Why Do I Need a Point-of-Sale System?

edralyn
February 7, 2013

Is your business still using a cash register? If you’re not using a point-of-sale (PoS) system, you’re missing out on one of the most powerful tools for improving the efficiency and bottom line of your business. Some shy away from making the change because of the initial investment of time and money—but this is short sighted. These resources could not be spent in any better way. The PoS system gives you information that a cash register simply can’t. Take the long view of your business and look into a point-of-sale system if you’re interested in…

Minimizing errors

One of the biggest problems with an old fashioned cash register system is that it relies too heavily on employee accuracy. By moving to a PoS system, you can avoid costly errors. The system will accurately apply and track coupons, specials, mark downs, and any other temporary pricing change. If your business has multiple locations, you’ll also benefit from consistent pricing from site to site, regardless of who is training the employees. If your business sells products multiple ways—retail, wholesale, and online—you get the additional benefit of eliminating double entry. Your PoS system will be able to accurately apply pricing and information across all types of sales.

Automating repetitive tasks

A PoS system will save a lot of hassle by automating frequently performed tasks. Every business performs these repetitive tasks, whether it’s creating purchase orders to vendors after a client submits an order, or entering a specific set of charges for a service. Automating these tasks buys time—time that can be spent helping more customers check out more quickly, or helping customers on the sales floor. Employees avoid the frustration of repetitive tasks and customers get faster check out. Everyone wins.

Generating reports easily

One of the greatest benefits of a PoS system is its ability to easily and accurately generate reports. Are you wondering if the sale you just ran actually benefitted you, or if your latest ad campaign actually increased revenue? You can quickly look at the reports and know what’s working for your business. You’ll also be able to easily analyze the state of your business on a daily basis—something that is tough to do with manual report generation. One of the most beneficial reports is the inventory report. Because the system will have real time inventory numbers, you’ll avoid “sudden shrink.” With constantly updated inventory numbers and reports, you’ll never have to guess how your inventory is doing—you’ll know.

If you’re still using a cash register, it’s time to upgrade. While the time and money involved is a factor, don’t be deterred. Merchant services providers are there to help you through the process, and thousands of businesses have successfully completed the process. Once it’s implemented, you’ll wonder how you ever held out on making the change for so long.

Author Tony Alvarez writes for Merchant Maverick, where you can find reviews for credit card processors, comparison charts, shopping cart software, as well as processor reviews for companies such as Volusion.