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What is POS? If you are the owner of a small business, then you must know the answer.
If you are new in the market to set up your business, then your first enormous investment needed to be in the POS system to perform smoothly with your business. A cloud POS system is brilliant for your business and your budget too. It is affordable than ever.
Its all affordable price credits go to the modernization in POS system to adopt Mobile POS solutions, with help of this you can simply manage from your phone or with your tablet without spending much amount to set up a computer for it. However, a Retail POS is much more efficient and powerful than a mobile pos.
In the marketplace, there are many free POS that help to establish your business with no extra charge or with some negligible charges to handle the daily basic transactions of the business.
Table of Contents
POS stands for ‘point of sale.’
The smallest and accurate answer to the question of what is POS is that it keeps track on all the transactions of the business like where and when the transactions take place with accurate reports.
These transactions include the amount which is processed by the retailer and purchased by the customer with the help of an Invoice or with other means which contain all the details.
We find most POS systems in cash counters where firstly cash registers are, but it replaced the lengthy and time taking procedure of maintaining the cash registers and it helps the salesperson to calculate and report the amount needed to be paid by the customer simultaneously.
So what is POS?
POS system is something that helps the retailer in recording the transactions and facilitates all the other activities.
Cash Registers are the major components of this scheme, and all the other components help to complete the transactions.
Like at first we need the product to see for checking the price, which is a customer willing to buy, or for most purchases we perform it with the barcode scanner.
After all this lengthy procedure when the ultimate price is reached, any digital copy or invoice has to be reported to the customer, then they will be able to know the price that how much they need to pay. Then how the customer pays the bill decides which other components of the POS system are going to be utilized.
If they are going to perform the transaction with a credit card, then you must need to have a credit card terminal capable to perform the transaction securely and secure the card’s information secured as well and charging the amount as per the price of the items.
On the other hand, if they are paying you cash then you must need to have changes in your cash drawer, to pass out the returning amount. And when the payment is received, then you came to the last step of issuing the receipt for the purchase that took place. That receipt needs to be printed through another element of the POS system.
There are many other elements are in the list of POS system which depends on the type of transaction or a product or a mode of payment.
To know about ‘What is POS system’, so first, let’s have a look at the history of the POS system.
The first POS system came out as American businesses strengthened from a barter system to cash transactions. Retailers need to record the transactions in their accounting books to know the financial state of their business and to keep their money recorded and safe.
Azel C. Hough had an idea to amalgamate these different needs into the same mechanism. When the first term ‘Cash register’ is used in the market, that was the first remarkable POS system.
A salon owner in Dayton, Ohio, James J. Ritty was disappointed with the customer’s behavior of stealing money, then he makes up the term. He created a machine to record the transactions and a safe place to keep his money safe into his business. The machine worked a lot like cash registers. There are different keys for different amounts, like a key for storing the amount between $1 to $9, and cents in a distinct set of keys.
The large business owners need to be adding the totals from each register to manage their accounting books. IBM released an actual POS system in 1973, which controls over 128 IBM cash registers. It was the first commercial application of peer-to-peer communication or with a local area network, and it was a significant advancement in technology.
And from this point technology takes to lift, MC Donald’s bring in the first POS system and cash registers which works on the microprocessor.
This advancement in technology helps the retailer and customer both. It is good for the retailer because it is easy to record and process the order and it is helpful for the customer also as it helps them by displaying the items that they order.
It helps MC Donald’s to serve better service as by clicking a button the order placed in the kitchen while the customer is paying the total of amount, this POS system helps to provide better service to their customers to make sure that they don’t have to wait for a long time.
Gene Mosher produced the first touch screen affiliate for a POS system in 1986.
Then Martin Goodwin and Bob Henry brought the technology to the modern era, and it took six years for them to create the first POS system that ran on the popular Windows Operating system.
From the ’90s technology strengthens much to match the level of computer and to the level of the internet. POS system reached into their next evolution when cloud technology helped POS system in 2000. And this change is significant for cutting the price down for many varieties of reasons.
