Today, we are going to cover lots of grounds and start from the scratch by discussing on how a POS system works. We will also discuss how POS (Point of Sale) systems have evolved from its beginning till now.
So let’s start this article by going back to when a point of sale system was just created; which was just a cash register. Early POS (point of sale) don’t know the price of each product. Anybody operating the POS would have to manually enter the price of each of the item often with the help of price tags. They would them take the customer’s money and place it in the cash drawer, and hand the customer a receipt.
Trust me; the cash register was so much work! But as the POS systems began to evolve, it became easier to operate a POS system, and the POS system stored more product database itself rather than the operator storing it.
What they do then is to include a barcode reader, so there was no need for manual price entry, and they would be able to store transaction detail electronically.
However, nowadays things are more sophisticated. Some businesses still use the POS system described above, but many other retailers are moving on to use advanced cloud-based POS systems. In this case, all the important data is stored in the cloud.
Let’s move on to talking about the Key components of a POS system
No matter how modern a POS system is, it still consists of some of the following components I am about to list.
- A card machine. It is used to process payments made by a credit or debit card
- A cash drawer. It is used to store the day’s taking, and also vouchers, cheques, and payment slips.
- A receipt printer. It is used to print receipts.
- A barcode reader. It is used in retail businesses with many products.
Let’s talk about the POS software
The POS software stores information and allows the information to be managed within a database. However, the specifics of software can vary depending on the industry. Some software can be used for all businesses, while some software is niche-centric.
Let’s talk about the POS function
There are lots of functions of the POS. With the POS, you can keep track of sales to see how much was earned, and the quantity of items sold. Another great function of the POS is the inventory management. The inventory management helps you know the quantity of items you have in stock. With the inventory management, you will be able to keep track of your stock.
A POS system is a very big investment for your business because it offers lots of functions that would help your business move forward.