How Does a Point of Sale (POS) System Work?

INTRODUCTION:

Point of sale (POS) system is being widely used today by businesses as a way to make transactions, record sales and track inventory. POS can do a variety of other functions depending on what specific needs the business requires.

In the past years, only huge companies and retail chains are predominately using POS but now this technology is being utilized by many small to mid-sized businesses as well. A lot of people are wondering though how does a POS system work? Well here are the fundamental and common features of a POS system.

What Are The Components of a Point of Sale System?

Server Terminals Keyboard Cash Drawer Credit/Debit Card Swiper Pin Pad Receipt Printer Barcode Scanner

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With the advancement in technology some recent systems offers touchscreen for a more fast customer assistance. The power of mobile and wireless technology is also being utilized and added to new version of POS systems and devices like tablets and smart phones.

About the Software

The components above will be used in conjunction with POS software, which will save information and allow it to be used within a database. The features of software can change considerably depending upon the industry. Some software can be used across numerous industries, while some only focuses on a single niche. In terms of pricing, there can be a big disparity. Basic platforms will only cost a couple hundred dollars, while others can be over thousands of dollars.

Key Functions of a POS

From the software database, there are a multiple of functions that can be done to manage many activities of a business. For begineers, you can keep track of sales to see the quantity of items sold and how much money was earned. This can be used to compile daily, weekly, monthly, quarterly, and annual reports with a high degree of accuracy.

Inventory management is another a key function. This will help you know the quantity of items you have in stock. This feature is beneficial not only because it simplifies the process of keeping up with inventory but it gives you the power to do it in a snap.

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Yes, rather than having to perform manual inventory counts, it can now be done for you by the POS software, fast and easy. The process is that every time a product is sold, the system is updated automatically. That way you’ll know whenever something is running low so it can be reordered in time to keep up with consumer demand.

With all of these great features that can be done with a POS system in Singapore, we can all conclude that it is a good investment for your business.