What is it?
In business parlance, the term “point of sale” (or “POS”) describes the terminal where transactions are completed. This is the point in time when a business deal is finalised. The hardware and software that make up a POS system allow for far more than just the completion of a transaction.
A point-of-sale (POS) system allows you to centralise and streamline many administrative tasks, including customer service, inventory management, and financial reporting. POS systems allow you to run your business with complete autonomy by centralising all of your crucial data in one place.
How can a Point of Sale System help you?
A point-of-sale (POS) system offers several benefits for every firm that decides to implement it. You’ll be able to focus more on serving clients and expanding your business if you have an efficient system in place for handling finances, personnel, and reporting.
As a society, we’ve gone a long way from the days of using antiquated cash registers that could only process cash transactions and spat out paper receipts. These days, point-of-sale (POS) systems are comprehensive sales solutions, equipped with user-friendly technology that can process a wide variety of payment types. How, therefore, might a point-of-sale system improve your company?
History of Point of Sale System
A cash register was the simplest kind of a point of sale system only a few decades ago. In fact, the early point-of-sale terminals wouldn’t “know” how much things cost. Traditionally, cash register prices were entered by hand, with the use of price tickets.
After receiving the payment, the cashier would deposit the funds and issue the buyer a receipt. The paper till roll may be the only record of a transaction in some circumstances.
Point-of-sale (POS) systems have become increasingly computerised over the years, with the product information now being stored on a server.
As a rule, they would have an integrated barcode reader to eliminate the need for human data entry of prices and electronic storage of transaction information. Things are a lot more high tech now than they were back then. Some stores may still employ the aforementioned methods, but most have upgraded to more modern cloud-based POS systems that save customer information in an accessible online format.
All up-to-date POS systems consist of a frontend interface for use at the point of sale and a backend (also known as a backoffice or dashboard) for use in conducting administrative and analytical tasks in the background.
The frontend interface is used by the workers processing the transactions, often on a touchscreen monitor or tablet screen. The backend can be accessed in a separate browser or app window on the same or a different device.
When it comes to computerised POS systems, on-site POS software was formerly the norm; however, cloud-based or hybrid systems relying on both internet and local hosting are increasingly more widespread. Installing and maintaining on-premises point-of-sale software can be costly. One of the main advantages of cloud-based systems is the lower cost (often a fixed monthly fee) and greater flexibility in terms of compatibility with other applications.
Finally, there might be a wide range in the functionality and structure of POS apps. There are specialised POS programmes that cater to the demands of various industries. So that customers may place their orders at their tables before being seated, restaurants, for instance, require a table arrangement to which orders can be attached, and may desire a self-service menu interface. This is only one of many features available in dedicated restaurant POS software.
The daily operations and future expansion of your firm are both affected by the point-of-sale (POS) system you select. After all, the system will be utilised by you and your employees on a daily basis.
For this reason, you should not rush through your homework; rather, you should take your time and ensure that you have a clear understanding of your business’s requirements and objectives before you begin.