There are many businesses when which use "POS" systems. These point of sales software options can turn any computer terminal into a cash register. In the past before computers, running a business took even more work for basic things.
Cash registers handled money, but more technical details like inventory management required long days of micromanagement.
Modern point of sale systems instead assist in the process. They help a business with their inventory management by managing it digitally every time a purchase is made! This allows business owners to spend their time working on and expanding their business instead of tediously counting items in the backroom.
Advantages of Using POS Systems
As mentioned above, the biggest advantage of using a POS system is the inventory management aspect. As inventory is taken in or created, it’s added to the POS system. As it’s sold off, it will automatically be removed from the inventory. This allows a business owner or worker to quickly look up and determine inventory.
POS systems become even better when a business has multiple locations. The POS systems will intertwine with each other, and keep track of inventory throughout the entire business. Taking it a step farther, POS systems can schedule movement of inventory throughout the business network to ensure that one location doesn’t run out of anything.
In addition to offering up great inventory management and sales, point of sale systems are great for using purchase data. Analytics aspects of point of sales systems will instead determine trends and help a business predict their future needs with forecasting and reports.
Other Uses of POS Systems
In addition to managing inventory, POS systems work really well for businesses that like to use discounts or markdowns. They will automatically calculate the price at checkout and keep track so that the discounts can be analyzed later to see if they are benefitting the business.
In addition POS systems work really well with marketing programs. They can track how the promotions or campaigns are actually performing. This data is invaluable to a business in the future.
Who Uses POS Systems?
Really any business that functions as a retail outlet will need a POS system of some type. Retail businesses need to be highly aware of their inventory to prepare for re-ordering or to give customers updates. In addition, most POS systems will also integrate with accounting software to make sure that everything is working together in harmony.
In addition to the retail sector, there are many other types of businesses which benefit from using POS systems. Restaurants commonly do, hotels as well. Really any business that sells an item or a service can take advantage of a POS system.
Necessary Hardware and Equipment
In order to set up a point of sale system, different companies use different hardware configurations. Larger businesses typically will use full desktop computers, with customized or exclusive software suites attached to them. Unless it’s a single store setup, they will need to be connected to the internet through either wired or wireless connections. If it’s a wireless connection, a proper modem/router setup will be needed.
Many smaller companies don’t use the full computer setup. Many have moved to point of sale systems that are instead operated through tablet computers or even on phones. These point of sale systems will typically have higher transaction costs, but they are mobile and convenient. The downside to these is that they don’t attach well to cash drawers. This means that transactions have to be made through card systems only.