collects credit card payments. At a minimum, your online security system must have the following 12 elements.
A firewall that prevents unauthorized access to consumer data.
Secure, unique passwords for all systems; using the vendor’s default password is prohibited.
Protection of consumer credit card data stored within the system.
Encrypted transmission of consumer credit card data.
Use of regularly updated antivirus software.
Restriction of employee access to consumer credit card data on a need-to-know basis.
Unique IDs for all staff members that use the system.
Restricted physical access to credit card data.
Monitoring of all online data access.
Regular testing of security processes and procedures.
Maintenance and employee awareness of a written security policy.
For best results, choose a POS system with built-in PCI compliance to avoid hefty fines and likely compromise of your customer’s sensitive information. Talk to us now to learn more.
