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Why is POS Software Useful? Examples of Top POS Solutions for 2020

Category: B2B News

Why is POS software useful? It’s an all-in-one solution that processes your customer transactions, payments, and inventory levels. It streamlines your staff management, provides you with live data access and helps you target customer marketing, among its numerous benefits.

In this article, you’ll get to know the major reasons why it’s useful to have a POS solution and how it can help your business’ checkout process. Here’s an overview of the points we’ll cover:

Have you experienced checking your inventory only to find out it doesn’t match your tallies? If you still operate with traditional cash registers, this is only a few of the problems you’ve probably encountered. Sales can go unrecorded and mistakes can be impossible to trace.

There’s a reason behind the innovations made for the systems that handle your customer transactions and checkout processes. Newer solutions, particularly POS software programs, are enabling users to accomplish their tasks more efficiently. With the rise of technology and the rapidly evolving business landscapes, sticking to an outdated system gives your competitors an edge over you.

Businesses actively using POS data according to product category in 2018. (Source: Askuity)

Businesses are moving to a POS solution and abandoning their older systems. By the end of 2020, 81% of retailers are planning to offer unified commerce to their customers according to BRP Consulting’s 2018 POS Survey. Meanwhile, 62% of the respondents increased the use of mPOS by the end of 2019. There is also the customer demand for more personalization where 91% of retailers will offer enhanced order visibility within the next three years.

This shift towards POS solutions is due to its indisputable benefits. At its core, the point of sale system is the same as your traditional cash register. But since it operates on computers, smartphones, and tablets, it opens an entirely new world of data and opportunities to streamline and automate your processes. For an in-depth information on its benefits, features, examples, and potential issues, read this what is POS software article.

For instance, 52% of retailers find it difficult to identify and engage their most valuable customers according to a survey by Marketing Charts. The next highest-voted challenge faced by retailers is distinguishing their own brand and experience from their competitors with 51%. Driving traffic to their retail stores through implementing strategies is also answered by 39%.

These challenges are hard to resolve using a basic cash register, However, using a POS system provides you with insights to data and tools to make data-driven decisions on running your business.

Common Misconceptions About POS System Migration

If you have been using manual cash registers for awhile, you may find switching to another solution daunting. However, it’s not as scary as it seems. First, let’s tackle the common reasons you may hesitate to transfer your checkout processes to a POS system:

  1. “POS systems are expensive.” Years ago, a POS system was only meant for large enterprises as the entire infrastructure is expensive. However, newer POS systems are now offered at economical prices. Cloud technology enables you to use the system in low monthly fees with various options available to cater your budget. This means you don’t have to pay a hefty price outright and you only pay for the system as long as you use it.
  2. “POS systems are high-tech.” There’s a misconception that POS systems are hard to use for people who are not tech-savvy. However, POS products today are built with ease-of-use in mind. They are more intuitive and easy to navigate around. Training, guides, and tutorials are also offered by POS system vendors to ensure your onboarding is smooth.
  3. “POS systems are bulky.” You may think about the traditional POS systems you see in full-service restaurants or big-box retail stores with large registers and types of equipment that look massive and formidable. Today’s cloud-based POS systems run on computers, tablets, and smartphones seamlessly. Bulky pieces of equipment are even replaced with sleek and sophisticated iPads and tablets.

Now that we got those factors out of the way, let’s proceed with answering the question: why is POS software useful?

Toast POS dashboard example

Clear visibility is one benefit POS affords to you. ToastPOS shows a detailed visualization of your business’ performance according to the day of the week and time of day, among others.

7 Reasons Why A POS Solution is Useful

There are also benefits of using a cash register such as affordability and long lifespan. However, it just doesn’t compare with the innovative and transformative solutions offered by a POS system. Why is POS software useful? It does what a cash register does, and more. Without further ado, here are 7 reasons why a POS solution is useful for your business:

1. It provides live data access

Using a POS system logs your sales and then provides reports in real time. This enables you to make decisions in a timely manner with data-driven facts. Furthermore, gone are the days when you have to be physically in your brick-and-mortar store to monitor your sales.

Cloud-based POS systems connect your data to your smartphone or tablet so you can access your business’ data from any location. No matter where you are, you’re still in control of things that are happening in your store, such as monitoring your back-office server room, for instance. This allows you to make optimal decisions and manage your sales in real time.

2. It automates inventory management

Manually tracking your inventory is prone to human error. It is time-consuming and expensive to manage and track your stocks. In a retail business, for instance, products come in a variety of colors, sizes, and variations. Keeping track of each product is a challenge.

With a POS solution, the system automatically updates your inventory when a customer purchases from you. You can also easily categorize product according to brands, types, colors, and SKUs, among others. This means you and your staff will no longer spend additional time in tallying your sales and records or tracing mistakes.

3. It provides an accurate sales history

The aspect of POS systems that attract many businesses to switch is how it eliminates manual tasks that take time and, therefore, money. Not only do you get charts and tables of your sales, but you also access integrated reports that show you past transactions, products that are stuck in the shelf for weeks, as well as products that sell best.

Getting your hands on this information is vital for making decisions that can help you gain profit. You’ll know which products your customer likes best, hence, you can ensure to stock on them so it won’t run out of stocks. It also helps you decide on what to do for products that are lagging on sales—whether to market them more or lessen their stocks.

4. It integrates with other systems

In order to run your business more efficiently, it’s important to connect your systems together and unify their data. This allows you to view all areas of business management in a central location. Once you integrate systems, you can use the data gathered to your advantage in various scenarios such as adjusting prices on slow days, consolidate shipping processes to lessen costs, and checking how certain variables impact your financials.

