A POS (Point of Sale) system is the combination of software and hardware to facilitate payments and other types of business operations.
Today, Point of Sale (POS) systems are a common feature in most retail businesses, and you’ve probably used one yourself.
The wide range of benefits they provide to business activities explains their spread and popularity.
If you’re curious to know some of them, keep reading. This article will provide you with ten benefits of Point of Sale Systems.
Let’s dive right in.
- Quick payments
The process of digitizing prices and running payments manually may require more time and effort for you and your staff. As well as this, manually processing operations can make customers wait longer, potentially resulting in their dissatisfaction.
It is here where POS systems come in handy. One of their best benefits is, in fact, their ability to make payments efficient and process them more quickly.
The merchant chooses or scans the barcodes of the items the client wants to purchase, and the system calculates the total.
Then, depending on the type of system used, customers can pay with cash or with their debit or credit cards.
It is a process that starts and ends in seconds, or at most a few minutes. As a result, business owners and employees won’t have to spend time on this task and can focus on more urgent ones.
- Simple invoicing
The invoice is a time-stamped commercial document that contains information about a transaction between a seller and a customer. Generally, it has the description of the product or service, the name of the seller and customer, and sometimes the terms of payment.
Managing invoices is extremely important for your business accounting operations.
Manually completing this process, however, can take a long time, in addition to requiring knowledge and expertise. If you lack any of these requirements, you may even need to hire a professional, increasing your business’ costs.
In such a case, a POS system, such as Lightspeed’s Point of Sale system, can automate the process of issuing invoices and recording relevant purchase information, saving you time and ensuring accuracy.
- Easier inventory management
As well as handling payments, a POS can also help you keep track of your inventory.
Manual inventory management involves registering each product one by one, along with its description, price, quantity, and other details. This can be a tedious process that takes a lot of time.
Instead, you can use a POS to view your inventory in real-time and to keep track of what and how many products you own over a certain period of time.
When you receive your inventory, if these products already exist in your catalog, you will need to scan your items, enter their quantities, and your POS system will record them in the digital inventory immediately.
Then, any product you sell will automatically be deducted from digital inventory.
As you can imagine, it is a lot more efficient and time-saving than manually tracking your inventory.
- Lower error rate
Performing accounting, sales, and other business operations manually can result, from time to time, in errors, such as typing errors.
As a result of this, you may experience confusion within your organization and it can take you a long time to make the necessary adjustments. Furthermore, some errors might be irreversible, making them difficult or even impossible to fix.
Instead, with a POS system, completely powered by technology, you can drastically reduce the risk of these errors.
For instance, managing your inventory will be a lot easier since you won’t have to add or remove items manually. The system will automatically carry out the work, minimizing or even completely removing the possibility of errors.
Obviously, this is also beneficial for preventing potential profit losses for your business.
- Increased efficiency
As you can imagine, another relevant benefit of POS is that it boosts the efficiency of your business.
By automating certain tasks and processes, such as payments, accounting, and inventory management, your business will be more productive and operations will run more smoothly.
A point-of-sale system can also help you organize your business clearly, delegating what is possible to technology and leaving the rest to you or your employees.
The reduction of tedious tasks will also improve employees’ productivity since they will not feel overwhelmed. Because of this, employees’ moods will also go up, resulting in higher productivity.
Additionally, Point of Sale systems can increase the efficiency of your business by speeding up certain processes, such as the completion of transactions, which will improve the customer experience.
- Time and money savings
In light of the points outlined above, it is clear that POS systems can automate some tasks, saving you both time and money.
In essence, this means eliminating labor-intensive manual processes such as accounting and inventory, which are time-consuming and may result in mistakes.
By automating your company’s processes, you will be able to focus on more urgent and less time-consuming tasks, thus fostering better productivity and scaling up your retail business.
Also, if you aren’t an expert in certain fields, for example, accounting, you may have to hire someone to handle these tasks, increasing your company’s costs. Instead, a POS relieves your company of this expense.
- Better customer experience and satisfaction
The experience of having to wait for a long time at a counter is not one that any customer would appreciate. Nevertheless, this situation often occurs in many retail stores due to the slowness of payments and other types of operations that require human intervention.
While it may not seem so bad, these situations can actually ruin the image of your business, leading to bad reviews, and loss of customers and sales.
Instead, a POS has the ability to make transactions and payment processes quicker and more efficient, reducing the time wait in your retail business.
The transaction will be processed within seconds, and the system will even issue an invoice during this timeframe.
As a result, you’ll be able to offer your customers a better experience and increase their satisfaction.
- Enhanced company organization
With a POS system, you can handle multiple business activities efficiently and organize your business in a better way. For example, it can automatically handle sales, payments, inventory, and accounting, so you don’t have to spend time on them or hire an individual to do them.
Also, all data coming from activities and transactions will be processed and stored in the system, thus improving information accessibility and handling, and facilitating other tasks, such as monitoring and accounting, and the resolution of potential errors.
Additionally, as outlined in one of the previous points, POS software can also reduce the risk of errors within multiple activities, resulting in a more efficient business.
A well-organized company can also produce more and improve communication and collaboration among employees.
- Improved promotion management
There are some times during the year when you want or need to activate certain promotions for your products, such as during Black Friday and winter sales.
The process of manually applying promotions to any of the products you sell can be quite challenging and time-consuming. Manual promotion management would mean applying discounted prices to every product and verifying each.
This means you may end up spending more time on this activity and neglecting other important tasks.
Instead, one of the best benefits of a Point of Sale system is its ability to facilitate this type of process. If you already have all your products registered in the system, you will only need to apply and activate the promotions within the system.
After that, the system will automatically update discounted prices and help you keep track of them over time.
- Upgraded data security
Accounting, transactions, inventory, and more activities can involve the use and recording of important business information, including sensitive information, such as customer names.
Handling each transaction or task related to these processes manually may result in the unintentional loss of some important information, some of which can be crucial for determining your business’s profit and balance sheet.
Also, if an unauthorized user accesses this data, your business may have to deal with legal matters in addition to heavy fines, which could compromise the financial stability and reputation of your organization.
POSs, on the other hand, are more secure systems that encrypt all the information and employ two-factor authentication in order to prevent possible hacking.
Here comes the end of this blog post about the ten benefits of Point of Sale Systems.
According to the points listed above, a POS can benefit your business activity in several ways. Automating some procedures, such as inventory management, and speeding up some activities, like the issuing of invoices and the processing of payments, are some of its capabilities.
Both your organization and employees would benefit from using it, as it relieves them of tedious tasks and prevents errors from occurring.
Implementing it as soon as possible will allow you to reap all the benefits.
I appreciate you taking the time to read this post. I hope you found it informative and worthwhile.
If you’re now considering investing in a Point of Sale system but don’t know which one to choose, you might find helpful this blog post on six things to consider when buying a POS system.