POS What is a POS System? Ultimate Guide By Khaleel Hayes POS 11 comments August 13, 2024 Running an efficient point-of-sale system (POS) is similar to running a manufacturing facility; you have to have all the right machinery, staff, software and scheduling for effective results to meet your desired goals. POS systems streamline all of your needs to ensure your clients are happy and your business is raking in high profits. Compare Top POS System Leaders POS is taking over various businesses, restaurants, shops and more, making it obvious that it isn’t going away any time soon. Globe Newswire predicts the POS system market could reach $34.7 billion by 2025. Are you still unsure about investing in a POS system? SelectHub has you covered with a complete guide including considerations, benefits, standard features, hardware, trends and our picks for the best POS systems. What this Article Covers: What is a POS System (POS)? Purchasing Considerations Primary Benefits Key Features Hardware Notable Trends FAQs Top POS Systems What is a POS System? A point of sale system (POS) is a digital station where consumers pay for products or services in a store or restaurant as a a technological step up from a cash register. Types There are diverse types of systems that serve different purposes and industries. These types include: Mobile: Handle transactions, print receipts, receive signatures and more with mobile POS or mPOS and is also referred to as a sub-category of cloud POS. These systems are apps designed for phones, tablets and other devices, allowing you to use them while you’re out on the sales floor or traveling to different departments. Cloud: Access real-time data, perform quick transactions and locate inventory with cloud POS. It’s simple to use, available on mobile devices and upgrades automatically. Self-Service Kiosk: Enable customers to order and pay for their food, confirm appointments, purchase movie or concert tickets and more with self-service kiosks. McDonald’s, Wal-Mart and Target are examples of companies leveraging these kiosks. Restaurant: Split checks, add tips, merge online and third-party delivery ordering solutions, monitor food inventories, order food, supervise employees and more. Retail: Pick from various colors and sizes, track inventory, accept various transactions, establish a customer database and loyalty programs, create purchase orders and receive thorough sales reporting, among other tools and modules with this system for stores, small businesses and shops. Salon: Obtain and manage appointment calendars, allocate appointment reminders, manage staff, develop memberships and more with this system that caters to salons, spas and other services. Purchasing Considerations Like any solution or system, there are considerations to mull over before making a purchase. These considerations range from how much you’re willing to spend on a platform to the type of business you’re running. How Much Am I Willing to Spend? These systems can run anywhere from a few hundred to thousands of dollars. Establishing a practical budget can guarantee you invest in the right program without extinguishing all of your funds. How Big is My Business? Do you own a modest convenience store or a high-end restaurant? Are you looking to expand your business or remain small? There are scalable solutions that can accommodate growing staff and services. You can also invest in non-scalable applications. Size, as well as industry, is critical in choosing the best solution. What Industry is My POS Serving? Is your business a restaurant, retailer, bar, salon or spa? As aforementioned, several types of POS applications serve various industries. It would not be a wise business move to purchase a salon POS when you own a night bar. What Hardware Do I Need? It’s critical to know what type of POS equipment that you may need, such as touchscreen monitors or tablets, secure cash drawers, barcode scanners, credit card readers and more. You may need additional or spare equipment in the case of a robbery, malfunction or tune-up. What Features Do I Need? Mulling over the right features is also essential. You may need employee management, inventory management, reporting and CRM or you may need other features such as returns, refunds and store credit components, catalogs, item types and multi-warehouse control. Knowing the ideal features that align with your company’s requirements is valuable. Compare Top POS System Leaders Primary Benefits POS platforms offer a wide array of benefits, from increased productivity and greater accuracy to better employee management. Increased Productivity, Greater Accuracy and Real-Time Inventory Employees no longer have to do math in their heads or remember the names and prices of items. A POS application offers thumbnail images and associated fees on a comprehensive touchscreen. There are also barcode scanners that users can leverage to look up and add items to total amounts. Bunching items saves time and boosts productivity because users can check out more customers in less time. These systems also reduce errors and improve accuracy not only for scanning and finding products but also for keeping track of materials. You can scan items instead of manually counting and entering them into the systems, thus ensuring you’re always aware of materials. Better Employee Management Leverage an employee management tool for scheduling, time clocking and sales management. Supervise employees’ performance and reward them if they meet or exceed expectations, which will keep them motivated. You’ll also know which employees need improvement or discharging with in-depth reporting functionalities. In-Depth Reporting and Analysis Upkeep various KPIs such as: Cost of Goods Sales-Through Rates Conversion Rates Gross Margins Sales Per Employees Sales Per Square Foots And more! These reports are generated in easy-to-read formats so you can efficiently analyze and study the numbers, pinpoint positive and negative trends, measure employee performance, gauge monthly, yearly, weekly