What Is a POS Register? How It Differs From Cash Register
When it comes to choosing a cash register or POS system for your business, it’s important to understand the difference between the two. A POS register is a great option for businesses that need more than just a simple way to accept payments. What is a POS register? This article tells you everything you need to know about POS and cash registers including their difference.
I remember when I first started my business, I had no idea what a POS register was and whether or not I needed one. After doing some research, I realized that a POS system would be perfect for my needs. Not only did it provide me with a more efficient way to process transactions, but it also allowed me to keep track of inventory and customers’ orders.
If you’re considering investing in a POS register for your business, make sure you do your research so you can choose the right system for your needs!
What is a POS Register?
A point-of-sale system is a mechanism with which retailers can process sales.
A point of sale system, or “POS”, is an electronic system that records sales, tracks inventory, and performs other business functions. A normal register can do the same, but a more advanced, electronic version can record sales and more detailed information about each transaction.
A POS may be comprised of a few components: hardware, software, and peripherals that work together in order to process sales, track your inventory, and manage your accounts. A basic setup includes a touch screen, a card reader, and a computer.
They became common in the ’80s and ’90s in retail stores.
The global market for POS systems was worth $36.86 billion in 2013, with 34% of that revenue coming from retail.
The POS system has gradually become more intricate, with many terminals now linking with other retail-orientated software programs for tasks such as inventory tracking, bookkeeping, and warehouse management.
Some CRMs, like Salesforce, are powerful enough to handle retail sales, inventory management, and customer relationship management.
POS systems are key for businesses that sell through multiple channels. By tracking and syncing data across multiple store locations, warehouses, and/or fulfillment centers, POS systems help keep businesses organized and efficient.
The centralized location for data allows retailers to keep track of different sales channels and stores through a single platform.
According to 2015 research from Boston Retail Partners, 663% more stores will be using a single e-commerce platform in 2019.
Point of sale systems can do more than just process payments. They can also handle inventory, employee management, customer tracking, and more.
A point of sale (POS) system is a great addition to any retail shop as it helps increase business efficiency, offers customer rewards, provides data for better decision making, and can be accessed from anywhere.
Steps you need to take in order to buy a point of sale system
1. First, define your needs. Look back at your notes to see what your core business problems are.
2. Figure out what equipment you’ll need.
This also includes devices such as a scale, a scanner, a receipt printer, and more.
3. Decide on your budget.
With a traditional point of sale system, you’re likely to need to pay for the initial setup but may not have to worry about monthly fees. On the other hand, with mobile POS systems, you may pay a monthly subscription but won’t have any initial setup fees.
4. Get referrals from other business owners in your network or from software that you use (like accounting software).
When you’re looking for the best software for your business, it’s always a good idea to check out what others have to say about your options. Capterra, Product Hunt, and Merchant Maverick are all great places to get started.
5. See it work.
If you’re interested in seeing a POS system in action, be sure to check out the demo videos on various websites. Once you’ve narrowed down your choices, it’s a good idea to request a live demo so you can ask more questions and get a feel for how the system works.
ensure that you have the correct setup
To ensure you get the most out of a point of sale (POS), it’s important to set it up properly. This includes creating templates for receipts, automating certain processes, and setting workflow rules.
7. Make the most out of your POS systems.
You’ve done the hard work of setting yourself up for success, so now it’s time to put that effort to use. You can do this!
In our business, we use a POS system to administer transactions. This has been a great upgrade for us, as it has allowed us to take advantage of features such as inventory management and customer loyalty programs.
Cash register vs. POS: What are the differences?
On the surface, both traditional registers and modern POS systems have the same purpose, which is to ring up sales. But their distinctions go much deeper than that.
Consider the following tips:
Features and functionality
A cash drawer can help you keep track of the money you have, and it can also ensure that your sales are accurately recorded. Some registers can also be customized for your state’s sales tax, and some can also provide you with some basic reporting. Having a register can help make running your shop more efficient!
A POS (point of sale) system is an all-in-one solution that allows you to do all of the above, and more.
A point of sale (POS) system is a great tool for managing your store’s inventory, collecting and storing customer information, running a customer loyalty program, and running analytics on your sales and profits. You can also create and execute promotional campaigns with it.
Portability and flexibility
POS systems, on the other hand, can be used on different types of devices. For example, you can use a POS system on an iPad, which is much more portable than a cash register machine. You can also use a POS system on a laptop, which is more flexible since you can take it anywhere you want.
But a point of sale system can be run on different devices like Macs, iPads, and PCs, so your check-out experience can be as mobile or as robust as you want it to be.
A POS system is a great way to manage sales, whether you’re behind a large cash wrap or on the go.
Integrations
Most POS systems are only able to connect to your payment processing system.
You can further extend the capabilities of the software by integrating your point of sale system with other apps, like accounting, marketing, and payment processing, which can help your business run more smoothly.
Price
If you’re looking for a cheap way to process payments, then you may want to consider a register. Cash register machines usually range from $100-$500.
On the other hand, a point of sale system can cost $1,000 in annual licensing fees, as well as the cost of the computer or tablet on which it runs.
While a POS may cost a bit more, the features it offers can help you save time and allow you to focus on growing your business.
When you’re able to fully utilize the features of your point of sale solution, it more than makes up for the cost.
