A Point of Sale (POS) is a system of a computerized network that is operated by a central computer (server) linked to multiple checkout points. Simply, a POS is a point at which a client is billed for the products they buy. Aside from the Internet worked components, there has to be software to manage the special hardware. Having control over your inventory gives you piece of mind as you can track and record periodic sales. The advantages of having a POS far much outweigh a manual system for the following reasons:
- It analyzes sales to see how items are moving, allowing you to manage your shelves accordingly.
- The system will track best performers and worst performers, giving you the chance to order items accordingly.
- A POS helps gather insights into your business. This helps you know how much you are making and understand whether you are making profits or losses.
- With a POS, you can bill customers accurately and manage your cash flow.
Before You Buy that POS System
Before spending colossus amounts of money in settling on a POS system, ensure you have the following checklist to avoid any future complications or costs in upgrade:
- Ease of Use and Pricing: Having complicated software with a steep learning curve can affect your rate of serving one client. Before settling on a POS, ensure its interface is user-friendly. A POS should also be able to give you pricing options like discounts, retail, custom formulas and the percentage of cost.
- Upgradability and Scalability: The system should have adequate upgrade abilities provided by the vendor. It should also be scalable, that is, if you want to add more terminals, the system should be able to accommodate that. You don't want a situation where you are forced to purchase a new system altogether.
- Updating Inventory and Security: The system should update inventory in real time. As soon as an item is checked, the inventory should be updated immediately to avoid a situation where you are selling a non-existent item. Finally, how secure is the system? The systems should have adequate security checks on every terminal. Only authorized personnel should delete or modify the inventory.
- Tax: Always make sure that the software has a tax module certified by the revenue authorities. An inbuilt tax module allows you to quickly reference back to invoice numbers, customer name and amount for every sales tax entry. This way, you don't have to worry about making separate tax calculations. In addition, in case you are visited by sales tax police, it makes it easier to audit.