Small businesses, naturally, have less time and resources, which mean investing in a Point of Sales system can help them reach customers, enhance their marketing strategies and manage employees and inventory. Although the traditional cash registers played a significant role a few years ago, they are not up to the requirements of the modern day market anymore. The modern, innovative point of sales systems have quickly filled the slack by offering a whole lot of flexibility and efficiency required in today’s business environment.

What is a Point of Sales system or software?

A Point of Sale system is an aggregation of software and hardware that allows businesses or retailers to process sales efficiently and fast. The hardware is mainly composed of a main computer terminal and accessories called peripherals. Examples of peripherals include receipt printers, card machines, and barcode readers. All these peripherals tether to the central terminal via wireless technology or through a cable. The software is the processing unit. It can be customized according to the nature of your business. You have the option to set it up in the clouds or on to the computer terminal. The advantage of cloud setup is that you are able to see your sales processing activities wherever you are, in real time.

A point of sales system can do the heavy lifting for you. It can track your sales, manage your inventory and track your customers. It can also compute sophisticated math for you. For instance, it can tell you which of your employees’ sales the most, plus carry out your accounting functions.

How does a point of sale system work?

A basic POS system consists of a server, accompanied by one or multiple terminals. The number of terminals hinges on how many checkout stations a business has. Other components of the main server include a keyboard for entering data into the system, credit or debit card swiper, receipt printers, and pin pad. Some businesses prefer using a bar code reader, as it expedites information input process. The newest technology consists of a touch screen that offers a more seamless experience. Large-scale entities implement the mobile technology incorporated in tablet, iPads, iPhones, and androids.

The hardware components are used together with the POS software. The POS software is responsible for storing information entered into the system using the keyboard or barcode reader. The information will then be managed within the Point of Sale System database.

Apart from inventory management, sales tracking, and customer tracking, the Point of Sales system can be integrated into accounting systems to generate extensive financial reports. That means you are able to monitor all cash and credit/debit transactions every day through the POS system. A POS system comes along with multiple features and endless customization, which makes it a sound investment for your business.