and daily revenue and more. Most cloud systems permit you to receive real-time data when you’re away from your office. Compare Top POS System Leaders Key Features Like episodes of The Simpsons, no two POS applications are exactly alike. Each system is unique. However, most platforms contain similar modules that streamline inventory management, reporting, employee management and more. Multiple Payment Methods Accept various payment modes including change, bills, checks, credit and debit cards, Apple Pay, Square and more with a paramount multiple payment apparatus. Inventory Management Manage inventory with ease as you scan items with barcode scanners, track inbound or outbound items and more with a practical inventory management function. Some systems even offer additional tools such as vendor purchase orders to track stock for several vendors simultaneously, item types with serial numbers and product variants for multiple styles, sizes and colors. Customer Management Maintaining clients and customer information is quintessential. A customer management apparatus contains a searchable patron database of customer profiles with contact information, shopping trends and the ability to add special notes. This database enables you to establish loyalty programs and special deals. You can also group clients by status such as VIP, regular or employee to initiate unique discounts. Reporting A reporting module enables you to track various KPIs on products, employees, customers, profits and more. Some reporting and analytic tools offer in-depth dashboards that display all of the necessary information in one centralized location with a comprehensive view. Employee Management Ensure you’re running a tight ship with an adequate staff via a robust employee management appliance. Govern attendance, tardies, sales and other critical KPIs to understand who’s exceeding, in need of more training or who needs to be fired. A business is only as productive as its staff. Hardware In addition to purchasing a POS system, you have to invest in specific hardware. Having the proper hardware ensures faster and smoother transaction procedures for higher client satisfaction and quicker revenue. Touchscreen Monitors/Tablets Touchscreen PCs or tablets from Apple or Android are becoming the norm for in-store businesses. They have touch screens for users to touch and find all the information they need quickly. Customers may also select payment methods. They also don’t take that much space and a stand can keep them secure. Receipt Printers For customers who like traditional paper receipts, a receipt printer comes in handy. Plus, receipts are proof for clients who need to make returns on items. Printers come in various sizes and connect to the leading POS platform through a USB plug or Bluetooth capabilities. It also comes with rolls of paper that you can easily replace. Cash Drawers You would think with credit cards, Apple Pay, Square and other methods, paying with cash and coins would be the thing of the past like flip phones, Game Boys and disco music. But there are people, like the elderly, for example, who still pay with cash and coins. So cash drawers are still relevant. A cash drawer enables users to quickly accept money and sift through cash and coins to allocate change. They also hold profits for a specific day, shift or week and are usually emptied around closing time. Credit Card Readers Some call them credit card readers. Some call them pinpads. Others call them POS cash drawers. Whatever you call it, they usually serve the same purpose: they enable you to slide or insert credit or debit cards and read them for transactions. They also come with a number pad to enter PINs if necessary. Sure. Electronic payments and e-wallets are gaining popularity, but it’s still crucial to have credit card readers and cash drawers for the customers who prefer “traditional” payment methods. Barcode Scanners Whether you invest in a handheld or stationary barcode scanner, it streamlines the checkout process. Handheld scanners come in handy when you have to scan bulky items like big boxes of diapers, enormous cases of water or the like that you or customers don’t want to take out of the shopping cart. Handheld scanners also come in handy if you have to perform inventory duties. All you have to do is scan the barcode and it’s automatically counted. Compare Top POS System Leaders Notable Trends In addition to software, it’s also helpful to watch POS industry trends and pick the ones that best suit your business. Implementing new trends enables your business to remain relevant and competitive amongst your customers. Some trends include artificial intelligence (AI), data and analytics, e-wallets and more. Mobility and E-Wallets Consumers are utilizing their smartphones as digital wallets or e-wallets. Users can store debit and credit cards, loyalty cards, coupons and more on their phones instead of taking big bulky wallets with them. POS platforms can quickly process this information and expedite the checkout process tenfold. As aforementioned, though most customers prefer e-payments, some still use physical credit cards, cash and coins for payments. So implement e-payments, credit card readers and cash drawers to accommodate all of your clients. Data and Analytics for Better Business Decisions Like most industries, restaurants, retailers, spas and more that implement POS, they need to gather and understand their data thoroughly. Investing in analytic or business intelligence (BI) tools can ensure you measure the correct KPIs so you can make more-informed business decisions. Allied Market Research estimates that the global big data and business analytics market size will hit $684.1 billion by 2030. Understanding data on revenue, customers, sales and more keeps businesses knowledgeable and ahead of the competition. AI Integration It’s uncanny that AI is taking over our lives with Alexa, Siri and Google giving us real-time information about the weather, appointment scheduling and reminders, traffic