Many people, especially those who grew before the advent of technology as we know it today, still do not understand what a point of sale (POS) system is. What they often think of are those enormous cash registers they had then at their local corner store. These days, almost every business has switched to the more modern form of a POS system. Just like how we replaced the telephone for the smartphone of today which is mobile with a lot of features, so have businesses ditched those old cash registers for more efficient POS systems.
For a business to compete in today’s world, it needs a POS system, no matter the kind of business or if it is new or has existed for years. Every business needs a POS system. In today’s post, we would be looking at all about POS systems and why your business truly needs one.
POS means ‘point of sale’ and this is where the final transaction of goods is conducted, that is, it is at this point that a buyer pays for what they have bought. A POS system is a network of both software and hardware that manage your sales transactions. A modern-day POS system allows the person to pay with either cash, credit card, or any other new mode of payment, like near field communication (NFC). But the modern-day POS system allows for more than just payment as it also allows businesses to manage their inventory, track sales, and more. All of these make running a business easier these days.
There are many types of POS systems that are used today and a business can decide to use whichever they find more convenient or helpful.
This was the first type of POS system and it is still very much in use today. It runs on software that stored things on-site, that is within the business premises, through a closed, internal network. Most times the hardware came with its software.
This kind of system is good for the fact that it used a local network connection, meaning that it did not rely on the internet to function. Another good thing was the software came loaded with a lot of features so you do not have to buy or download more things. The software also came in very sturdy hardware that could withstand a lot.
It also has a few drawbacks, like the fact that it is quite expensive to get. Also, upgrading it is not entirely easy and has to be done manually. Unlike more sophisticated POS systems these days, a traditional POS system can only be accessed on-site.
These are POS systems that store all their information on the cloud, which could be a server or any other location that could only be accessed through the internet.
The major advantage of this kind of system is that it uses the internet, meaning that information could be accessed from anywhere by authorized access with the internet, rather than on-site. Another good thing about it is the fact that you would always receive timely updates with better features. It is also cheaper to manage.
But being too reliant on the internet means that when the internet goes down, the system cannot be used. Also, it does not pack as many features as the traditional POS systems.
This is a POS system with all the good sides of a traditional POS system and a cloud-based POS system combined. One can access information remotely at any time of the day or choose to access things from another location with the help of the internet and make changes that would reflect on the system. This is the one many people tend to go for because it offers them more with almost no restrictions.
A smartphone or tablet allows us to do more than just make calls or watch videos online as it can also be converted to a POS system. With the help of software that can be downloaded from the virtual store in the phone or tablet, whether iOS or Android, one can begin to conduct business on their phone, using it as a POS system.
While this kind of system offers convenience and also results in more accurate transactions, it is only on as long as the phone has a battery and it may not have some very important features like your regular POS software.