Point of Sale Software: Your Key to Business Success

In today’s business environment, point of sale (POS) software systems are perhaps the most important components of business automation. Point of sale systems are staples of the modern retail industry, although the hospitality and restaurant industries have also become major adopters of POS technology.

The advent of POS systems in the mid-1970s ushered in a new era in the business marketplace. POS systems are among the most innovative business technology products. Commercial use of sophisticated information technology processes and protocols, such as local area networks, synchronized backups, peer-to-peer communication, and client-server modeling, began when retail giants Dillard’s and Pathmark installed point-of-sale systems developed by IBM. Touch screen technology was adopted by POS system developers in the early stages of retail implementation. Self-checkout systems were implemented after certain standards in hardware, communication protocols, and barcode scanning were established.

Today’s typical POS systems are capable of handling critical aspects of your business such as inventory tracking, business reporting, accounting, and information gathering. For many small business owners and operators, a POS system is the key to consolidating and integrating most aspects of daily business operations.

Retail customers these days demand more efficiency from the businesses they patronize. A modern store must be able to quickly register a sale. This is true for any type of store, whether it’s a kiosk, brick-and-mortar, telephone catalog sales, or online store. Increased business competition demands a better understanding of your customers. Point of sale systems can help you store important customer profiles, purchase history, and spending habits.

Vendor integration is another useful feature found in many POS systems. Thanks to standards in POS software and barcode applications, vendors can provide their customers with pre-loaded catalogs that can be uploaded to certain data folders used by the POS system. This is a convenient, time-saving feature that comes in handy when creating purchase orders or searching for inventory items, since item information can be obtained simply by scanning the barcode or entering a part number.

Business owners can rely on their POS systems to provide them with instant data reports showing how their businesses are doing at any given time. Most POS systems also interface with popular commercial accounting software packages. This interaction is crucial for businesses operating business loans and lines of credit, and makes it easier for accountants to review the company’s books. Businesses that benefit from a mix of retail and service operations may be subject to different levels of liability and tax reporting. To this extent, POS software packages are the best option to properly account for the revenue stream generated by the business.

Credit card processing is also made easier with point of sale systems. It is recommended that businesses set up a POS system before choosing a merchant account and gateway or verify with their POS provider which credit card processing solution to use. Many credit card processors are constantly reviewing their interaction capabilities with different POS systems. In fact, partnerships between POS providers and credit card processors are common.

While POS systems offer a long list of benefits for business owners, it’s important to note that not all POS software packages are perfect for every business. Since there are many different POS system options, it is up to the business owner to compare prices and physically test the system before purchasing and implementing it.