Cash Registers vs. POS Systems
For many years, cash registers were the only real option when completing sales in a store, shop, or restaurant. But with the advent of technology, the options have now expanded to a variety of systems, allowing you to find the one that works best for your business. Point of Sale (POS) systems have many benefits that can significantly enhance your business operations and customer satisfaction.
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Here are our top 10 reasons to make the switch from cash registers to a POS system:
- Simplified Accounting Process: POS systems simplify the accounting process. Old-fashioned cash registers force accountants to manually sort through hundreds, even thousands, of receipts, but a POS system provides streamlined access to your sales data, with built-in and customizable reporting directly accessible to your finance team.
- Comprehensive Inventory Management: Unlike a cash register, a point of sale system often includes an overall inventory management system. This allows store owners to track their biggest sellers, monitor stock levels in real-time, and set automatic alerts to reorder those products when stock gets low. This minimizes the risk of stockouts, ensures product availability, and improves overall inventory control.
- Quick Access to Transaction History: It is easy to look up past transactions with a POS system. If you need to know how much you sold last Tuesday a POS system can give you that information in a snap. It would take many hours of laborious work pouring over receipts to find the same answer using a cash register. This quick access to transaction history enables better decision-making, customer support, and accurate financial reporting.
- Streamlined Purchase Order Creation: You can use a point of sale system to create your own purchase orders, eliminating an extra step in the ordering process. Some POS systems can even automate the ordering process to make sure you never run out of your hottest selling products.
- Familiarity and Comfort for Modern Workers: Today’s workers are often more comfortable with POS devices than using old fashioned cash registers. The generation now entering the workforce never knew a time without computers, and as a result they are very comfortable working with technology like POS devices. This familiarity reduces training time, enhances productivity, and ensures a seamless transition from traditional cash registers.
- Improved Service Speed: POS devices provide speedier service than old fashioned cash registers at every step of the sales process. From faster authorization of a credit card transaction to quicker printing of receipts, these efficiencies let you serve more customers in less time, increasing overall customer satisfaction.
- Detailed and Informative Receipts: Unlike cash registers, customers receive more informative itemized receipts with a POS device. Many cash registers can only print the date and the amount of the sale, but since POS devices are tied into the inventory control system they can provide much more detailed information, including a description of the item, the list price and the sale price. Detailed receipts enhance transparency, reduce confusion, and help customers make informed decisions.
- Minimized User Errors: POS devices can cut down on user errors with built-in checks and validations. Hitting a wrong key is always a risk when ringing in a sale, but POS devices can guide an user through each step to reduce those chances for error. By reducing errors, you maintain data integrity, improve customer trust, and streamline your operations.
- Lower Maintenance and Repair Costs: The maintenance and repair costs are often much lower on a POS device than with a cash register. The number of companies that repair cash registers is dwindling, and that means that repair costs continue to rise. On the other hand, there are many vendors who repair POS devices, and that can keep repair costs low. Opting for a POS system can offer cost savings and ensure ongoing system reliability.
- Enhanced Data Security: Protecting your business and customer information is key, and POS systems prioritize data security in a way that traditional cash registers can’t, as written records can be read by anyone who finds them. POS systems typically employ encryption protocols, secure payment processing, and user authentication features to safeguard sensitive data. By reducing the risk of data breaches and ensuring compliance, POS systems instill customer trust and protect your business reputation.
And one more bonus benefit for you!
- Integration with Business Tools: You likely have other tools in place at your business, your accounting software, customer relationship management (CRM) platform, or e-commerce system to name a few, and have a solution like a POS system that can connect with these existing systems eliminates a lot of manual data entry, reduces human error leading to inaccurate reporting, and overall enables smoother operations across your entire business.
This is an updated blog post that was originally published in 2016.
For questions regarding POS systems, and to find the right POS system for you, visit our website at http://retailtechinc.com/ or call toll free at 1-877-580-9687.
Retail Tech carries a wide variety of new and refurbished POS equipment. We offer installation and staging, POS printer repairs, and more. If you need help choosing a POS system, contact our POS systems specialists for help finding the perfect point of sale solution for your small business.