reports and more in the palm of our hands or from our living rooms. AI is already overflowing into other industries such as manufacturing, accounting and retail. It can alert you with real-time notifications of fraud and other suspicious activity from employees or customers. It can also provide you with information on profits and give customers suggestions on relevant merchandise based on what they previously purchased. MarketsandMarkets predicts that the global AI market will reach $309.6 billion by 2026. Multi or Omnichannel Commerce According to Statista, the global e-commerce rate is expected to grow by 6.29% by 2025. The pandemic has increased the global e-commerce market tenfold due to lockdowns. Some people had to buy groceries online too. To remain relevant, businesses and retailers should consider having multi- or omnichannel commerce methods such as e-commerce through computers and mobile devices as well as in-store shopping. Restaurants, bookstores and retailers like Wal-Mart, Target, JCPenney’s, Pizza Hut, Barnes and Noble and Red Lobster all implement e-commerce methods to satisfy every customer. Compare Top POS System Leaders FAQs Here are some of the most common questions that arise about POS systems. What is a POS System? A POS system is a program implemented for customers to pay for goods or services in stores, restaurants or other places of business. What are the Different Types of POS Systems? There are various types of systems that serve several industries, such as: Mobile Cloud Self-Service Kiosks Restaurants Retail Salons Bars And more! Will a POS System Make Me Payment Card Industry (PCI) Compliant? Not fully. There are other requirements that you must verify in order to become fully PCI compliant. Some of these requirements include: Leveraging antivirus software Limiting physical access to cardholder information Suitable password security A properly policy of regulations that is chronicled and adhered to by all What’s the Difference Between a POS and Regular Cash Register? Typical POS systems can process and record credit card information, manage employees, provide various marketing tools and offer thorough reporting, among other things. A cash register can store money, report sales made for one day and only take cash payments. Top POS Systems SelectHub’s research and market analyst teams took time to compile a complete roster of the best POS systems in the market. Ensure you’ve answered all of the pricing considerations above and that you have a whole list of features that align with your business needs. Let’s review our list of the top POS systems without further ado. Compare Top POS System Leaders Square POS Square POS is a system that enables you to sell products face-to-face, online, over the phone or on the go. You may sell through Facebook and Instagram, provide curbside pickup, local deliveries and shipping and have a synched online store with no complicated coding necessary. It offers a free version and a plus version with additional features to meet your POS needs. It also has various hardware like registers, magstripe readers, barcode scanners, cash drawers and more. A preview of Square POS’ payment screen. Team Management Enable your staff to clock in and out, make sales and process refunds. Generate and publish work schedules and shifts and send them to the right employees from your phone or email. Paid and unpaid breaks, overtime and more are tracked instantly and automatically sync with Square Payroll. Reporting and Analytics Manage BI tools with Square Dashboard that showcases all transactions and transfers. You may track invoice statuses to know who’s already paid you and who still owes you money. Instead of managing data in hard-to-read spreadsheets, this module offers you simple numbers and charts so you can stay on top of your organization’s overall health. Loyalty Programs Extend loyalty programs to regular customers such as digital punch cards, reward systems, gift cards and more. Leverage Square Dashboard to trace customer data like regular clients, average spending and visits from regular and non-regular patrons, rewarded clients and other KPIs to maintain new and regular clients. Inventory Management Stay on top of your inventory effortlessly. The low-stock alerts extension allocates daily emails that show you which items are low or out of stock, so you’ll know when it’s time for replenishments. You may export inventory reports to printable spreadsheets for review. This module also merges with other inventory programs such as Shopventory, SKU IQ, Stitch Labs and more. Compare Top POS System Leaders Toast Toast offers software and hardware to strengthen revenue, facilitate production and cater to the restaurant sector. It’s a cloud solution that enables users to access information from any location. The starter kit offers cash drawers, receipt printers, tablets and more. A preview of Toast’s timekeeping accessory. Analytics and Reporting Leverage detailed analytics to manage your restaurant’s performance. The location overview extension offers a centralized view of net sales and labor expenditures throughout one or several hundred locations. The sales summary component offers performance reviews over any period while the product mix feature oversees merchandise mixing and detects areas needing improvement. Menu Management Implement menu updates from all restaurant terminals or your mobile device. You also gain access to real-time item countdowns for limited specials to keep your staff and kitchen on the same page. You can also modify, remove or add items on a single menu and changes are recorded for in-house and online menus automatically. Tableside Service Expedite checkout procedures, speed up service and spend more time with patrons with tableside ordering and payments. You may also gather and reply to customer feedback swiftly. Customers can also take Europay, Mastercard and Visa (EMV) or card payments. Payroll and Team Management Instead of manually inputting and verifying employee timesheets, hours and