Cash Systems Compared

POS Systems Definition: What is Cash Register Software?

POS systems can be described as modern cash registers. In some cases, they still operate with a fixed cash register machine, but often they are more mobile solutions. There is then at least one portable terminal and associated cash register software.

Almost any digital device can be used as a cashier base, from a PC to a tablet or smartphone and special cash terminals. Depending on the needs or the company and industry, users also have the option to connect various additional devices to the cash register system. These include, among other things, receipt printers, barcode scanners, card readers, or even a scale.

Today's retail, restaurant, service, or hotel POS systems can do much more than "just" process transactions. They sometimes come with a truly impressive range of functions, which an old-fashioned cash register is never able to deliver: A POS system with accounting, merchandise management, reporting features, and interfaces to the tax office or other clever functions is not unusual. But of course, there are also much smaller cash register systems.

No matter the scope of a digital cash register, its use means, at best, simpler and increasingly automated sales processes. This makes POS systems a significant factor for pushing business efficiency for small businesses as well as larger companies.

In English, digital cash register systems are called Point-of-Sale software (POS). This terminology is also becoming increasingly common in the German market. So, don't let yourself get confused.

Retail POS Solution vs. POS System for Hospitality in Comparison The market offers numerous specialized industry solutions to use a cash register system digitally. Retail POS software and POS systems for the food service industry are especially widespread in comparison. This is also reflected in the above list of the best cash register systems. The differences lie especially in the fundamental system orientation and range of functions.

A POS system for the hospitality industry is often a mobile solution that works with a central terminal. More and more, smartphones are being used with corresponding software to bill orders. Orders are usually taken directly on the mobile device and forwarded to the kitchen. You'll also find menu-building and seating plan features here.

In retail, such a mobile payment directly to the customer anywhere in the store is also possible. However, here, centrally placed cash registers are still more common. It's especially useful for retailers that a specific point of sale system can automate inventory management. The programs reconcile sales with stocks, ensuring a sufficiently stocked warehouse.

In addition to these two special variants of cash register systems, there are standalone solutions for service providers, such as hairdressers or beauticians, as well as for hotel businesses. You can also purchase a cash register system for a small shop or a cash register system for small businesses and digital cash registers for larger companies. The latter brings with it multiple terminals, correspondingly powerful merchandise management systems, rich CRM capabilities, and more.

Why Should Companies Rely on a POS Provider?

The sale of goods, services, or even prepared dishes always involves a variety of other processes than the mere transfer of corresponding offers for money. Of course, the relevant transactions must primarily be secure, compliant with the law, uncomplicated, and in the interest of customers.

In this context or afterward, however, it is also necessary to keep an eye on the stock, possibly reconcile online and offline sales, carry out the accounting or tax-related aspects correctly, accurately support customers with questions about purchased products, and skillfully market. All of this is traditionally associated with a lot of manual work or requires different programs that might hardly harmonize.

A modern cash register system helps process these and other typical tasks. It centralizes all payment requests, including tax matters, communicates directly with the acquisition of new products or raises the order, stores data on past purchases that can ideally be used for support purposes, and sometimes even has specific marketing features on board.

This makes the sales processes more efficient (speed and automation), more sustainable (support and customer satisfaction), and safer (transactions according to common standards and tax reliability).

How Does a POS System Work?

There are primarily two types of POS systems: On-Premises solutions and Web POS systems.

On-site installed POS systems, also known as legacy POS systems, usually consist of a desktop computer or a cash terminal and other hardware and appropriate software. These systems have to be updated manually and regularly maintained by their owners. The security measures and data storage take place in the company's own premises.

Cloud-based POS systems are more practical in comparison. They are completely hosted digitally in the cloud and connected with hardware such as smartphones or iPads. The latter can then be used at the counter or at the table. The maintenance of such solutions is largely in the hands of the respective provider, which means many fewer worries for users.

How the respective cash register system works in detail, of course, depends crucially on the functionality offered. The following features are typical.

• Inventory Management: Every company that sells goods requires some type of inventory control system. With a POS for retail, users can update inventory in real-time while transactions are being made. With every purchase, the issued goods are deducted from the available stock, so managers can see at the end of each day or week what needs to be replenished and what isn't selling quickly. If a company runs a store as well as an online shop, the software can keep an eye on total stock and ensure that no orders are processed without the required items.

• E-Commerce: Buying items online has become the norm, if not the standard. Thus, setting up an online shop should at least be on the radar of every retail company. Many retail POS systems are now able to integrate into e-commerce platforms. Some even offer online store building tools. As the inventory data is stored in one place for physical stores and online, a false offer on both platforms is not to be feared.

• Loyalty Management: Building and retaining a customer base is crucial for both retailers and restaurateurs. A specific loyalty program encourages customers to return and attracts jumped customers to re-engage. Some POS systems support customer loyalty management with different features. By linking customer profiles with the credit card and other purchase information, the solution can automatically grant a discount when regular customers make a purchase. They do not even have to present a coupon or something similar.

• Modern Payment Methods: In an increasingly paperless world, digital transactions are becoming the standard. Modern POS software makes it easier to process such bookings. It provides interfaces to target group-specific payment methods - from credit cards to Apple Pay and others. While charges are almost always incurred for this, they are usually completely negligible compared to the customer satisfaction and image boost that can be achieved.

• Reports and Analysis: Insights into one's own business are a crucial puzzle piece in success planning. Many cash register systems offer corresponding reporting and analysis functions, so business owners get a comprehensive overview of their business. Based on customer and purchase information, these controlling features can help companies save money on inventory and plan and create growth.

