Point of Sale Software

Point of Sale (POS) software is a system that can process retail transactions online or via mobile apps on smart devices. A POS system will calculate the amount owed on a sale and provide options for customer payment, invoicing, and receipt. 

POS is the acronym for “Point of Sale”.

A POS system is the hardware and software used to process sales transactions for customers, either in store or online. POS systems work by calculating how much a customer owes on their purchase and then provides payment options. Sales are tracked and customers receive proof of purchase. Essentially, a POS software is a digital cash register. 

A POS at a small business works by enabling sales transactions and customer payments. POS systems can work in store via terminals or online in a digital store as well. POS processes, tracks, and records all sales which makes it easier for small companies to sell products without investing in complex payment processing infrastructure. 

The common features of Point of Sale (POS) software include:

• Sales transaction processing
• Sales tracking and reporting
• Billing and orders
• Inventory management
• Product lookup
• Employee management
• Loyalty programs
• Gift cards
• Returns, credits, and refunds
• User permissions
• Terminals or mobile registers

The purpose of a POS system is to facilitate in-store or online sales transactions with payment processing options and sales tracking tools needed to accept payment from customers.

The main types of POS systems can include:

• Smartphones & tablets
• Terminals
• Mobile POS 
• Card/Chip Readers
• Computer Screens
• Kiosks
• Barcode Scanners
• Printers for Receipts

The benefits of POS software are:

• Easier and more streamlined shopping and payment experience for customers
• Quicker sales transactions
• Improved customer service and experience
• Increased efficiency in monitoring sales and inventory
• Enhanced reporting

Point of Sale (POS) software can be used by all types of online or brick and mortar merchants that need a seamless, cost-effective way to process sales transactions and accept customer payments. However, POS systems are very heavily relied upon in the retail and hospitality industries, to the point that there are POS systems customized to these types of businesses available on the market. 

The challenges with POS software include:

• Security
• Failed transactions or payment issues
• Incorrect reports
• Promotional sales tracking
• Mobility
• Connectivity

The most common problems with small business retail POS systems are:

• Managing inventory accurately
• Utilizing reporting and analytics tools effectively
• Managing employees on the POS system
• Training 
• Choosing the wrong POS system or tools for your business

The disadvantages of POS can include:

• Access or connectivity issues if the POS is dependent on an internet connection to process sales
• Costs for upkeep and maintenance on the POS system
• Expensive upgrades for POS 

You can use the following checklist to help you determine how to buy the best Point of Sale (POS) software for your business:

• Focus on business needs and growth goals driving the decision to get a new or upgraded POS system.
• Plan for data migration, implementation costs, IT involvement, and any downtime that may impact ongoing sales and promotions.
• Make a plan to support user adoption through training.
• Understand the payment processes you’re looking to streamline and improve.
• Don’t skip the product demos offered by POS software vendors to show features and functionality.
• Understand reporting and analytics needs for sales transaction processing and customer payments.

The top trends in Point of Sale software are:

• Mobility
• Integrated loyalty programs and rewards
• Focus on customer experience
• Cloud-based POS