Whenever you eat at your favorite restaurant, or when you make a purchase from a retail shop, you are completing a Point of Sale or POS transaction. Generally, a POS transaction is what takes place between a merchant and a customer when a product or service is purchased. These kinds of transactions need a powerful and well-organized system to help the managers, owners, and employees or workers take care of the business more efficiently and conveniently in so many ways.
Big and even medium-sized businesses usually often already have POS systems such as cash registers, card payment terminals, and the likes. It is very rare, however, for small businesses here in the Philippines to have such. To have a better understanding of what a POS system is, what it does, the cons, and if you should be having one or not, the next few paragraphs will explain this subject in detail.
What is a POS System?
Let’s start with defining what a POS system is. A point of sale system is a system that processes a POS transaction and is usually comprised of POS hardware and a POS software combined. These devices make the business transaction between the customer and the business possible. To elaborate this further, a POS terminal, for example, is not just one mere hardware that completes and records your purchases and payments. Just like our mobile phones, it also has a brain (software) that commands and allows it to do its job efficiently.
Normally, a POS system is a network of computers made up of the main computer linked with several checkout terminals and supported by different hardware features or machines that can process payments starting from barcode scanners and ending with card payment terminals which are the ones responsible for completing POS activities. This means that all the POS terminals in a restaurant or a store is interconnected in one main computer where all the transactions that occurred are being recorded and analyzed.
What are the Different Physical Components of a POS System?
A system is made up of a few components and a POS System is not an exception. Like what has been discussed earlier, it is composed of both software and hardware, and these are the most commonly used hardware parts of a POS system:
The Monitor or the Tablet
This displays the product information and allows other functions such as employee clock-in, viewing sales reports, and the likes. Tablets are getting more popular these days for replacing bulkier monitors.
This device makes the checkout process automatic by extracting the product information and adds it to the checkout total. Barcode scanners are also able to integrate with inventory management systems to automatically regulate stock levels.
Credit/Debit Card Reader
This tool allows customers to use their cards for making payments, making it easier for both the customer and the seller who does not have cash on hand by the time of purchase.
Paper receipts remain vital for providing customers with a quick record of their purchase or returns and is still required here in the country.
This hardware secures a place to store cash for transactions. Though debit and credit cards are getting more and more popular these days, there is no doubt that cash is still used widely all over the country and having a cash drawer is very important.
There could be additional components than what is listed above depending on where a POS system is being used for.
What are the Main Features of a POS System?
Many tasks in a retail store can be really tiring and complicated and this is what POS systems will take care of for you and your business such as the following:
Allows you to generate completely detailed sales reports (based on the product, time, employee, total cost of items sold, total retail amount, net profit, profit percentage, gross margin and present charts on your business’ sales performance.
Scan and count products digitally, manage your stock, identify and track inventory with unique serial numbers, enable seamless ordering and consolidating purchases and orders.
Attach a sale/transaction to a customer, keep track of customers’ purchase history, and many more. Some more advanced systems even have a built-in loyalty program.
Employee Reporting and Management
Add employees to your system, plan and modify schedules for employees, track employees’ complete hours may it be weekly or monthly as well as overtime and analyze top performers.
A point of sale system is very critical not only for large businesses but also for small scale businesses. It is used in most storefront businesses and helps to manage everyday sales transactions and operations. If you think you can manually do what a POS system does, then you may think twice about getting such, however, it is important to know the risks involved.
Unfortunately, a POS system in the Philippines is not very popular to small businesses, ending up with their workers doing the tasks manually such as listing down the materials purchased (together with their serial numbers), its type, color and other significant description, the date of purchase, its price and the total amount which is computed manually too. Businesses that do not have POS systems also depend on the workers to take care of product records and inventories and nevertheless, as humans, no matter how careful we may be, errors may still be committed, and this can greatly affect the business directly.
If you don’t want to gamble your business being at risk for errors and such, having a POS system is your only option. Inaveit Systems Technologies, Inc. offers one of the best and most cost-efficient POS systems in the country which is designed to cater to different types of businesses. Do not hesitate to inquire by sending an email to firstname.lastname@example.org or email@example.com or you may give them a call directly at +632 559 2957 to know more about their products and services, pricing, and see if it fits your business needs.