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How to Set Up a POS System in 5 Easy Steps!

To many people, how to set up a pos system for their business can seem like a daunting task, but it doesn’t have to be! Follow these five easy steps on how to set up a pos system and you’ll have your system up and running in no time. 

What Is a POS System Cha-ching?

When you hear that cha-ching! ring tone, you can’t help but smile. You wish you could hear it all day long!

A POS system is a computerized network that streamlines the transactions between a customer and a business. It’s composed of several hardware components, including a monitor, cash drawer, receipt printer, barcode scanner, and credit card terminal. The software component of a POS system tracks inventory levels, sales data, and customer information. A POS system can also be integrated with other business applications, such as accounting and customer relationship management (CRM) software.

A point of sale (POS) system is an essential component for most retail businesses. The market for these systems is expected to grow by 3.5% annually, so the time to invest is now.

In the past, a point of sale (POS) system was an expensive investment that only large companies could afford. Today, however, there are many different types of point-of-sale (POS) systems that can fit the needs of any small business.

How Does POS Work?

When creating a point of sales (POS) system for your store, you’ll need to make sure it caters to your specific business needs. For instance, here’s one example of a basic transaction: when customers check out at the cash register.

When a customer is ready to checkout, the cashier will scan each item’s barcode. Once all items have been scanned, the cashier will select the payment method and complete the sale. A receipt can be printed or emailed to the customer.

The scanning process is when the item gets taken out of the inventory and it is recorded in different sales reports depending on what the item is.

Reports are compiled daily that include all customers, orders, discounts, and sales data. This information is used to generate the X and Z reports, shift summary, transaction report, and analytics dashboard.

POS systems have completely changed the game for merchants, giving them access to data and insights that were previously unattainable. No longer do they have to spend days trying to figure out what strategies work best – they can now get this information at the touch of a button. This has revolutionized the way businesses operate and has madePOS systems an essential part of any successful operation.

That, my friend, is the power of point of sale.

POS System Features


Hi! The touchscreen menu at the till is really easy to use and ensures seamless interactions. Just like the functions and layout will decide how fast it can be accomplished.

You want to ensure that your employees are able to use the touch screen registers quickly and efficiently, without making any mistakes. Additionally, you may want to consider using mobile registers to provide an even faster checkout experience.

Perhaps a front-facing screen would be beneficial for your customers.

Payment options

A point of sale (POS) system is designed to handle multiple payment methods such as cash and credit. This allows the customer to decide their preferred payment methods.

What are your payment options? You can pay with cash, credit, or a combination of the two. You can also use a gift card to partially pay for your purchase.

If you’re looking for a checkout system that can handle multiple payment methods, like down payments, layaways, and discounts, then you’ll want one that can manage split transactions.

It’s important to have a returns policy that is easy to follow and that caters to multiple options. For instance, you can offer a cash or credit card refund, a credit for an exchange, or a gift card. If you are running a food establishment, your POS should also have tip and gratuity capabilities.

Inventory management

The Inventory Management Module gives you complete visibility over all your stock, from individual items to the lot level. It also tracks all transactions, from purchase to sale, and helps you manage your warehouse.

A CRM system can help you track inventory, customize taxes, create customized prices, send you notifications, and compile reports on sales.

Warehouse and supply chain management tools help you manage inventory, shipments, and orders.

Employee management

The Employee Management Module allows you to keep track of the number of employees you have, their hours worked, and their performance.

Setting up specific user roles with individual logins will help you to control what features your staff members have access to. By assigning unique usernames and passwords, you can monitor their working hours and their performance. This can help you to manage your staff levels and sales performances more efficiently.

Track your employees’ performance by keeping track of certain KPIs, such as average transaction price, number of sales, and customer interactions.

Customer management and loyalty functions

Knowing who your valuable customers are allows you to effectively create loyalty programs for them.

Offer your loyal customers discounts and rewards, or give them free gifts. You can also attract new business by offering them a gift card.

Organizing events for your clients is a great way to create stronger, more emotional connections with them. This is key to building strong relationships.

Reports, analytics, accounting

With analytics, you can gain valuable insight into your business. By leveraging this data, you can make informed decisions, increase efficiency, and grow your business.

Keep tabs on your store’s performance in real-time with cloud POS snapshots or seasonal trends and forecasts. Make smart, data-driven decisions with reports that help you understand what’s selling, what’s not, and when to restock.

Reports allow you to gain transparency into your business, so you can better plan your promotions and sales. You can also personalize your approach to customers, which will boost customer loyalty. Finally, employee reports are fair and promote a transparent workplace.

