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Published November 09th, 2016 by

How to Use Point of Sale Software to Help Small Businesses

<img class="alignnone size-full wp-image-15130" src="https://www.crowdreviews.com/blog/wp-content/uploads/2016/12/How-to-Use-Point-of-Sale-Software-to-Help-Small-Businesses1.png" alt="How to Use Point of Sale Software to Help Small Businesses” width=”1024″ height=”450″ />

A lot of businesses utilize a cash register to tender cash and process their transactions. It is essential for efficient business operations. For businesses managing huge cash transactions, it is a good idea to use Point-Of-Sale or POS software instead of cash registers. This will benefit your enterprise because it saves money.

A POS is a system of hardware and software that are networked together. It tracks inventory, sales, and solves a lot of business related problems. However, this system requires a huge investment of money and time. It requires research in selecting a hardware and software for your business. You have to consider its associated costs and available features.

It is possible to achieve considerable benefits and savings from this software system. With the use of an ROI (Return-On-Investment) perspective, it should be able to pay for its expenses in a span of 1-2 years. Generally, POS is a wise investment because it saves you labor hours and it allows you to balance your staff easier. A POS automates tasks that are time-intensive. It also monitors the performance of your business.

Reports generated by the point of sale software systems are critical to the daily management of the business and also in the long-term. POS systems offer ordering reports, sales reports, profit reports, and revenue reports. It offers a whole new perspective to your business.

Simplifies Accounting Processes

Cash registers have been widely used by almost all enterprises. Nowadays, businesses are given better options by replacing cash registers with the point of sale systems. With old-fashioned registers, accountants need to sort receipts manually. In a POS software, there are built-in reports that you can use. It also has an inventory management features that can be used to purchase products and track sellers.

It is also easier to check your past transactions. If you want information on a specific transaction on a particular day, a POS system can provide you with that information with just a click of a button. Imagine how long it would take you to find that piece of information if you are using a cash register.

User errors are greatly reduced with POS devices. There are times when you accidentally hit the wrong key. These devices usually have checks built into them that make sure that information is entered accurately.

Checkout Process Optimization

A cashier stand or a check-out counter is a station or aisle where products or items are transported by individuals for purchasing. Examples of these are department stores and supermarkets. These are usually long counters with moving belts that are equipped with a photocell to stop items once it reaches the end. It may also be a single register at your local store. If using a bar code reader, the cashier scans every product and it automatically totals it.

Barcode scanning significantly speeds up your check-out process. Customers are more satisfied if they won’t be queuing for a long time just to make a purchase. This will also enable you to serve more customers. More customers mean more data will be recorded that can be used to give incentives to your loyal clients.

Reduced Shrinkage and Losses

Some business’ losses come from fraud. It’s sometimes sad to think that your own employees are capable of doing such a thing. This is because employees know how certain processes work. Flaws are sometimes exploited to cover their deceit. With a POS system, every step can be tracked starting from the purchasing of the product up to the process of selling.

This types of data can be used to trace the occurrence of losses. It can also help you locate processes that are flawed so that you can act on it accordingly. You need to plug these holes to be able to lose from external shoplifters.

Purchasing orders is also easier to a point of sale system. This eliminates other ordering processes. The process of ordering can also be automated so that you don’t run out of stocks for your products. There is a real-time tracking for inventory quantities and shrinkage is greatly reduced.

POS systems are always equipped with inventory and receiving functions. Functions like these enable businesses to pinpoint major causes of out-of-stock tendencies and inventory. In general, it makes the overall management of your business easier.

It can also be automated to track down prices that are marked down. It is a good strategy to monitor coupons, promotions, and discounts that are critical to retaining businesses. A point of sale software automatically reconciles and manages short-term discounting.

Efficiency and Customer Satisfaction

Business owners are able to maintain control of their businesses even if they are not physically present. Even if you are away from work, you still have the ability to track performance and volume. This is ideal for instances where you need to focus on your other tasks.

Efficiency is improved in POS systems because it allows your employees to cater to your customers better. Tasks such as reconciling your register and double-checking your inventory for disparities are eliminated with a POS system. The effort is dramatically reduced because there are less paperwork and inventory work. This means you can satisfy your customers at a low cost, thus resulting in higher sales.

The use of a barcode scanner in POS systems makes the check-out process faster. Your loyal customers are also easily recognized and their patronage can be rewarded. Customer data is easily collected through card transactions. This information can be used for possible incentive and advertising programs.

With POS devices, customers’ receipts are more itemized and more informative. Most cash registers only print the price and date, unlike in a POS system which offers more detailed information. It can print information such as the list price, sale price, and item description since it is tied into the system.

Collected sales data can easily be analyzed. This will help you measure an advertising or pricing campaign’s effectiveness. You can detect which items you are short of and its remaining quantity. You will be able to identify items that are high margin and focus on promoting them. Daily revenue can be easily calculated. Analysis of data is critical in forecasting future trends.

Flexibility and Convenience

Workers nowadays find it easier to work with POS devices than traditional cash registers. Today’s generation are more comfortable working technology that is computerized. POS devices offer faster service than cash registers. From the authorization of transaction on a credit card to the printing of the customer’s receipt, it is definitely faster on a POS device.

Most of POS software offer packages with remote access. This means that you can manage your system even if you are on your mobile phone or smartphone. Whenever you are on a day-off or traveling for business, you will still have the ability to monitor your business and respond to urgent concerns immediately.

POS systems also allow your business expansion options. You can add administration computers and registers. In the event that you want to expand your business, you have the option to connect multiple stores online. You can manage all of your locations through a single system.

Software Integration

POS devices have features that allow integration to other services and software. Accounting programs are just one of the types of software that can be integrated into a POS system. Your business’ daily transactions and activities can be easily imported automatically.

The popularity of shopping online is causing most businesses to operate both online and off-line. Established businesses with physical stores are venturing on the web just to keep up to the lucrative online market which maximizes their exposure. There are even businesses who are only exclusive online. Businesses that are operating in both environments must ensure that they are always in sync.

Conclusion

With a POS device, inventory can be seen real time. Even the most expensive registers cannot do this. Most companies are switching to a POS system to completely eliminate the need for a hand count which is prone to errors. POS system’s repair and maintenance costs are relatively lower compared to a cash register.

Companies are slowly replacing cash registers because the repair costs are becoming high. This is because cash register companies are no longer producing parts for it. There may be some but not as many as before. On the other hand, POS devices are now widely used resulting in a high demand for its repair services keeping the cost low.

It is easy to compare point of sale software from traditional cash registers. There are a lot of reasons why it is a good decision to ditch the old-fashioned register. Every business wants increased productivity and lower cost. It will be a good decision for your business in the long run.

Do you want to hire a company that offers the best point of sale software? Make sure to go to CrowdReviews.com and read our point of sale software reviews.

Jeev Trika

Jeev is an executive leader with successful experience building research portals which recommend the best products and services in various highly competitive verticals.

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