Some POS systems integrate with other programs to automate business operations and streamline information sharing. Ideally, your POS system will have additional capabilities rather than simply recording sales. This data can then be stored within the system for inventory tracking, financial reporting, and hosting customer information for future contact and reference." "The POS will generate the transaction and contain all of the data gathered from it. "When a customer wants to complete a transaction, you will utilize a POS system to run their payment – card or cash," Weitz told.
However, according to Jared Weitz, CEO and founder of United Capital Source Inc., data from these transactions can be used for many other business functions. The basic function of a POS system is to complete sales transactions. It has a variety of proprietary hardware at varying price points. Tip: If POS hardware is important to you, check out our review of Clover. These are the most common types of POS hardware:ĭepending on your industry and budget, you can integrate additional POS hardware, such as these items: Mobile POS systems are becoming the most common choice for small and midsize businesses, especially those that need additional flexibility in their sales processes. POS hardware refers to the physical components needed to conduct the sales transaction.
#WHATBIS POS SOFTWARE#
Although local server-based software offers more stability, it's more expensive and typically geared toward enterprises.īottom line: A POS system is a combination of hardware and software that allows businesses to complete purchases, record sales data, manage inventory and employees, and view business performance reports. Cloud-based software allows you to access your sales data from any device – even ones that are off-site – as long as you have an internet connection. Software can be cloud-based or local server-based however, cloud-based software is more popular with small business owners due to its usability, affordability, security and convenience.
POS software is a digital technology platform that completes purchasing transactions. What is a POS system?Ī POS system comprises two elements: POS software and POS hardware. In this article, we break down what a POS system does and which features you need to be on the lookout for so that you choose a system that is perfect for your business and your budget.Įditor's note: Looking for the right POS system for your business? Fill out the below questionnaire to have our vendor partners contact you about your needs.
The best POS system for your business depends on your company size, industry, budget and the features you need. There are several types of POS systems, each with its own features and functionalities for example, you can get a simple platform to conduct sales transactions or one that includes various operational capabilities, like inventory management. To complete a sales transaction, your company will likely need a point-of-sale (POS) system.