POS systems can streamline your company’s operations as well as provide many money saving benefits. As POS systems are customizable to fit different industry models, not all of the benefits mentioned below are applicable to all business types. That being said, companies cite different reasons for utilizing a POS system, but mostly reference the following five reasons:
Improved Communication: POS equipment cuts down on the amount of errors that may occur as a result of poor communication or misunderstandings. This is particularly true with restaurants wherein a waiter may poorly communicate an order to the kitchen staff resulting in a wrong order. A POS system reduces these errors of communication while also more effectively promoting communicating between different parts of a company.
Bookkeeping: POS systems organize bookkeeping and inventory records by having a standardized organization. A POS system will track daily sales as well as organize them all in a user friendly manner. Certain businesses, such as restaurants, find this organized daily sales record particularly useful when tabulating tips for employee tax information. Aside from just the sale numbers, the POS system also tracks which employee preformed the sale and which items or services were sold.
Information Reports: A POS system can store information as well as perform various reporting functions. These reporting functions allow business owners to print lists organized by category, time period, sale amount, date, or employee. These reports are helpful when determining which employees are making the most sales, and how quickly particular items sell. An item’s sale history will help plan sale events, and when to order more inventory.
POS systems can help business owners track the effectiveness of a coupon or special offer. If a clothing store offers a 20% off one item for the month of June coupon, retail POS systems can track if people bought one item with the coupon as well as several full priced items. This tracking will help a business decide if this coupon increased sales revenue overall and if it is worth doing again in the future.
The POS software also allows businesses to track customers' spending habits. For example, POS software can track clients’ zip codes and then you can decide where to target promotions to increase sales based on your customers’ spending habits.
Savings: The main reason companies use POS systems are for the cost savings benefits. A POS system has the potential to decrease the amount of discounts or free merchandise employees give away because of the increased inventory monitoring. This tracking allows business owners to become aware of any discrepancies quicker and thereby fix the problem sooner. Further, the POS information reports help a business owner target customers and increase overall sales. Decreasing inventory mistakes and increasing sales can increase overall profits.
Additional Benefits: The benefits listed above are dependent on industry type. A vendor will be able to illustrate additional features that may be unique to your industry.
POS systems have the potential to significantly benefit a business, however conducting research on how POS systems are used within your industry will give your company a better idea as to if a POS system is right.
Monique L. Myers is a writer, surf instructor and an art enthusiast based in San Diego, California. She writes extensively for Resource Nation and VoIP Service, both online resources that provide expert advice on purchasing and outsourcing decisions for small business owners and entrepreneurs.
