Last Updated: February 16, 2021
A point of sale (POS) describes the point where a client executes the payment for goods or services. Its transaction may occur in person with receipts generated either in print or electronically. Cloud-based systems have developed in recent years and they are becoming increasingly popular among merchants. The system includes any checkout point at a retail store and even QR or barcode scanners from apps on a micro-scale.
It is an essential feature all businesses selling products, whether in a physical store or online. For these reasons, the system is considered not just essential but very essential in streaming businesses. In today’s world, the system is often integrated with other systems, thereby streamlining operations. It can automatically help with merchant transactions and with business data analytics.
Just as illustrated earlier, a point of sale system is made up of hardware and software, working together to process sales and payment transactions at the point of purchase. The system performs all the necessary cash register functions, from checking items by departments to tracking sales, adding taxes, and even generating receipts. There are so many examples of why the software can be a critical success factor to any business, one of the most significant being inventory management. Indeed, to run a successful business, you have to monitor and track sales. You cannot effectively manage inventory if you do not know what clients are buying. Some of the ways the software can help in streamlining your business include; -
• Simple invoicing- the software enables you to record and keep an accurate and reliable record of your invoices. Notably, in every business, there are different types of categories you can have, and it is essential to be able to distinguish them. You may have sale invoices, repair, purchases, rentals, consignments invoices, and other invoice variants, depending on the nature of the transactions involved. Easy invoicing management is vital for a business accounting operation since it provides proof of the sales volumes. Through this arrangement, the software helps streamline your business, which translates to effective business management.
• Better customer management- the system helps document your client's information in the company's structure. This could either be their names, phone numbers, e-mails, or even purchases, among other details. Having this data regarding your customers gives you an accurate overview of your customer groups and the target market. The system can also help in tracking customers for targeted promotions. Arguably, having proper information management enables you to analyze and understand your target market and make better business decisions accordingly.
• Quick payment- A point of sale software facilitates swift payments. In this case, the employee selects the products picked by a customer as the software automatically determines the prices and total costs, therefore eliminating the complexity of a manual approach. Initially, with the system being incorporated into payment processes, waiting time is significantly reduced for customers. Employees can execute transactions more efficiently, thereby improving the business process.
• Better inventory management- With the system in place, it becomes easier to track your inventory. It helps with real-time inventory management and have a clear picture of the number of products sold over a certain period.
Upon receiving your inventory, and if the product is already in your catalog, you scan the items, record the items and their respective quantities in the inventory. In this process, much time is saved compared to the manual tracking process of your list, and the process also minimizes the occurrence of errors which can be a concern with the manual systems.
• Better customer satisfaction and loyalty- With the software in place, it becomes easier to serve many customers by ensuring fast, accurate and efficient services. The combination of these core components of effective customer service ensures that clients become more satisfied and are likely to visit the store more regularly. Basically, with better satisfaction, customers develop loyalty to the store, which could be advantageous for business development and growth as it becomes easier to achieve customer retention.
Through all these ways, among several others such as improved security and enhanced employee management capabilities, better services, improved brand image, time-saving, and increased efficiency, POS helps to streamline your business.