What Is POS

September 5, 2018 / GuidesFor Team

Point of Sale or POS refers to the location or point wherein sales take place in a business. This may include a retail counter or a checkout line. A point of sale system includes a combination of computer software and hardware that manages all the sales in a business.

POS can be a very great tool for companies in when it comes to:


  • Facilitating orders

A business with a good POS system can effectively facilitate orders which allow the company to

save more time while ensuring accuracy. With POS systems, a business can decide how many

and which items they should place on their next orders.


  • Tracking customer information

A POS system can track key points of customer data which can lead to better sales,

promotions, product decisions, and a keener understanding of the market. Tracking of customer

data can collect different information on customer’s favorite products, types of payment,

their frequency when stopping to stores, and customer lists by signing them up for email

lists and loyalty programs.



  • Organizing and making an accurate inventory



A POS can create a better inventory that allows a company to have more than one location and can keep track of their inventory without the need of being physically present. This will prevent employee theft and different pricing inconsistency between different locations.          


The advantages of POS to a business:


General data analytics

A POS can improve a business’ data analytics by evaluating the Return on Investment (ROI) and sales impact of marketing and sales activities. With this information, clients can be in the right position to simulate the outcome of their business’ sales and marketing plans.


Employee management

The business can have a better employee management with the use of the POS system. Some of its benefits include better and easier training processes, better scheduling, enhancement of  accountability, an excellent payroll system, and identification of the top performers within the business.


Tracking of sales and customer information

A POS can track sales and customer data and can give a fully updated information on which goods and products are selling, when, where and what price. It can also collect customer data which tracks their previous transactions. With this, a business can know what products produce more sales which can then be used to boost sales significantly.


Improvement of  sales

POS can improve sales of a business and customer retention. It will help improve a business’ inventory management by showing the owner what’s selling and what’s not. It also improves profitability by telling them what products make money. A POS software can also retain customers by recording their patterns of preferences which can be used for smarter marketing



Businesses that use POS system can track their inventory to some extent. Businesses can create better purchase orders, can monitor both the top sellers and lost sales. A business can also set inventory levels based on their sales history, A POS can also help maintain accuracy in inventory. It can allow the organization to ensure that the records in their inventory match the physical quantity present in their stores.


When a POS is integrated in a business, it can generate a purchase order and allows the owner to reorder items when the inventory  starts to run low. Everything will be an automated system which reduces the amount of work and expense, thus boosting profits and profit margins.


Product selection


With a POS system, a business may know how many products are sold and which items are popular. This is very valuable when restocking products and ordering new supplies. A business can also spot seasonal trends in their products and can stock their supplies to have an advantage of that demand.


Finance and accounting

A POS can help in finance and accounting in a business by ensuring that the operational and financial data is always in balance. It can also eliminate redundant data entry in the system. Audit capability within the business can also be improved.


Security risks


A POS system can reduce security risks. Without a POS system, security breaches may take place, causing highly sensitive and protected information to be leaked such as credit cards and bank account information. This will put the company at financial and legal risk.

POS comes in different forms which include:



  • Mobile POS


POS can be mobile with the organization using a smart device, a tablet, or a smartphone to perform the transaction. With this, a business can implement services and sales in place, thus improving better customer experience. This is also cost-effective and can benefit small businesses by allowing them to have  transactions without the need to invest in electronic registers.



  • Tablet POS


Tablet POS can offer a different amount of value over traditional systems and can help local businesses in different ways. With tablet POS, a business can reduce upfront and long term costs, manage operations properly, offer free instant upgrades, and can seamless integration and helpful tools within the massive structure.



  • Terminal POS


A Terminal POS is a computerized alternative for a cash register. It can record and track customer orders, connect to other systems, process debit and credit cards, and manage inventory.



  • Online POS


Online POS is a cloud-based type of POS which gives a better customer experience. It can improve customer service and it is more accessible and affordable compared to traditional ones.



  • Self-service Kiosk POS


Self service Kiosk POS is an automated POS that allows customers to check out on their own. This will allow companies to save on labor costs and can reduce the waiting time of customers.


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