Whether operating at a small scale or a larger one, a retailer needs to maintain close vigilance on what enters and exits their treasury.
This is where cash management systems such as cash registers or POS systems come in handy. These cash management systems are used to keep track of daily cash flow, as well as manage inventory.
However, the real deal breaking question is what’s the difference?
Cash Register System
This is a traditional method of recording financial transactions by retailers that have been in use for a pretty long time. Best fitting the need of small scale retailers, this system of cash management allows retailers an accessible and systematic place to keep the money. Electronic cash registers also allows retailers to calculate items and taxes as well as print your shop’s logos. The best part is, all the information is directly transferred to your financial software.
Point Of Sales System
An advanced cash management system, POS systems provides an ability to scan the data right out of the product, which is perfect for mass scale retailers. They often come with custom computer systems and inventory management software, which keep tabs on the items sold and automatically updates the inventory. The POS system is smarter than the traditional system and recognizes and differentiates items of promotions, sale, discount, specials and even customer loyalty cards. This removes the chances of guesswork errors.
The reason why POS systems have evolved to become such an integral part of retailing business is because of their ability to operate transactions through debit and credit cards; a function the traditional system fails to perform.
Why POS Is Better Than the Cash Register System?
Keeping up with the Customers
One of the essential elements of running a retail shop is to store in all the customer information, their purchase history and the current purchases they made. A cash register fails to do so, but of course, a POS system saves the day! This system has added benefits because it sets reminders according to customer’s purchasing history and notifies your customers automatically as well. In case a customer wants a refund or exchange, this system allows the retailer to identify them as authentic as well.
The POS system is directly integrated with your financial management software. This makes POS quite an efficient device as it transports the necessary information regarding the revenue and inventory data which allows you to generate annual reports. However, even within the system, you can keep tabs on the monthly and even daily patterns of sales, which gives retailers an idea of what product fits the need according to the time or season of the year.
This brings us to the next most important factor of retailing business- stock management! A POS system’s advanced technology, unlike that of a simple cash register, keeps track of the leftover inventory, notifies for restocking and is capable of creating a COGS report itself.
Looks like it’s time for you to get a POS System for your own shop! Hit us up at MCR POS System Solutions and get yourself one now!