Unleash the Power of POS Software & Grow Your Business
- Romanthi Fernando
- May 10, 2023
- 9 min read
Updated: Jun 21, 2023
When you are on the steering desk of a business, every decision you make will have an impact on its profitability and growth trajectory. As an owner, your core interests lies in growing your business and making sure you have all the right information you need to take the right decisions.
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One method of sure success of getting the right information is having your boots on the ground. If you are running a coffee shop, sending time in the shop, getting to know the customers, what are they frequently buying, getting kitchen staff to prepare high quality orders, making sure all the supplies arrive on time and the quality of ingredients are on par are a few of those steps that would be a part of your daily routine.
But most often the smaller details would skip even a hard-working business owner with all the daily madness in keeping the shop afloat. So how can you save yourself, your business interests, and the staff you have employees while being able to do everything you like to do?
Financial Management is one of the most sought-after services and support levels required by small to medium sized entrepreneurs. And if you think, 'ah this is me!' You are not alone. Fortunately for you, your business is born to a world that is abundant with technology that can process even the most intricate data with just a click.
Let's break it down. When it comes to a business, a Point of Sale System a financially eloquent software with a cloud based back office web portal is built to provide you with a high level of reporting from profitability to performance, costing to valuations even status and immediate feedback to suppliers, which makes running a business on any device - a reality.
So why is a POS software with an in-depth back office software important and how can a business owner use it to thrive and grow your business? Let's take an account of a few important features that will blow your mind.
Features of an POS system
1. Simplified Sales Process:
A POS software automates and simplifies the sales process, replacing traditional cash registers and manual record-keeping. It allows businesses to quickly process transactions, calculate accurate totals, and generate detailed receipts for customers. This not only saves time but also reduces human errors, improving efficiency and customer satisfaction.
2. In touch with current cashflows, profitability and status - in real time
A cloud based back office-based point of Sale software can give your business wings. Not to mention the real time data updating that gives you crystal clear visibility of your short term and long term goals. Such as from where your inventory, employees and how much cash you have in your drawer to vital data like profitability, sales summery, and advanced sales reports. As long as all the sales and purchases take place through the POS, your data accuracy will be more accurate.
3. In depth understanding on inventory movement
Smooth flowing inventory is the life blood of any business. Having visibility of low stock inventory items and time taken to order will give you that short term leverage on optimizing supply chain. Being able to order the right quantities of stock, system prompted PO and GRN tracking helps you save time and unnecessary costs. With a cloud-based Point of sale software you can extract both short term and long term information and take the right decisions.
4. Device integration and e-bills
The advent of technology has made acquisition and ownership of financial products to small and medium businesses more economical and user friendly. Gone are the days where bulky cash registers comes with a POS device and bills had to be printed. Now business owners can simply install the point of sale software to a tablet and connect multiple devices like barcode scanner, printer via Bluetooth and start operations and send customers e-bills instead of printed bills.
5. Building customer bases and promotion planning
Having visibility of customers purchase patterns is always exciting. The right insights when teamed up with sales promotions and pricing plans, will have a supernova effect on your business. And your POS back office has the ability to equip you with just that kind of information. The right back office platform can help you plan, schedule and organize promotions and allocate just the right customer to enjoy these benefits. A point system and discounts is a common feature in most successful back office.
6.Accessibility, permissions and data security
Working with multiple shops, having multiple user roles handling cash and sensitive information such as customer data and contact information or payment information means you need to think twice (or more) about which information can be seen by who. A well-developed back office platform will allow you to enable multiple levels of accessibility and permissions. Password protection can be enabled for entering and closing shift and viewing sensitive information such as cash balances across shops/ terminals and user groups.
Furthermore, the more devices you have connected – such as handheld scanners or tablets, mobile devices with access to the POS – the more ways there are for malware, viruses, and other issues to affect the point of sale and back office system. Ensure devices are serviced by the manufacturer or a trusted service provider. Regularly clean off old user IDs or passwords of employees who are no longer with you, and monitor them for any changes that weren’t authorized.
