A Small Business Owner’s Guide To POS Systems

Close Up Of Female Employee using a pos system

May 31, 2022

Whether you’re starting a new business or managing an existing one, it’s crucial to have the right point of sale (POS) system put in place. This system will allow you to process cash and card payments in a flash to keep customers happy and your business running smoothly. In order to keep up in an ever-evolving tech world, having up-to-date POS systems should be one of your main priorities. Today we want to present a small business owner’s guide to POS systems.

Like any technical system, there’s a lot of information and choices out there. To help you navigate the world of POS devices, we’ve provided some basic information along with some industry-specific advice for choosing the right device that best suits your business.

What Is A Point Of Sale (POS) System?

A point of sale (POS) system consists of both purchasing devices and software that allows consumers to complete a transaction. Common devices that are used in POS systems include barcode scanners, credit card readers, tablets, mobile computers, computer monitors, receipt printers, and cash registers. Then when it comes to software, common choices for small businesses include Square, eHopper, TouchBistro, Vend, Shopify, and ShopKeep.

Important Note: These systems are not one-fits-all solutions and will need to be set up in a specific way to meet the needs of your business.

How Do POS Systems Work?

The main function of a POS system is to process payments and manage sales. This sounds pretty straightforward, but there are various ways you can set up your system that ranges in complexity and require different devices.

Some of the older POS systems use cash registers, swipe card readers, and bare-bones purchasing software. There’s nothing wrong with using an older system, it’ll get the job done, it just won’t be as effective as some of the newer systems on the market.

Many of these newer systems are completely digital, allowing you to process payments from virtually anywhere. Many of these systems utilize tablets, mobile computers, and portable card readers. They also allow you to easily create discounts, manage inventory and track online sales. The more insight you have into sales analytics, the better you’ll be able to serve your customers.

Woman using a POS System. The store can help her because of their guide to POS stystems.

How Do I Choose The Right POS System For My Business

Now that we’ve covered the basics, it’s time to dive a little deeper into how to find the right POS system for your specific industry. Each industry comes with its own unique challenges. You’ll need a system that is not only capable of handling those challenges but will also provide you with the right tools to excel in the industry.

The Best POS Software for Retail

To have a successful retail business, you’ll need to choose a POS system that offers the ability to set and manage prices easily, keep track of inventory, collect sales data and build reports. Currently, the best POS system on the market for retail businesses is Vend. This system offers a user-friendly interface that integrates seamlessly with your purchasing devices. All payment data is synced to the cloud allowing secure and easy access from virtually anywhere.

The Best POS Software for Restaurants

If you’ve ever worked in or managed a restaurant, you know that things move fast. The last thing you need to worry about is a slow POS system. Ideally, you’ll want a system that can handle online orders, reservations, order tracking, and bill splitting. Right now, the leading POS system on the market for restaurants is TouchBistro. This system helps to streamline and simplify restaurant operations by providing easy management of the dining room, kitchen, and guest engagement.

Waitress standing at bar counter and using pencil while adding order in restaurant POS system.

The Best POS Software for Service Providers

Whether you’re a massage clinic or a carpenter, you’ll need a way to process payments quickly and effectively. The best all-around POS solution for the service industry is Square. This flexible system allows service providers to collect payments in-person, online, and on the go. It also offers special features such as loyalty programs, email and SMS marketing, and a message hub.

The Best POS Software For Online Sales

Some of the most successful small businesses of today operate entirely online. If this is the direction you’re wanting to take your business, you’re going to need a secure payment system that is easy to use on the front end and back end of your website. One of the best and most affordable POS systems for online sales is Shopify.

This system allows you to sell, ship, and process payments from the comfort of your own home. Not only will you be able to easily manage products, but you’ll be provided with insightful sales data to help you make more informed business decisions.

Our POS Systems Secure?

With the advancement in technology, more and more systems are transitioning to an online environment. With this transition, business owners must take proper measures to protect customer data. A breach in your POS system could end up costing you millions of dollars due to stolen financial information and loss of consumer trust.

The best way to ensure that you’re putting a secure POS system in place is to spend time researching and comparing different POS software packages. All of the software options mentioned above include PCI compliance, meaning that they abide by a set of strict security standards when it comes to processing and storing financial data.

Here Are A Few Quick Tips For Maintaining A Secure POS System:

Implement application whitelisting.
Keep POS software up-to-date by installing software updates.
Perform regular vulnerability testing to identify weaknesses.
Closely monitor all activity within your POS software.
Use secure passwords and two-factor authentication when possible.
Run antivirus software regularly to scan for software breaches.
Hire an IT professional who specializes in cybersecurity.

How Do I Service A POS System?

Choosing the right POS system is the first step, now you’ll need to maintain that system and keep it running smoothly. All of the best POS software packages will include personalized customer service. Any time you have questions or run into an issue, you should be able to reach out to your service rep for assistance.

When it comes to POS hardware, it’s a little trickier. Oftentimes businesses use devices from different manufacturers. For example, your cash drawers may be from APG while your handheld scanners are from Honeywell. Each manufacturer usually has its own system set in place for getting devices serviced and it’s not always the easiest or most cost-effective route.

At TSI, we streamline the process of getting your POS hardware serviced by accepting all types of devices from various manufacturers. So back to our example, if you needed to get both your cash drawers and barcode scanners serviced, you could purchase one of our service programs and have them worked on in the same location. This will take some extra steps out of the process, saving you valuable time and money.

Guide To POS Systems FAQs

Q: What Is A Pos System?

A: A POS system is a combination of hardware and software that allows consumers to complete transactions. It typically includes devices such as barcode scanners, credit card readers, tablets, computer monitors, receipt printers, and cash registers, as well as software such as Square, eHopper, TouchBistro, Vend, Shopify, and ShopKeep.

Q: How Do POS Systems Work?

A: The main function of a POS system is to process payments and manage sales. Older systems may use cash registers, swipe card readers, and basic purchasing software, while newer systems are completely digital and can be used from virtually anywhere. These systems allow for easy creation of discounts, management of inventory, and tracking of online sales, giving businesses valuable insights into sales analytics.

Q: How Do I Choose The Right POS System For My Business?

A: Different industries have unique challenges and requirements, so businesses should choose a POS system that can handle those challenges and provide the necessary tools to excel in their industry. For example, retail businesses may benefit from Vend, while TouchBistro is ideal for restaurants, and Square is a good choice for service providers. Shopify is a great option for businesses that operate entirely online.

Q: Are POS Systems Secure?

A: As more systems move online, it is important for business owners to take measures to protect customer data. All of the software options mentioned in this guide are PCI compliant, meaning they abide by strict security standards for processing and storing financial data. Business owners can also maintain a secure POS system by implementing application whitelisting, keeping software up-to-date, performing regular vulnerability testing, closely monitoring activity, using secure passwords and two-factor authentication, running antivirus software, and hiring an IT professional who specializes in cybersecurity.

Q: How Do I Service A POS System?

A: The best POS software packages include personalized customer service, so businesses can reach out to their service rep for assistance. When it comes to POS hardware, businesses can streamline the process of getting devices serviced by using a service provider that accepts devices from various manufacturers, such as TSI. This can save time and money by allowing businesses to have all their devices serviced in one location.

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