In today’s business environment, Point of Sale (POS) software systems are perhaps the most important components of business automation. point of sale systems are staples of the modern retail industry, although the hospitality and restaurant industries have also become major adopters of POS technology.
The arrival of POS systems in the mid 70s signaled the beginning of a new era in the business marketplace. POS systems are among the most innovative business technology products. The commercial use of sophisticated information technology processes and protocols such as Local Area Networks, synchronized backups, peer to peer communication, and client-server modeling started when retail giants Dillard’s and Pathmark installed Point of sale systems developed by IBM. Touchscreen technology was adopted by POS system developers at the early stages of retail implementation. Self-checkout systems were implemented after certain standards in hardware, communication protocols, and barcode scanning had been established.
Typical point of sale systems nowadays are capable of controlling critical aspects of your business such as inventory tracking, business reporting, accounting, and gathering information. For many small business owners and operators, a POS system is the key to consolidating and integrating most aspects of the day-to-day business operations.
Retail customers these days demand more efficiency from the businesses they patronize. A modern store must be able to quickly ring up a sale. This is true for any type of store, be it a kiosk, a brick-and-mortar establishment, catalog sales over the phone, or an Internet storefront. Increased business competition calls for a better understanding of your customers. Point of sale systems can help you store important customer profiles, purchase history, and spending habits.
Vendor integration is another helpful feature found in many POS systems. Thanks to standards in point of sale software and barcode applications, vendors can provide their customers with preloaded catalogs that can be loaded into certain data folders used by the Point of sale system. This is a convenient time-saving feature that comes in handy when creating purchase orders or when looking up inventory items since item information can be pulled up by simply scanning the barcode or entering a part number.
Business owners can trust their POS systems to provide them with instant data reports that show how their business is doing at any time. Most POS systems also interact with popular business accounting software packages. This interaction is crucial for businesses that operate on commercial loans and lines of credit, and it makes it easier for accountants to look into the company’s books. Businesses that profit from a mix of retail and service operations may be subject to different levels of tax liability and reporting. To this extent, POS software packages are the best option to properly account for the flow of income derived by the business.
Credit card processing is also made easier by point of sale systems. It is recommended that businesses either set up a POS systems before choosing a merchant account and gateway or check with their POS vendor as to which credit card processing solution to use. Many credit card processors are constantly reviewing their capabilities of interaction with different POS systems. In fact, partnerships between POS vendors and credit card processors are common.
While POS systems offer a long list of benefits to business owners, it is important to note that not every POS software package is a perfect fit for any business. As there are many different POS system options, it is up to the business owner to shop around and physically test the system prior to purchase and implementation.