7. Streamlined Reporting and Analytics:
A comprehensive POS software provides powerful reporting and analytics features. It allows you to generate sales reports, track key performance indicators (KPIs), and analyze trends. These insights help you make data-driven decisions, identify top-selling products, measure employee performance, and understand customer preferences. Access to accurate data empowers businesses to refine strategies, improve operations, and maximize profitability.
8. Integration and Scalability:
POS software can integrate with other business tools such as accounting software, customer relationship management (CRM) systems, and e-commerce platforms. This integration streamlines data flow, eliminates duplicate entries, and enhances overall productivity. Additionally, a good POS software is scalable, accommodating your business's growth and adapting to changing needs.
9. Employee Management:
Efficient employee management is crucial for smooth operations. POS software simplifies employee scheduling, tracks hours worked, and manages payroll. It provides role-based access, enabling you to restrict access to sensitive information and monitor employee performance. By automating these processes, you can save time, reduce administrative tasks, and focus on other aspects of your business.
7 Best POS Solutions for small and medium businesses
1. Square Point of Sale
Square is a widely used and versatile POS system that offers a range of features for small businesses. It includes tools for processing payments, managing inventory, and generating reports. Square POS is user-friendly and compatible with various hardware options. Learn more at: https://squareup.com/us/en/point-of-sale
2. Shopify POS
Shopify is a leading e-commerce platform that also provides a comprehensive POS solution. It seamlessly integrates with Shopify's online store, allowing businesses to manage both their physical and online sales from one central dashboard. Shopify POS offers features like inventory tracking, customer management, and analytics. Explore more at: https://www.shopify.com/pos
3. Lightspeed Retail
Lightspeed Retail is a cloud-based POS system designed for retailers. It offers advanced inventory management, employee management, and reporting capabilities. Lightspeed Retail is suitable for businesses of all sizes and includes features like integrated payments and customer loyalty programs. Visit their website for more information: https://www.lightspeedhq.com/pos/
4. Vend
Vend is a popular POS software for retail businesses. It provides tools for inventory management, sales tracking, and customer engagement. Vend offers a user-friendly interface and integrates with various hardware and payment providers. Discover more about Vend at: https://www.vendhq.com/
5. Toast POS
Toast POS is a feature-rich system designed specifically for the foodservice industry, including restaurants, cafes, and bars. It offers robust functionalities such as menu management, tableside ordering, kitchen display systems, and reporting. Toast POS is known for its intuitive interface and strong customer support. Learn more here: https://pos.toasttab.com/
6. Revel Systems
Revel Systems is a comprehensive POS software that caters to a range of industries, including retail, restaurants, and hospitality. It provides features like inventory management, employee scheduling, table side ordering, and loyalty programs. Revel Systems is scalable and can support businesses of varying sizes. Explore their offerings at: https://revelsystems.com/
7. ShopKeep
ShopKeep is a cloud-based POS system designed for small to medium-sized businesses. It offers easy-to-use features for managing sales, inventory, and customer relationships. ShopKeep also provides integrated payment processing and robust reporting capabilities. Find out more at: https://www.shopkeep.com/
5 Tips for choosing the best POS for your buiness
When choosing the best POS (Point of Sale) software for your business, it's important to consider various factors that align with your specific needs and requirements. Here are five tips to help you make an informed decision:
Define Your Business Needs: Before selecting a POS software, clearly outline your business requirements. Consider aspects such as the size of your business, industry-specific features, inventory management, integration capabilities, reporting and analytics, and any unique needs or workflows. This will help you identify software that caters to your specific needs.
Scalability and Flexibility: Choose a POS software that can scale with your business as it grows. Ensure the software supports additional registers, multiple store locations, and handles increased transaction volumes without performance issues. Flexibility is also crucial, as your business needs may evolve, and you might require customization or integration with other systems.
