As a small business owner, you might be considering a POS (point of sale) system to help streamline transactions and better keep track of your inventory. But with so many options on the market, it can be hard to know which system is right for your business.
You want to make sure you choose a POS system that will be easy for both you and your employees to use and has the features you need to run your business smoothly. So we’ve put together this guide on POS systems. We’ll cover the different POS systems and their features to help you make the best decision for your business.
What Is POS?
Point-of-sale (POS) is where a customer completes a transaction with a merchant. A POS system is used to record the sale and collect payment from the customer. You can use this system in physical stores, restaurants, dry cleaning, and other businesses.
A POS system typically includes three important variables which are:
- Hardware, such as a cash register or terminal; allows you to process the sale and accept payments.
- POS Software: provides the ability to track inventory, customers, and sales; it can also include features like loyalty programs, marketing campaigns, or gift cards. EPOS software is one POS software designed for businesses with an eCommerce website and a physical store.
- Payments: The POS system is used to collect and store client transactions. This data may be used to handle payments made in cash, credit cards, or via mobile devices and route the money to your bank account after each transaction.
When Do You Require A POS System?
When starting with a small business, you can get by without a POS system. Instead, you can use a simple cash register or an Excel spreadsheet to track your sales. But soon, you will find that as your business grows, you need a more sophisticated system to help you keep track of inventory, customers, and sales.
A POS system can do more than accept and record sales transactions. It can also track inventory, manage customer data, and generate reports. This data can help you make the best decisions about your business.
Important Components of a POS System
There are several important components of a POS system. These include the following:
- Cash Drawer: If your business is cash-based, this is where you store the money you have collected from sales.
- Receipt Printer: This component prints out receipts for each customer transaction. Some POS systems allow you to email or text receipts to customers.
- Credit Card Readers: If you accept credit cards, you’ll need a card reader compatible with your POS system. Secure and EMV-compliant credit card readers are required. Non-compliant merchants may suffer significant financial losses as a result of fraud liability.
- Barcode Scanners: This component automates the process and allows you to scan barcodes during checkout. You may also use barcode readers with inventory management systems to automatically alter stock levels based on bar code scans.
Important Guidelines When Choosing a POS System
After you have determined that you need a POS system, you’ll need to choose the right one for your business. It’s important to understand what component features are necessary for your business to help you decide. Here are some important components to look for in a POS system:
Costs: The initial setup and payment processing costs (for example, monthly or per-transaction fees) should be considered.
Fees: Aside from costs, you must also consider POS software fees, equipment/rental fees, and other monthly or annual charges.
PCI compliance: specifically how you handle payments, connect your systems, and safeguard consumer data
Mobility and flexibility: this includes the ability to accept chip or PIN cards, NFC payments such as Apple Pay and other contactless cards, and whether you can connect wirelessly
POS system features: choose the features that fit your business needs.
The Benefits of Using a POS System for Credit Card Payments
If your retail business isn’t using a POS system to process credit card payments, you’re missing out on some important benefits. The best POS system for retail store can help you save time and money by streamlining the credit card payment process. It helps manage customer data and generate reports. In addition, it will help you keep track of your inventory to alert you when you are running low on a product. Finally, a POS system will allow you to run your business more efficiently.
If you have more than one location, POS systems can help you manage all your locations from one central system with their multilocation management features. You can keep track of sales, inventory, and customers across all locations.
Factors To Consider When Choosing Best POS System for Small Businesses
If you have decided that a POS system is right for your small business, don’t forget to consider these factors to select the best POS system for your small business:
Price & Subscription Fee: The upfront cost and monthly subscription fee are important factors to consider when choosing a POS system.
Payment processing options: You should consider what type of payments you want to accept and make sure the POS system can process those types of payments.
Features: You should consider your needs and ensure the POS system has those features.
Ease of use: The POS system should be easy to use to train your employees quickly and efficiently.
A POS system can save you time and money by helping you keep track of your inventory, customers, and sales. Axcess IT can help you choose the right POS system for your business. If you’re ready to purchase a POS system, contact us today for a free consultation.