Business

How to Select the Best Suited Point of Sale System (POS) for Your Business

You are on the right track for considering getting a Point of Sale (POS) system for your business. With the evolution in technology, payment systems have been modeled in a way that they can be used anywhere. That is just what a POS does – it allows your customers to pay for goods and services without leaving your store, probably, to look for a nearby ATM.

Although there are different types of Point of Sale (POS) systems out there, you don’t want to make the mistake of buying one that doesn’t work for your business. So, in this article, we guide you on how to select the best POS machine for processing payments for your business.

1.    Do You Need a Point of Sale (POS) Machine?

The first thing you want to consider is whether you need the machine in the first place. As much as payment technology is evolving, some businesses might not have a need yet for a POS.

Here are some instances that can prompt you to acquire a Point of Sale (POS) machine:

  • When you want to accept in-person payments, i.e., payments made immediately after making a purchase.
  • Your business needs a POS if you want to track sales, especially when using a POS that is equipped to provide that kind of data.
  • The POS system is needed if your business is considering accepting debit and credit card-enabled payments.

2.    Understand how the System Works

It doesn’t make sense to acquire something you don’t know how it works. When it comes to running a small business, every change matters a lot and can either make or mar the success of the business.

Do you know how a POS system works? Here are some tips to get you started:

Automated Payment Function

This is the primary function of the POS system – to automate payments. Take an instance to be when a customer wants to pay $100 for purchased goods. Rather than paying cash or withdrawing money from an Automated Teller Machine (ATM), the customer can simply pull out his or her debit or credit card, enter the amount to pay and the card’s pin. The payment will be processed in a matter of seconds.

Inventory Management

The Point of Sale (POS) system may also help your business to track its inventory. This can be done by checking the products or goods that were purchased the most and check the same against the total number of products at the last check.

Sales Data

Some POS systems have been equipped with real-time finance-related tracking features. With this, the business owner can keep records of the:

  • Gross margin
  • Net profit margin

3.    What do You Need the System for?

What are the needs for which you want to buy the Point of Sale (POS) system? In addition to payment processing, the system can do a lot of things, including:

  • Customer and inventory management
  • Data storage
  • Employee management
  • Online ordering

4.    Software vs. Hardware POS: Which Should You go for?

There are two major kinds of Point of Sale (POS) systems. These are software-based and hardware-based POS systems. Which should you buy for your business operations?

Software-Based POS System

The software-based POS system is designed to be a digital program or online system that aids in the system’s operations. The software also plays a role in the management of employees, sales, and tracking inventory.

There are different kinds of Point of Sale (POS) systems that are designed to function as software. They include:

Self-Service POS Software

This type of POS software is used by business owners who don’t have enough employees to oversee the sales process. So, the system is deployed to allow the buyers or customers to process the payments themselves.

Mobile POS Software

This is another POS software that is ideal for small and medium businesses. The primary function is for enabling payments on both smartphones and tablets.

Terminal POS Software

This is the opposite of the Mobile POS software. This Point of Sale (POS) system is used in larger business establishments. It also has additional features, such as:

  • Tracking employees’ activities
  • Enabling multiple, large transactions across different payment locations.
  • Inventory tracking and management

Further Reading:

Hardware-Based POS System

The hardware-based POS system can be used physically. The two major types are:

  • Point of Sale (POS) Terminals
  • Printers

The rule of thumb is to make sure that the hardware-based POS system accepts most of the payment options supported by your business. This includes:

  • Credit and debit cards
  • Gift cards
  • Mobile payments

Final Thoughts: Your Business Needs a POS System, only if it Needs it

A Point of Sale (POS) system can simplify and facilitate payments coming in and going out of your business. Yet, you must make sure that your business really needs it. How do you do that? It is by choosing an industry-specific system. That is, acquiring a POS system that fits into your business landscape. For example, you can get systems designed for financial transactions in a hotel, a department store, a grocery store, or a restaurant.

Also, consider the fees (software and hardware), as well as the processing fees charged for using the system. If you stick with the ideas on the list, you would be able to pick the POS system that meets your needs and blends with your existing payment options.

Chukwukadibia Abah
CHUKWUKADIBIA ABAH is a passionate freelance writer and contributor to the Entrepreneur Business Blog. You can follow him on: Facebook: https://web.facebook.com/ChukwukadibiaAbah1/ Twitter: https://twitter.com/Chukwukadibia01 LinkedIn: https://www.linkedin.com/in/chukwukadibiaabah/ Instagram: https://instagram.com/chukwukadibia_abah

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