• Marketing: Marketing is a key factor for the success of a company. Thus, the fact that some POS systems have specific marketing functions can make a big difference. For example, there is the option to capture email addresses at the checkout and then create newsletters or special email offers for customers - all within the platform.

• Hardware: Many cash register systems come with hardware options such as cash registers, tablets, card readers, and receipt printers. The components are almost always expensive, so they have to work perfectly with the acquired software. It is also important that the hardware is reliable and durable, as, in an ideal world, it will be used a lot. The costs are generally worth it, as corresponding equipment allows much more efficient work.

• Accounting: For every company, it is important to keep track of how much money is coming in and how it is used. The accounting functions of a cash register system make it easy to monitor each transaction, track purchases, and keep general costs in mind. The better a company's finances are organized, the easier it is to focus on daily operations.

Which Advantages and Disadvantages Do POS Systems Offer?

Clear advantages of POS systems have already been highlighted above. In particular, the increase in efficiency and the safety of payments are very weighty arguments for such solutions. Last but not least, the possibility of a more holistic handling of payment processes and various processes centrally associated with them contributes massively to the fact that more and more people in charge choose a digital cash register system online or on site. The comprehensive advantages associated with this are summarized below.

• Advantages for Business Owners: With cash register software, owners can control and monitor their sales in detail. It enables them to check the inventory and also to follow the behavior of the staff based on data without being on-site. Plus, with specialty functions such as loyalty programs including gift cards or customer rewards and marketing and advertising options, it helps to increase overall business success.

• Advantages for Staff: POS software assists in processing purchases or taking orders, transmitting relevant data to inventory management or the kitchen, and allows faster purchase or service processes. A POS system helps managers optimize their offerings. It indicates which products or dishes are not going particularly well and which ones are burners. Some programs also include time-recording functions, where staff logs in and out at a POS terminal according to the respective schedule. Overall, POS solutions provide more financial security and a rationalized (personnel) management.

• Advantages for Customers: The results of all actions taken by a POS software ideally lead to an increase in customer satisfaction and customer loyalty. Shorter waiting times, options for cashless payment, the correct execution of orders, special offers and discounts, and customized service based on data are some of the strongest benefits customers can receive through a well-coordinated POS system.

Even the best cash register system for the food service or retail industry can bring with it certain disadvantages. However, the term "disadvantages" is somewhat drastic. As long as a fundamentally suitable solution is chosen for the company context, it should not really harm business processes. However, it is possible that certain barriers may occur. The following challenges are typical.

• Establishment: Especially when analog sales processes may have been ingrained over decades, it can become very difficult to successfully establish new cash register software. Ideally, all relevant employees should be brought on board with the selection process and their pain points and needs must be taken into account. Thorough training on the new system is also very important. If the solution is not fully accepted, it can never unfold its potential.

• Internet Connection: Many POS systems require a constant Internet connection. If the network suddenly fails, it can lead to problems with accepting orders, processing orders, processing payments, etc. Ideally, you should rely on a program that can also function without an Internet connection, at least in the short term.

• Fraud/Security Problem: Cash register systems allow customers to use multiple payment methods. Unfortunately, the increased use of cashless options also brings an increased risk of hacks and other attempts at fraud. So those in charge should definitely make sure that the chosen solution meets all common security standards.

Find the Best Cash Register System: What Should You Pay Attention to When Comparing a Restaurant Cash Register System or a Retail POS System?

The market is full of good, feature-rich cash register systems - but not every solution is perfect for all business contexts. To make sure you choose the right offline or online cash register system, you should pay attention to the following things at the very base.

Choose a POS System Specific to Your Industry Those in charge should mainly ensure that they choose a POS system tailored to their industry-specific needs. The payment processes and procedures around them differ widely between hotels, services, retail, restaurants, and other businesses.

A retail store typically needs a powerful inventory management system, while a restaurant needs to manage tables and hotels need to organize reservations. No program is ideal for all areas. To be able to get the maximum effectiveness and efficiency, it is important to choose a POS system that has been tailored to your own industry.

Narrow Down Specific Business Needs Before those in charge examine their options for cash register systems, they should define the characteristics, functions, and services they are targeting for the optimized management of their sales processes.

The main problems, such as long queues due to slow transaction processing, difficulties with inventory management, or inaccurate reports, should be filtered out first. From this, those responsible can finally conclude which tasks a POS system with specific functions should simplify.

Determine Essential Integrations A POS system is ideally a key support in carrying out and managing day-to-day business. Therefore, it is crucial that it has all the functions and integrations required for smooth operation.

Good cash register solutions can do a lot internally on the platform - but they are not omnipotent. Therefore, the ability to connect to other specialized services is essential. Those responsible should ensure that the chosen solution interacts optimally with all needed external programs.

Important connections typically occur in the following areas:

• eCommerce
• Marketplaces
• Accounting
• Warehouse management
• ERP
• CRM
• Marketing

POS Systems Prices: What Do POS Systems for Hospitality and Retail Costs?

There is a wide price range for POS systems. Corresponding programs can be obtained starting at about 30 euros. But with hardware and larger functional scopes, they can quickly go into the thousands.

How much a POS system actually costs depends heavily on the hardware used or also purchased. Here the number of devices needed also obviously plays a crucial role. The question is also: How much does a cash register or what do other needed components cost aside from the mere cash register software?

The more extensive the equipment, the higher the costs are in a self-explanatory manner. A luxuriously equipped cash register system with a cash terminal and mobile devices quickly amounts to about 2,000 euros. Monthly software fees and possibly hardware maintenance contracts will also be added. Mobile cash registers or systems that are based on PC and smartphone can be purchased significantly cheaper. With about 40 euros monthly, interested parties are in.