SFMS-Guide to New POS Systems
Greg Blackman / SFMS-Guide to New POS Systems
Point of sale (POS) systems can help your business increase efficiency and reduce theft and fraud. These systems automate the sales process, tracking all transactions in a computer database. POS systems decrease your record of inventory as products are sold. This enables you to keep a more accurate accounting of your inventory and identify discrepancies between the computer record and the inventory on the shelves. The reporting feature included in POS systems also allows you to generate cumulative and comparative reports that can help you identify problems before they impact your bottom line. Recent technological advances have enabled mobile POS systems that use hand-held devices to complete sales transactions where the customer is shopping, rather than requiring customers to wait in line at the registers.
Benefits
Point of sale systems keep your sales information organized and let you complete transactions with ease. These systems also record all of the information about your sales so that you can analyze the data and use it to make wise business decisions.
Accurate sales information
Your point of sale system tracks all sales and inventory, so you know exactly how much money your customers have spent at your store and exactly what they bought. This accurate data allows you to keep popular products stocked. Your customers will also appreciate the higher accuracy in transactions, especially since it speeds up checkout and allows them to leave the store more quickly.
Prevent fraud and theft
Because a POS system logs all transactions, you can keep an eye on employees to help prevent theft. A point of sale system might also help you identify return fraud by showing you when store returns increase rapidly. In addition, the existence of digital receipts created by your POS system lets you verify that an item being returned was actually purchased on the day the customer claims.
Simplifies bookkeeping
You can use your point of sale system to help you prepare payroll statements and profit and loss statements. It can also keep track of sales tax. Because of its ability to track all of your company’s financial data, the use of a POS system saves you money when it comes to bookkeeping.
Mobile POS advantages
One of the newest advances in POS technology is the invention of mobile POS systems. These devices, which take the form of rugged mobile devices, tablet computers or consumer style hand-held devices, allow you to carry out sales without bringing the customer back to a centralized register or checkout lane. They are gradually replacing fixed terminals as the transaction system of choice. Between 2010 and 2015, the market for rugged hand-held POS systems is expected to rise by nearly 30 percent and sales of non-rugged POS devices are expected to rise about 400 percent, according to the IHL Group.
Pitfalls
Point of sale systems provides numerous benefits to businesses. However, there are just as many disadvantages to using POS systems, which should be considered prior to investing time and money.
Expensive
POS systems are integrated packages of software and hardware. Although they are designed to provide years of service, it can be prohibitively expensive to purchase and install a point of sale system. Additionally, upgrading the system may require purchasing new software or hardware depending on how the system was designed.
Subject to computer malfunctions
A point of sale system is a computer program. It has the same weaknesses as other computer programs. The POS system can malfunction and corrupt the data stored on it. If you do not have a backup copy of your files, you could lose all of that information. Additionally, computer hackers could breach your security system and steal money or cause other problems for your business.
Internet connection required
Some POS systems require an Internet connection so information can be transmitted between the computers connected to the system. Any interruption in the Internet connection could cause the system to malfunction and disrupt the flow of your business.
Pricing
According to FirstResearch.com, the retail sector has approximately 1 million outlets in the United States, which accounts for over 4 trillion dollars in revenue each year. Many of these stores use point-of-sale terminals to make transactions smooth and quick, maximizing profits.
Conclusion
Installing a POS system can significantly change your company’s sales process. These systems automate the sales process by tracking inventory, creating electronic sales records, processing payments, and generating printed receipts. The databases that point of sale systems use make it easier to do your bookkeeping and print reports that present sales data for analysis. The reporting feature can help you identify trending products so you can increase inventory and issues of concern so you can fix the situation before they impact profitability. POS systems can be expensive, however, and implementation typically requires the purchase of a proprietary software and hardware package. You may also need an Internet connection to use a POS system. If your Internet service goes down, it can bring your sales operation to a halt.
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