POS System vs Cash Register: Choosing the Best Way to Manage Your Retail Business
All retail businesses require a cash management system to accept payments from customers. While small businesses can get away with cash registers; however, most businesses need to incorporate POS systems. Both methods are used to carry out transactions at retail businesses, but they come with specific features that can make or break your customers’ shopping experience. If you are wondering which option to go for, we will explain the benefits of using each of them and what makes one stand out from the other. So, if you are running a retail business, keep reading this article! But first, get connected to MetroNet for seamless connectivity at all times.
What is a POS System?
The point of sale (POS) system is used when a customer performs a transaction while checking out at a store. With time, POS introduced new features, such as contactless payments, inventory management, gift cards, and third-party loyalty programs.
Benefits of Using POS System for Retail Businesses
Check out some of the best features and benefits of using a POS system for retail businesses:
- POS systems store purchase histories, which makes it easier for businesses to track payments, even weeks or months later. In addition, this feature can be used to find out the list of loyal customers of a company to offer promotions, coupons, and exclusive discounts
- Allows management of inventory according to each item’s type, size, and color
- Calculates the cost of shipping an item to a certain address
- Generates reports using business intelligence techniques to visualize information related to finances and note down the busiest hours of sales throughout the day and week. Moreover, it helps determine which employees work efficiently at the store, the results after running promotions on products, and the fastest selling items
- Best for businesses that require payment processing while onthego. It is much more flexible and portable than any other options available for retail stores. Besides, it can be used on a wide range of devices, including desktop computers, laptops, iPads, and even Macs
What Is a Cash Register?
Cash registers are used in businesses to record the amount of money received through each sale. It may include transactions made at a store so that the business can see how much money is taken or given while selling products.
Benefits of Using Cash Register for Retail Businesses
Here are some of the advantages of having cash registers at your retail business stores:
- Cash registers are much cheaper and easily accessible than the rest of the options available for retail businesses. It may require you to pay as low as $100 to invest in cash registers, which can be very convenient for small businesses
- You don’t need a professional to operate them as they can be used by anyone. Even if your retail store staff does not have enough knowledge or expertise in technology, they can still make use of cash registers
- They are perfect for businesses that prefer using traditional methods for payments. If you are running a small store that incorporates a simple payment process, a register-based system is ideal to record sales and process payments
- Only authorized users can access cash registers, which makes them one of the safest and most secure ways to track transactions in a retail store. Nobody can steal the information related to the payments; therefore, you don’t need to worry about data breaches by intruders
- Built-in capabilities in electronic cash registers eliminate the need to add the tax to the total amount every time a purchase has been made
Which One Should You Go For?
We have summarized some of the key features of POS systems and cash registers so you could see the clear differences between the two:
|POS System||Cash Register|
|Acceptable Payment Options||Online payments, ACH, cash, and gift cards||Cash|
|Type of Information Stored||Tracking of inventory, business data, and financial transactions||Sales transactions and the amount received and returned|
|Available Types||Electronic, open-source, mobile, tablet, online, self-service, terminal, and multichannel||Electronic, mechanical, cloud-based, mobile-based, browser-based, and manual|
|Starting Price||$0-$230 per month||Around $100|
Now that you have known all the information regarding the two systems, it’s time for you to decide which one is suitable for your business. If you are confused between the two options, then answer the following questions:
- What are the challenges that may arise in your retail business?
- How many customers arrive at the store throughout the day or week?
- How many products are sold per day or week?
- How many products do you need in your store to accommodate your customers?
- What are the issues associated with the current setup of your business?
- Once you find answers to the abovementioned questions, it will become easier to determine which one goes with your business, based on its unique requirements.
With a MetroNet Internet connection, you can make use of a POS system, which can help effectively manage your business. But, if you have limited resources, you can choose a cash register.
Choosing the right way to manage your business sales, finances, and inventory, you must know the needs of your business. Next, find out the features of the POS system and cash register listed above to understand which one is well-suited for your retail store. As long as your chosen mode aligns with your budget, you can go for it to allow sales reporting, customer management, inventory management, and even employee management without any hassle.