Retailers handle various transactions daily, so it’s key for those businesses to be equipped with the necessary hardware and software to smoothly, seamlessly, and quickly handle large volumes of daily transactions. But which transaction-processing solution is best for your business? Let’s explore the differences between cash registers and POS systems, and how the latter can help you reach your sales goals.
What is a POS system?
Unlike a traditional cash register that performs basic operations (such as recording daily sales transactions, storing money and giving change), a point of sale (POS) system is a feature-filled mechanism with advanced software and hardware that helps in the efficient running of the day-to-day business operations. For instance, in addition to performing all the functions of a cash register, a POS system:
- Accepts a wide array of payment methods, such as gift cards and online payments (traditional cash registers can only accept cash and ACH)
- Comes with built-in credit card processing and integration features (cash registers may require a separate merchant account in order to process card payments)
- Generates CRM, inventory, and marketing reports
- Has inventory management features
- Is designed to provide basic to advanced customer service
The Difference Between Cash Registers and POS Systems
Invented in 1897, cash register machines have helped retailers track their daily sales transactions for record-keeping. Apart from recording transactions, users can also utilize the machine to generate receipts, calculate taxes, and track sales.
On the other hand, a POS system is computerized software that enables a retail store to not only record incoming and outgoing monies, but it also carries out other various functions, such as consumer and employee management, inventory monitoring, and consumer relations. A computerized POS cash register is usually connected to another setup of cash registers, comprising of several stations that process sales and accept payments. Furthermore, the digital POS system comes with other tools that allow retailers to integrate the system with different facets of the business, such as accounting.
Benefits of a POS System
More and more retail store managers are beginning to see the importance of investing in a POS system for some of these following benefits:
Ever gone to a store and after you have finished shopping, you have to wait in a long line for your turn at the cashier? Imagine how that impacts sales. When your cashiers have the necessary tools to handle their work, things run more efficiently. It also makes their job easier and effortless, thus reducing the number of employees. With everything available at a glance, checkout is lightning-quick.
Timely and Accurate Records
A computerized POS system offers accurate, sophisticated, and detailed sales reports. By using this system, you can analyze the sales data from different perspectives, including items sold within a particular timeframe, promotions and vouchers, and even by-store analysis if you run a chain of shops. Besides, it also offers timely records of your inventory, with an intuitive system that will alert you when the stock goes below your set threshold.
As mentioned above, a POS system can be integrated with accounting software to streamline your bookkeeping practices. With traditional accounting systems, CPAs have to deal with lists of financial records, which can take a considerable amount of time to go through. But when you are equipped with a POS system, you can use it to import financial records from your accounting software for easy analysis.
Learn More about POS Systems
Are you looking for the best POS systems provider? You can trust Great Lakes Computer Corporation to help you install, service, and manage your POS system. We have seasoned professionals who have worked with these systems for years. We can also provide timely technical support to troubleshoot any issues so that you experience smooth operations in your sales department. Give us a call and we can take care of your POS system.