At one point or another as an entrepreneur, you must put in place a proper cash management system for your business. It doesn’t matter if it’s the traditional electric cash register or the elaborate computerized POS.
But what better than killing two birds with one stone and getting a cash register that is also a point of sale?
How ideal is a cash register that is also a point of sale for businesses?
A POS cash register is suitable for any kind of business as it makes it easy for business owners to run their operations more effectively.
But what options do entrepreneurs have if they can’t get a cash register that is also a point of sale? Should they opt for a cash register or a POS system? In this article, we’re going to compare both options to help you better determine the best choice depending on your needs.
What is a cash register?
A cash register is basically a machine that has a money drawer that most businesses use. This machine indicates the amount of each sale and also records the money received.
In addition to creating a record of all the money that comes in and goes out, a cash register may also be used to:
- Calculate taxes
- Generate receipts
- Offer basic sales tracking
Cash registers are great for small businesses that only need to ring up sales, run receipts, and receive cash, checks, or credit card payments. They’re also quite affordable – you can get such machines for approximately $100 or more.
A cash register is also an ideal option in places with limited or no internet connection.
What is a point of sale system?
A point of sale (POS) system may be described as part of a “check-out counter” where items are bought. These are basically the mechanisms that customers and retailers use to execute a purchase.
A simple yet comprehensive description of a POS would be “a cash register on steroids.” These systems can do everything that a normal cash register does and give a more detailed report on the transactions. Thanks to technological advancements, POS systems can integrate with other business tools such as accounting or inventory management software. Some of the additional components used with a POS system include:
- Touch-screen interface
- Barcode scanner
- Credit card reader
- Chip reader
- Server (the cloud)
If you are looking for a couple of extra functions that aren’t offered by cash registers or a cash register that is also a point of sale, you should dig a little deeper into your pocket and get a POS system. Altogether, the hardware for a POS system can cost about $1,000 to $5,000.
POS systems are ideal for brick-and-mortar businesses such as restaurants and boutiques because they make inventory tracking and customer management easier.
Benefits of cash registers and POS systems
For most businesses, whether they get a cash register, a POS system, or a POS cash register entirely depends on the budget. This means that you need to do your homework well before making the decision. Here are the benefits of each option:
Benefits of a cash register
- Low initial capital
- Easy to use
- Performs the basic functions
- Long-lasting
Benefits of a POS system
- Improved accuracy
- More detailed reporting
- Inventory management control
- Customer relationship management (CRM)
- Features marketing tools
- Offers royalty programs
- All-in-one system
The differences between cash registers and POS systems
On the surface, it looks like these two are similar but that couldn’t be further from the truth. Let’s take a look at the distinctions between the two:
Ease of use
The cash register and the POS system are all relatively easy to use. A point of sale cash register is also not complex and requires minimal training time as it’s designed for use in a fast-paced retail environment.
A cash register has manual buttons where the retailer enters item codes and/or prices. On the other hand, a POS system requires a touch-screen to operate.
Features and functionality
Cash registers come with a secure drawer where you can store your money. If you like you can customize these machines based on your tax requirements or if you’d like basic sales reports.
POS systems are so much more powerful and feature-rich. They allow you to do what a cash register does plus the following:
- Managing your inventory
- Collecting and storing customer data
- Running royalty programs
- Creating and implementing promotions, etc
Mobility and flexibility
If you’re looking for a machine to ring up sales on-the-go, a POS system would be a great option. Alternatively, you could invest in a POS cash register. These are more portable and flexible than traditional cash registers.
POS systems are also more flexible as they can run on different devices i.e. PCs, Mac computers, or iPad.
Integrations
While most cash registers can only connect with your payment processor, a POS system has unlimited capabilities. These systems allow you to further extend your capabilities with solutions like:
- Accounting software
- e-commerce platform
- Loyalty and marketing automation software
- Payment processor
- Scheduling apps
- ERP
Pricing
If you’re working with a very tight budget, then a traditional cash register would be the ideal option for you. POS systems are quite expensive due to the included cost of the extra hardware. You should look at the POS systems as an investment that has so much more to offer.
A POS system cash register also comes with additional features and functionality. It enables you to save time while helping you to grow your business.
Verdict
All thriving retail businesses that process multiple transactions in a day need to arm themselves with a tool that’ll keep the operations running smoothly. When you’re choosing between a cash register, a POS system, or a POS register you need to put the unique needs of your business into consideration.
A budget-friendly cash register can handle all the basic retail checkout and payment needs. For some, this is exactly what they need but if you wish to run your operations more efficiently, you ought to invest in a POS system. The high initial expense of a POS cash register shouldn’t discourage you. Your business can expect to get many years of service from such a machine.
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