How does a Point of Sale System work?

A Point of sales system helps a business reduce paperwork while tracking inventory. From transaction details to recording sales, POS systems perform versatile functions that accommodate to a specific business needs. Previously POS systems were only deployed by larger retail businesses however currently they are being used by smaller businesses as well.

There are some fundamental modules and common features shared by all Point of Sales systems. Therefore to understand its functionality, it’s imperative to be familiar with these fundamentals.

Basic Components

Generally in a POS system, there is a single centralized server connected to various terminals depending upon the quantity of checkout stations. At the checkout station, cash drawer, credit/debit card swiper, pin pad, receipt printer and a keyboard for data entry. For quicker service, many businesses deploy a barcode scanner as well. Additional components include a card reader, customer display and checkout scale.

For an exquisite customer experience, many POS systems offer touch screens for user interface as well. Previously, POS systems were hardware eccentric as businesses needed to purchase hardware in order to utilize the complete solution. Nowadays, mobile and wireless technology has enabled smart phones and tablets to provide the user interface. It’s quite a cost-efficient method and is gaining popularity amongst smaller businesses with limited resources.


POS software ensures smooth conduction of operation and sharing of information between different hardware components. It stores the necessary customer information and record while managing the database of the system. Few software programs are quite generic which can be used in various industries however some are customized for a particular market only. Pricing of the software can vary according to the various features and customization options they provide to their clients.

Functionality of the System

There are multiple features available in a POS system that allows businesses to keep track of their progress and base their decisions on factual data. Accurate reporting to keep track of the inventory item details is a basic feature in all POS systems. One doesn’t need to perform manual inventory counts as the system gets updated automatically. You can also integrate your POS system with accounting to monitor credit/debit card swipes and amount earned through them. This helps greatly with tax returns and will ensure a fool-proof system.

With the extensive features offered by a POS system, it is indeed a sound investment for any business of any scale.

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By | 2017-08-02T16:29:15+00:00 August 1st, 2017|Articles|0 Comments

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