Be the term POS (point of sale) we refer to the capturing of customer payment info and other important data at any physical location where items and services are purchased and sold.
We typically use a variety of devices including cash registers, computers, magnetic card readers, barcode scanners, or any combination of these for capturing a POS transaction.
A POS system helps us with the following:
- It is possible to adjust your purchasing levels appropriately by analyzing the sales data and also figuring out how well the items on your shelves actually sell.
- You can also maintain a sales history so as to adjust the buying decisions for any seasonal purchasing trend.
- It is likewise possible to improve the pricing accuracy by integrating credit card authorization capability plus bar-code scanners with the POS system.
Lots of well-known POS software systems are available at present which will allow you to use add-on gadgets at the checkout stations including barcode scanners, electronic cash drawers, invoice or receipt printers, credit card readers, and so on.
In most cases, these POS packages include integrated accounting modules such as accounts payable, accounts receivable, general ledger, purchasing, as well as inventory control systems. In a nutshell, you can easily monitor the cash flow for your business using a competent point of sale system.
Essential Features of a POS System:
- Simplicity of usage
One of the most significant highlights of this software is its easy-to-use graphical interface which allows us to enter sales information accurately.
Most of the machines make it possible to enter the inventory codes either automatically or manually using a bar-code scanner. These systems call up the standard price or the sales price after the inventory code has been entered successfully, and then the prices are going to be computed in multiple quantities while providing a running total.
We can also enter sales manually whenever required while using many of these systems which enable us to search for any inventory code according to a manufacturing code, a partial merchandise number, a description or a vendor.
Most of the POS systems out there provide us with several ways to monitor pricing such as the percentage of cost, add-on amounts, margin percentage as well as custom formulas.
For instance, it is possible to set up more than one price for every single item in case volume discounts are provided.
3. Updating product info
These POS systems are going to update the inventory automatically along with the accounts receivable records whenever a sale is entered.
In retail, one needs to control the cash receipts carefully so as to avoid any theft. The majority of the POS systems out there offer the facility of audit trails which will help you to trace any issues easily.
- Sales tracking options
Not all businesses will get paid in the same manner. For instance, service or repair outlets usually keep the invoices open till the work has been completed, and therefore, they require a system which will enable them to put sales on hold.
A loan calculator can come of use to you in case you€™re selling expensive items while allowing installment purchases. Moreover, a system which has the ability to handle sales, as well as rentals, can prove to be useful in case you are offering rent-to-own products.
Multiple tax rates can be supported by many of these POS systems on the market. You will find this to be helpful in case you are running a mail order business and are required to deal with taxes for multiple states.
It is important for you to control your business efficiently, and probably the best way to do this will be to use these POS systems thanks to their innovative reporting features.
The sales data can be sliced and diced in many different ways so as to figure out exactly what items are selling best at any particular time, and it will likewise help us to understand what promotions are working successfully and also when to modify the seasonal promotions.
Reporting capabilities are available in the POS programs including sales, costs, as well as profits by the salesperson, by individual inventory products, or by the category for the particular day, month or year.
It will also be possible to create multiple formats for accounting statements, invoices as well as price tags. The additional reports consist of inventory management plus day-end cash reconciliation worksheets.
Make it a point to figure out which particular point of sale system satisfies your requirements by examining several of those packages simultaneously.