A ‘point of sale’ or POS is a common software that is used by many in the business world. Regardless you are a retailer or restaurant owner, POS requires you to deal face-to-face with customers whenever they are processing the payment at the time and place. A POS is not an independent machine or process- it’s an amalgamation of things or a string of networks that syncs you with your sales whenever your customer is making a transaction. For instance, you can choose your choice of set-up, such as what payment methods to accept, how you print your paper receipts, and so on. Thus, this is how POS systems work.
The Key Components of a POS system
The latest POS systems are composed of hardware and software components. Although both are interconnected, the difference between the two is how they are stored and used.
The hardware is part of the device used during the payment process. For instance:
- POS display
- Barcode scanner
- Receipt printer
- Payment terminal
- Cash drawer
The software is the program that connects your post. The features include:
- Sale screen
- Inventory management
- Customer relationship management
- Reporting and analytics
POS software can be divided into either being cloud-based or on-premise (on-site):
- Software is installed on your computer or server location of your store.
- You have to pay for the storage upfront or licensing fee.
- Frequent maintenance and manual updates are necessary at all times.
- You do not need an internet connection since all your data is within your computer.
- You have to be connected online so that you can access your data on your computer.
- Your software-as-a-service (SaaS) system does not need constant upkeep as it is instantly updated and maintained by your POS server upon each usage.
How Do POS Systems Work?
The best POS systems work hand-in-hand with all the different components so they can connect from one to another easily:
- For a sale to kick start, the cashier has to scan a product where the POS software will tell you the display of the product along with the price.
- On the backend, the software is connecting with its inventory management and informs them what the remaining stock levels are and how many items have been purchased by the customer.
- At the same time, the cashier tells the customer the total amount of the purchase, and the shopper selects a payment method of his or her choice. If it is via electronic payment, the payment terminal will be instantly alerted where the customer will make the payment on the spot. If it is by cash, they can hand the money to the cashier who will then confirm the amount on their side. After that, a receipt comes out where the cashier will print it out and hand it to the customer.
Where to Get the Best POS Accounting System?
Shogo is here for you with the best POS accounting automation software that money can offer. We are the winning solution for all your business accounting needs. We provide the latest technology that can help elevate your business to another level so that you can be a cut above your competitors.