Then the data of each transaction and the information of customers are stored in the cloud storage, which helps in reducing the need and the cost of an on-site server. Cloud-based technology of POS system data saves hardware costs in other ways, too. There are very few beforehand costs when the POS systems are being able to be used in the mobiles and tablets.
This advancement in POS system covers more and more business towards itself to make them use the cloud-based POS system or mobile POS system because it is less in amount and it is very flexible to record and analyze the data with much materialized needs.
Now let us discuss the five key eras in the evolution of Point of sale system. Each era brought up a new version of point of sale system with additional features and technologies.
On which thing the most experts are ready to convince? IBM brings the first modern Point of Sale systems in motion.
The system is connected with the mainframe that displays terminals and controlled the processing, at that time machine performs only known limited actions compared to the latest technology but it is enough for them to perform that much on that time and it is a very absolute change for that time.
The machines which were available in the ’70s are not there in the ’90s where technology catches up with more business at that stage. Where computers becoming a major part of every household and very important for any scale of business, and Apple and Windows are fighting to create their hold and name in the market at that time.
POS becomes much more interesting because that makes maintaining the records and manages cash and every transaction with the help of automated computers.
POS system now becomes a part of businesses because now there is no need for different handles to manage the inventory, cash records, and information of customers as all things by automated computers with the help of a POS system.
By the time, POS systems become more and more helpful and many more improvements made through the time as software developers make more important and necessary changes in the system to make it more reliable and helpful in the business to be in the race or to be in the list’s top from competitors.
Point Of Sale system becomes the important part and as well as the necessity for small business chains, for large business, for companies, small business, for retailers or every business it plays a very important role as every business person needs the POS system in their business in the era of late ’90s or the early of 2000s. But the POS system still costly for some business persons to afford the full machine as it costs thousands of dollars. But for the solution is already in the progress to solve expenses for small business owners as well.
The big change that came in the Point of Sale system is because Cloud technology came into the market.
Before cloud technology, POS need to be installed individually in the machine to perform the functions, but when Cloud software came into the market, any of the devices can access the POS system by connecting over the internet. Any internet-connected device can be the POS software for you, you just have to connect your tablet, mobile phone, or your computer to the internet and you can transform it into POS software.
Using POS software in tablets became quite easy for business owners. As they can use POS software from their tablets so they don’t have to invest much amount on the computer or they don’t have to worry about budget at all. Small business owners are also got benefit from using POS software in tablets as they are not in a position to buy a computer for POS software so they use POS software in their tablets with just a monthly fee for POS software.
In every business, handheld technology makes a big change as they improve many services with just one tap, and this change gives lots of benefits to the business owners.
As with handheld technology, business owners can now give better services to their customers. Handheld technology improves the POS systems as they help in connecting to their guests very easily, as with this they can be texted when their order is completed and many things with just one tap.
POS system changes a lot to improve their service to their valuable customers, as they can perform many improvements and many more functions than ever. POS systems of this time like BooksPOS are coming with integrated credit and debit card processing system, gift card and loyalty, table-management, and many other things like this as we can access them over a tablet with POS software in it.
The Future of business with POS systems is now in your hands and you can do many things with it.
As history revealed a lot about POS systems that how many changes occur during the time and how much POS systems strengthened till now. These changes and evolution in the POS system given peculiar types of Point of Sale machines, which suits original business and industries.
Here are the leading POS terminals…
As you have seen in the history of POS, the mobile POS system has cloud technology, which means mobile POS records all the sales and customer information in the cloud storage. For small business owners, this is a boon because it saves all the information in the cloud storage, which means it saves a lot of money for needing an in-site-server to store the data.
Other big companies also have the advantage of the Mobile POS system as it saves the data in cloud storage so for big companies, it is easy to access their data from anywhere of sales and customers’ information. It is beneficial for multiple chain stores or for the franchise companies to access or to track the record of sales from anywhere by using the Mobile POS system and accessing the data from cloud storage.
