What Is a Point of Sale (POS) System? Oct 28, 2019

A point of sale system, or POS, is the place where your customer makes a payment for products or services at your store. Simply put, every time a customer makes a purchase at your store, they’re completing a point of sale transaction.

The POS serves as the central component for your business; its the hub where everythinglike sales, inventory and customer managementmerges.

As evident as the benefits of a POS system are, we found that 56 percent of single-store retailers are still not using one. Instead, we found, many are still using a combination of manual methods, cash registers, QuickBooks and Excel for bookkeeping.

So why have retailers not taken that step to POS yet? To begin with, implementing new technologyespecially technology thats central to your business processcan be scary and overwhelming. Retailers need to consider the negative consequences of failing to have a POS in place.

Software Components of a POS System

Every POS system comprises of software and hardware components that make running the daily operations of your business easier and faster. Its important to understand what POS software options there are and what each have to offer.

Flexibility is key. Ensure your POS vendor works with the payment processor/gateway of your choice, so that you can control cost. If you’re already using applications important to your business, make sure the POS can integrate with them seamlessly, so that you can continue using them.

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