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Why You May Want A POS System For Your Business

POS systemYou might have been in business for many years and have perfected your entire business process, or so you think. It is possible for veteran entrepreneurs without a Point of Sale (POS) system to think that they have it all under control just because they’ve run their businesses for as long as they can remember.

The tendency for such people to look for new improvements might be slim, not knowing how much they may be hurting their businesses. Other entrepreneurs who hurt their businesses are those who think that their firms are too young to invest in a POS system. These entrepreneurs think that they should deal with other aspects of the business first, and then get on to other things such as finding a Point of Sale system. If you are an entrepreneur and you don’t have a system in place, you could be making a significant mistake.

It Will Track Your Sales Effectively

According to the Entrepreneur, a POS system will track every sale you make in your business, and help you to know which items you should buy more frequently. A good system will even help you to understand people’s seasonal shopping patterns, which will put you in a position to stock your shop from a point of knowledge.

Additionally, for businesses that rely on employees on hourly wages, a Point of Sales system can guide you when you need more staff, and when you can make do with fewer. The ability to better manage inventory and staff levels will help you to save small amounts, which in the end will add up to huge savings.

It Can Curb Employee Theft

It is almost impossible to tell which employee is stealing from you just by looking at their faces. It is also difficult to detect theft in your business if you deal with a lot of stock and you don’t have a system in place to help keep track of the entire inventory. With a reliable POS system, it is possible to get to the bottom of the difficulties with inventory. Your POS system will help you to discover irregularities when some employees are on shift. The irregularities will help you to narrow down to the members of staff who may be stealing from you, regardless of the amount they steal.

You might also consider implementing a progressive discipline policy within your organization as a method of preventing employee theft and other issues. Start by outlining what is expected of your employees by introducing a code of conduct. Next, define the punishments that will occur when these rules are broken. In a progressive system, the punishment gets worse each time an employee breaks a rule. Your policy will likely include punishments like verbal warnings, written warnings, a performance improvement plan, and, finally, termination. When your employees know exactly what is expected of them, it makes it much easier to follow the rules.

It will Improve the Efficiency of your Staff

Most POS systems, like Shopify offers, come with highly advanced features and software integration, making them very user-friendly. Your cashier will find it easier to sell numerous products without making a mistake. Newer Point of Sale systems are much easier to use compared to the earlier ones in the market since they eliminate the tedious process of keying in numbers.

The amount of time that your staff will save on a single sale will enable them to serve the customers faster, more efficiently, and more effectively. According to Pinnacle Hospitality Systems, a POS system will also save your staff the amount of time they used to spend reconciling receipts with the stock that was sold, whether during a regular or irregular sales period. When your cashier checks out an item, it reflects in the system and completes the behind the scenes process.

It Will Keep a Record of Customer Purchases

This aspect of a POS system will come into play in the event of a customer returning a product to your store. A good system will help you to identify the product, the time of purchase, and if you have cameras, you can see the customer making the purchase. Without a system, you would have to either trust that the customer did indeed purchase the product from you, or refuse to take it back and lose a customer. If you are a retailer, then you will consequently return the product to the manufacturer. However, if you are selling your own product, you will work on solving the problem before releasing the product.

It Will Help You Deal With Discounts

When you are giving your customers a discount on a particular product, you need to figure out how much the discount’s for and then adjust your accounts appropriately. Without a Point of Sale system, every purchase that has a discounted item will be a headache for your cashier. Furthermore, the discounts will reflect on your receipt at the end of the day or at the end of the month, which will explain any difference in expected and actual income.

There are many POS systems out there, and you can find the one ideal for your business. As you go out in search for such a system, make sure that it has features that meet the specific needs of your business.

 

 

Photo courtesy of: Miki Yoshihito

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John Schmoll is a Dad, husband and veteran of the financial services industry. He's passionate about helping people learn from his mistakes so that they can live lives free from the shackles of debt and empowered to make their money work for them. You can check out his other sites: Frugal Rules, for ways to improve your financial literacy; and Sprout Wealth for tips on different ways to make more money. John has been featured on Forbes, Lifehacker, Yahoo Finance and US News & World Report and more. If you're wanting to grow your blog, check out my blog coaching services to see how I can help you take your site to the next level.

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