Automatically syncing data between your POS system and other applications such as marketing and accounting systems eliminates human error and manual data entry. By saving valuable time, you can expedite your processes and prevent slow lines so your customers won’t get frustrated.

Square dashboard example

Quick access to multiple locations is another major POS benefit. Square allows you to manage your multiple business locations through connecting your system.

5. It simplifies staff management

Beyond cash flow and inventory, your POS system has tools to help you run your business better. The retail and hospitality industry—the two main industries of POS systems—benefit from its employee management features.

For instance, in a restaurant layout, you can maximize table mapping features to assign sections to a specific wait staff for an effortless experience for both your staff and your customers. It also regulates time clocks, scheduling, and payroll. Furthermore, POS systems increase accountability as each transaction is designated to the employee who processed it. This close monitoring prevents mishandling and theft attempts internally.

6. It targets customer marketing

POS systems can collect your customer data from their previous transactions. Hence, today’s marketers are leveraging the integration of POS systems to marketing applications by using sales data to connect and reach out to customers in a highly-targeted level.

There are various ways to do so. For instance, you can target campaigns to customers who spent the most in your restaurant during a certain frame to ensure your campaigns are generating a more specific yet relevant group of customers. Additionally, you can consolidate data from multiple business locations if you have more than one branch, anticipate potential spikes in product demands in reaction to your campaigns, and track which campaigns are bringing in guests.

7. It streamlines tax and accounting

According to TD Bank via Entrepreneur, 58% of business owners find bookkeeping as their least favorite task. On the other hand, you can have more control over your business’ financials by utilizing your POS system’s capability of calculating tax and simplifying accounting and bookkeeping.

Through integrating with your accounting software, information is updated between systems in real-time when changes are made such as the number of employee hours worked, sales that are completed, and stocks reduced from the inventory.

Sales tax is also separated from the cost of goods automatically. Even if you have more than one type of tax for a transaction, the system will credit the amount appropriately. This can help you issue sales tax payments with no worries of data entry errors that could cost you hefty fines.

TouchBistro dashboard example

POS software keeps you in the loop of your KPIs. TouchBistro’s dashboard gives you an overview of your net sales, average spends, top sales categories, and top shifts, among others.

Examples of POS Software

Now that you have a better grasp on the usefulness and benefits of a POS system, you may be interested to know some examples of POS software. If you’re looking for more options, check out this 20 best POS systems for restaurants. Meanwhile, here’s a quick compilation of some of the leading POS systems today:

  1. ToastPOS. ToastPOS is a restaurant point of sale and management system that’s built to simplify your operations. Catering to businesses in the United States, it combines your point of sale, guest-facing technology, front of house, and back of house in a single platform to ensure a seamless connection throughout your business. The software is packed with industry-specific features for the foodservice industry (from full-service and quick service to enterprise) to maximize. Its main features include optimized checkout experience, CRM, reporting, online ordering, gift cards and loyalty programs, and customer service. In order to see if ToastPOS matches your restaurant needs, you can sign up for a ToastPOS demo here.
  2. Square. Square is a POS software that specializes in credit card processing. With that, it’s main features include accepting cards, checks, gift cards, and cash, invoices, recurring payments, digital and printed receipts, and discounts, refunds, taxes, and tipping, among others. It has another tool that’s purpose-built for retail businesses with customer profiles, employee timecards and permissions, inventory management, and search-based point of sale. Combining these two tools together make it an all-in-one solution for your business. It’s best to try out its features first to determine if it matches your requirements. To do so, sign up for a Square free trial here.
  3. TouchBistro. TouchBistro is known as the iPad POS solution for restaurants. By running your POS in your iPad, you can ensure the entire experience is intuitive and simple. The iPad tableside enables you to expedite turning tables with automated prompts for your staff to upsell. It also has a smart self-ordering kiosk for customers to upgrade their own meals. Additionally, its main features include mobile payment and processing, menu management, staff management, staff scheduling, CRM, inventory management, and CRM, among others. To test drive the app’s capabilities, you can sign up for a TouchBistro free trial here.
  4. Poster POS. Poster POS is a point of sale and inventory management system built for cafes, restaurants, and stores. One of its highlights is its quick setup time due to its cloud technology. The platform combines solutions for analytics, CRM, finances, inventory, and front-office. It supports remote access as long as you have an internet connection. At the same time, it works offline when you experience temporary loss of internet connection. The software has a variety of features to offer, hence, checking it out personally is recommended. You can sign up for a Poster POS trial here.
  5. Vend. Vend is a POS system specifically built for retail businesses. It has a multi-outlet functionality that connects one up to more than 20 stores with your iPad, Mac, and PC. Its core features are inventory, ecommerce, point of sale, integrated payments, CRM, and reporting. You can access the system remotely and use its easy-to-use yet advanced tools to maximize its features. It’s also a scalable solution that you can rely on to grow your business.
  6. inResto. inResto is a restaurant management suite that comprises of eight comprehensive modules that can efficiently cover certain facets of your operations. Its modules can easily mesh with one another, giving users the flexibility to add more modules as they see fit. It includes modules for managing reservations, orders, feedback, tables, campaign automation, and more.
  7. Kyte POS. Kyte POS is a lightweight mobile sales application that allows small businesses to handle all aspects of their business from within their fingertips. It comes with a large selection of tools built to help businesses sell anywhere, efficiently manage their customers and staff, engage clients with ease, and more. Kyte POS also keeps users up to date with their inventory movement so that they can avoid running out of stock and upsetting their customers.

By Nestor Gilbert

Senior writer for FinancesOnline. If he is not writing about the booming SaaS and B2B industry, with special focus on developments in CRM and business intelligence software spaces, he is editing manuscripts for aspiring and veteran authors. He has compiled years of experience editing book titles and writing for popular marketing and technical publications.

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