Transparency and fairness are important aspects of any work environment.

Having the ability to customize employee reporting is an added bonus. The accounting modules are integrated, so there’s no need to waste time transferring data.

Location management

If your business has multiple locations, then you’ll need to consider how you’ll handle your inventory, sales and staff.

If you have multiple store locations, you’ll need to carefully manage stock transfers and keep track of inventory levels at each location. POS software can help by separating stock levels for the same item at different locations. Location-based analytics can also be useful in managing a multi-location business.

Hardware and internet

When shopping for a point-of-sale system, make sure it’s compatible with your hardware. Some small-business cloud-POS systems are iPad or Android-based, while others use a regular computer, tablet, or phone.

If you’ve invested in other hardware, such as a kitchen or bar-code reader, make sure it’s compatible with your POS system. Also, make sure your internet connection is reliable and fast.

Alternatively, you could look into using a hybrid solution.

How to set up a POS system successfully

A point of sale (POS) system is the combination of software and hardware that businesses use to process sales.

Pick the right POS hardware

It is important to use the right type of point of sale (POS) equipment. This equipment is designed specifically to work with certain software programs. You can’t just use any piece of hardware and expect it to be compatible with your software program.

When developing point of sales systems, developers often work with a specific set of hardware and protocols.

Because of this, many software programs offer bundles that combine the necessary hardware and software together.

Open source phone software has to be compatible with whatever OS the phone is running.

You need to decide which phones will be stationary or mobile and get the right number of each.

POS hardware components

The type and number of equipment needed varies by company.

The type and number of equipment needed varies depending on the business, but can include iPads or tablets, a touch screen or display, a scanner, a receipt printer, an electronic drawer, a label printer, a card reader, and a weight-scale for weighed products.

If you want to build a system for your own restaurants, also consider:

When building a restaurant point of sales (POS), you need to include all of the essential equipment. This includes a kitchen display screen, a mobile order device, a receipt printer, a bar code scanner, and a customer screen. With all of these parts, your establishment will be set up for success.

Some retail point of sales (POS) systems include:

  • Barcode scanners
  • Receipt printers
  • Credit card readers
  • Customer-facing displays
  • Routers

POS System Technology

If you’re set on building your own POS system, we can discuss the technology involved.

From a technical standpoint, there are four major types of point of sale (POS) system:

When it comes to choosing a POS system for your business, you’ll first need to decide which type of system will best suit your needs. On-premise POS systems are installed directly on your company’s servers and computers. Cloud-based POS systems are hosted by a third-party provider and accessed via an internet connection. Mobile POS systems run on handheld devices, such as smartphones or tablets. Self-service kiosks are standalone machines that allow customers to place orders and make payments without the assistance of a cashier.

On-premise POS systems

Traditional point of sale (POS) solutions are those big, clunky computers you see in retail stores and restaurant kitchens.

Before cloud computing, all software was stored locally on servers within a company’s building.

While it was beneficial to have all of the features in one place, it was inconvenient if you wanted to access information or make changes from a remote location.

Other drawbacks were the high cost of purchasing the system, the need to pay for updates, and the lack of ongoing support.

Cloud-based POS solutions

Cloud-based POS systems are more secure and reliable than legacy POS systems. Cloud-based POS systems use an off-site server to store data, which makes them more secure. Legacy POS systems store data on the same server as the POS system, which makes them less secure.

These systems are especially useful for small businesses with more than one location.

Cloud-based POS systems are ideal for small businesses with multiple locations. They are affordable and provide good value for money. They are also modern and easily integratable with other industry-standard software. In addition, cloud-based POS systems come with better support than their on-premise counterparts.

A potential disadvantage of a 100% cloud-based system is that, if your internet connection is unreliable, you may need to use a hybrid softwarecloud system.

Mobile POS (mPOS) systems

Cloud-based mobile point-of-sale (POS) systems are different than traditional, non-cloud based, or ‘legacy’, point of sale (POS) systems that use fixed terminals.

Retailers use mPOS systems to streamline the checkout process, freeing up staff to attend to other tasks. In restaurants, mPOS can be used for tableside ordering and payment processing. They are also handy for event sales (markets, festivals) and food trucks.

The beauty in mobile POS (mPOS) is in its mobility, and the reliability of its hardware.

Self-service kiosks

Self-service kiosks are popping up everywhere, from movie theaters to restaurants to department stores. These allow customers to order their own food and pay without interacting with a cashier.


There you have it! Five easy steps on how to set up a pos system for your business. Just remember to do your research, gather all the necessary hardware, and configure your software according to your preferences. Then you’ll be ready to start ringing up sales in no time!