The advantage of the Mobile POS system is its hardware, like Mobile or Tablet. If you are a salesperson or a field agent, then your most of work is in the field like you have to go from one place to another with your tablet or mobile, so easily you can access the data or you can handle cash transactions as well payments with credit cards with Mobile POS system. It helps your cashiers as they can assist with customers from where they are it helps in reducing the long queues and waiting time.
Retailers or the whole retail industry is the largest user of POS system as they have to maintain the records of transactions, inventory management, etc. because of the scale of business they need many a workstation in every location so they have to manage the data and POS system helps in it, where small business needs only one or two. Retailers use different categories in their POS systems.
Retail stores without POS systems have to go through various components which is too costly and time taking like they need to have a credit/debit card machine, receipt printer, barcode scanner, a cash drawer, pin pad many more things like this.
Big retailers need a POS system as a controlling computer in their back office as they have multiple numbers areas from where transactions take place so they manage all from their back office with the help of the Retail POS system.
Retail POS System is more powerful than other POS systems because they need to handle many numbers of processes like special orders, return of the product inventory management, transfers, rewards, etc…
Contingent upon the sort of POS system, there are various POS hardware choices to browse. This rundown separates a portion of the more famous and all-inclusive alternatives used by a wide number of different organizations and kinds of systems.
Warm printers for POS frameworks fill two essential needs. The essential one is for the printing of receipts. The second use for a warm printer is to print standardized identification names. There is the printer for every budget at high-end machines are too costly, for businesses that don’t have many expenses for them in range products are also available.
The retail location show is normally the centre of your POS framework. It is the tablet, touch screen, or another PC gadget that you are using to put requests and interact with the deals. Because of the tremendous number of alternatives for these gadgets, the costs range the entire range. A tablet PC could just two or three hundred dollars, however, a fixed POS terminal PC could be a few thousand dollars.
A money cabinet is a fundamental piece of pretty much every POS framework. As its name recommends, it is the cabinet where cash is set, and we draw change from. These drawers associate with the POS PC and open when change is required, which forestalls robbery. Cash drawers are not too costly, small business owners can also afford them.
The instalment terminal is utilized when a Visa instalment is being made. The part peruses the card using swipe or supplement (for the more current, chip cards). They are frequently client confronting, or on a turn, so the client can include their pin on the pincushion.
A portion of these gadgets requires a pin cushion to be bought independently. There are a variety of choices for instalment terminals. Card readers are not too costly if you need a complete payment terminal then it is costly.
A standardized tag scanner is vital for most retail locations, particularly on the off chance that they bargain in high volume or have heaps of traffic, where long line times can be an impediment. They help speed up the interaction by checking at the cost, rather than the clerk physically contributing to the expense of everything. These equipment choices and sorts of POS frameworks may appear to be overpowering, which is the reason many new POS sellers are making shrewd instalment terminals.
For example, BooksPOS has a terminal that can follow up on its own, or coordinate with your current POS framework, one more development to the question of what is POS? It fills in as an instalment terminal, can deal with any advanced instalment alternative, print receipts and significantly more. By joining it with the correct POS programming, you’ll have an across the board framework that is smooth, proficient and deals with the entirety of your business.
Since you know the response to “what is POS,” it’s an ideal opportunity to choose the correct retail location for your private company. Start using BooksPOS today, with no risk or upfront cash.
Our BooksPOS system will prove the best software for your business. It offers you cloud-based ERP and POS software for retail. In addition to this, our software syncs inventories and orders across all marketplaces. It can be your brick and mortar stores, e-commerce websites, and marketplaces. Over and above that, it adjusts your inventory whenever a sale happens.
Our system is easy-to-use and affordable as well. It allows you to manage all your operations in central, could-based software. Moreover, it provides you with semi-integrated secured P2PE (point-to-point encryption) payment options. BooksPOS offers you to run all your franchise stores seamlessly from any location.
BooksPOS is a fully integrate and compatible solution for your retail. No matter how big or small your business is, our system is compatible and has a solution to fit. It easily stands on your needs to the best above all.
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