punch data automatically sync with Toast Payroll. You may initiate tip and wage recording. This accessory also provides new employees with the proper HR paperwork in a digital format and enables you to set up profiles for the POS and payroll programs. Compare Top POS System Leaders Shopify Shopify offers advanced inventory tools, joint reporting and personalized staff permissions on one centralized interface. Approximately one million businesses implement Shopify for their sales needs and several brands such as Tokyobike, Soludos, Kinx, Lively and more find it trustworthy. Some of its hardware include a tap and chip card reader, retail stands for iPads, barcode scanners, cash drawers and more. An example of Shopify’s overview dashboard. Staff Management Handle employee performance and manage permissions effortlessly. Add infinite store staff to the point of sale system and assign them with Shopify PIN codes that track register activities and hold employees accountable. This module offers custom role types with unparalleled permissions and restrictions to govern specific responsibilities staff can execute and the information needed to perform the task. Inventory Management Stocky by Shopify permits users to make wise and quick inventory decisions. The transfers extension allows employees to request merchandise transfers throughout locations and easily monitors outbound products. A barcode scanner enables you to reconcile your inventory rapidly. You may also conduct inventory analysis to determine which goods are worth chronicling. Customers Create profiles for new customers automatically to save contact information, write notes and analyze their shopping patterns. You can make phone calls or send emails and text messages directly from the software. Manage a patron’s in-store and online order history to superintend returns, exchanges, recommendations or repeat purchases. Reporting and Analytics Manage various reports and analytics for your store or business. These reports include: Overview Retail Cash Flow Finance Discount Product Cash Tracking And Daily Sales Payments Utilize several payment modules that accommodate customers’ diverse payment methods. This attribute is flexible with partial payments, deposits and layaways. You may also accept two or more payment types in a single transaction – i.e., credit card and cash or several credit cards – with the split tenders extension. Compare Top POS System Leaders Lightspeed Retail Lightspeed Retail is a cloud-based point-of-sale system that offers omnichannel loyalty programs and contactless payments. It also has various hardware kits for iPads, desktop computers and more. A preview of Lightspeed Retail’s inventory module. Multiple Payment Methods Initiate speedy transactions that allow you to swipe, dip or tap credit, debit and gift cards on an EMV-friendly terminal. The payments feature offers a Verifone P400 terminal that has a touchscreen, 24/7 server security to monitor personnel and offers swipe, dip and tap payment techniques. Inventory Management Tackle and trace work orders directly from the system, produce product variations for different sizes, colors and materials and group single items into bundled packages. This platform allows you to import products from more than 3,000 uploaded catalogs and establish custom reorder points, so you’re never entirely out of top-seller goods. You can even dispense employee discounts, draft coupons and promotions and modify prices simultaneously. Customer Management Access free onboarding for new and current clients, execute fast and secure online or in-store checkouts, govern your entire business and financials in one place and sync your online and physical store inventories. You’ll always know what’s in stock and leverage finished purchase histories to inaugurate campaigns. Reporting Operate with interactive real-time dashboards that gauge customer demands, remove dusty inventory items and obtain helpful marketing insights. You may also watch employee performance, including monitoring sales per employee, executing rush hour planning and reviewing average transaction values. Compare Top POS System Leaders QuickBooks POS Lastly, QuickBooks POS caters to retail for both online and physical stores. It provides users with simpleeCommerce integrations, contactless payments, multi-channel inventory management and other modules to streamline processes. They also offer different hardware bundles and individual hardware such as cash drawers, receipt printers, wired barcode scanners, PIN pads and more. An example of QuickBooks POS’ main menu. Multiple Payment Methods Allow customers to choose from various payment methods such as Apple Pay, Google Pay, Samsung Pay and more. You can pick pliable payment plan options with reasonable rates and sync with QuickBooks Desktop to save time and reduce errors automatically. Inventory Management Always know what items are available and what needs reordering for your inventory. Receive instant inventory updates throughout all channels for all orders, sales and returns to prevent overselling. You can track inventory by vendor, department, style, size or color. You may also pinpoint trends with advanced reporting extensions. Additional Features QuickBooks POS offers additional features to streamline your retail needs. These supplementary modules include: Ring Sales: Accept all payment types, obtain thorough customer information to customize offers and promotions and implement wireless barcode scanning for price checking, sales and inventory upkeep. Gift Cards: Create gift cards with your brand to increase revenue and gain new consumers. Compare Top POS System Leaders Final Thoughts Choosing the best POS system is like shopping for a new car. It can become overwhelming if you don’t know what you’re looking for. You have to find a program and compatible accessories that best align with your company’s needs. Which POS system is your top choice and why? Let us know in the comments! Khaleel HayesWhat is a POS System? Ultimate Guide08.13.2024