User-Friendliness and Training: The usability of the POS software is vital, as it affects staff productivity and efficiency. Look for an intuitive and user-friendly interface that minimizes training time for your employees. A software provider that offers training resources, tutorials, and excellent customer support can also be beneficial for a smooth transition and ongoing assistance.
Integration and Compatibility: Consider the software's compatibility with your existing hardware, such as barcode scanners, receipt printers, cash drawers, and credit card terminals. Ensure the POS software integrates with other business systems you rely on, such as accounting software, CRM systems, or e-commerce platforms. Seamless integration can streamline operations and data management.
Security and Data Protection: POS software deals with sensitive customer and financial data, so prioritizing security is crucial. Look for software that offers robust security measures, such as data encryption, secure payment processing, and compliance with industry standards like PCI-DSS (Payment Card Industry Data Security Standard). Regular software updates and vendor support for security patches are also essential to protect against emerging threats.
Remember to research different POS software providers, compare their features and pricing, read customer reviews and testimonials, and consider seeking recommendations from other business owners in your industry. Taking the time to evaluate your options will help you choose the best POS software solution for your business's specific needs.
Common Pricing traps with case studies in POS softwares
When it comes to point-of-sale (POS) subscriptions, there are a few common pricing traps that businesses should be aware of. These traps can sometimes lead to unexpected costs or unfavorable terms. Here are some examples and case studies:
1. Hidden Fees:
Some POS providers may advertise low monthly subscription fees but hide additional charges that can add up over time. For example, they might charge extra for features like inventory management or customer support. Businesses should carefully review the terms and conditions to uncover any potential hidden fees.
Case Study: A restaurant subscribes to a POS system with a low monthly fee but later discovers that there are additional charges for adding more menu items and integrating with third-party services. These unexpected fees significantly increase the overall cost of the POS system.
2. Tiered Pricing
POS providers often offer tiered pricing plans, where different features or capabilities are unlocked at higher subscription levels. While this can be advantageous for businesses with specific needs, it can lead to paying for features that are unnecessary.
Case Study: A retail store signs up for a POS subscription and chooses a higher-priced plan to access advanced inventory management features. However, they later realize that they rarely use these features, and the extra cost is not justified.
3. Long-Term Contracts
Some POS providers offer discounted rates or incentives for signing long-term contracts. While this may initially seem beneficial, it can become a trap if the business's needs change or if the POS system doesn't meet expectations.
Case Study: A small business commits to a three-year contract with a POS provider to receive a discounted monthly rate. However, they experience issues with the system's functionality and customer support, making it difficult to switch to a more suitable solution without incurring penalties.
4. Expensive Integrations:
POS systems often integrate with other tools such as accounting software or e-commerce platforms. However, some providers charge exorbitant fees for these integrations, which can significantly increase the overall cost of using the POS system.
Case Study: An online retailer subscribes to a POS system that claims to integrate seamlessly with their existing e-commerce platform. However, they later discover that there is an additional integration fee, which is significantly higher than what they anticipated, putting a strain on their budget.
5. Price Increases:
POS providers may start with attractive introductory pricing to lure businesses, but then raise prices significantly once they are locked into the system. This can result in unexpected cost increases and budgetary challenges.
Case Study: A salon signs up for a POS subscription with an introductory rate, only to find out that the provider increases the price by 50% after the first year. This unexpected price hike puts strain on the salon's finances and makes it difficult to explore alternative options.
To avoid falling into these pricing traps, it's crucial for businesses to thoroughly research and compare different POS providers, carefully read the contract terms, and ask detailed questions about potential hidden fees or future pricing changes before committing to a subscription.
Conclusion:
Investing in a reliable POS software is a strategic decision that can yield numerous benefits for your business. From simplifying the sales process to streamlining inventory management, generating insightful reports, enhancing customer experience, and facilitating employee management, a robust POS software empowers you to optimize operations and drive growth. As technology continues to evolve, embracing the capabilities of a POS software becomes increasingly vital for businesses of all sizes to stay competitive and meet the ever-changing needs of their customers.
Interested to partner? Write to me on fernando.romanthi@gmail.com
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