Sales Reporting: On the surface, most POS systems enable you to look at your sales. The difference lies in how those numbers are presented, the ease at which data can be accessed and how much detail you get.

Your POS system should ideally be able to:

• Generate detailed sales reports (based on product, hour, employee, total cost of items sold, total retail amount, net profit, profit percentage, gross margin)

• Provide quick snapshots and charts on your store’s sales performance

 

Inventory Management: One of the most important functions of a POS system, inventory management, at its very essence, keeps track of all products so you know when it’s time to order/or not order specific products.

Your POS system should enable you to:

• Scan and count products digitally

• Manage your stock by creating product variations (size, color)

• Identify pieces of inventory with a unique serial number

• Track inventory levels across multiple locations

• Enable seamless ordering such as automatically setting custom reorders of best-sellers

• Consolidating purchases and orders in one order

 

Customer Management: Building strong relationships with your customers will lead to repeat business. A POS should have customer relationship management (CRM) to track all customer data.

Your POS system should give you the ability to:

• Attach a sale/transaction to a customer

• Keep track of your customers’ purchase history

• Capture customer information such as name, age, birthday, phone number and email address

• Use email marketing to keep in touch with them

• More advanced systems will have a built-in loyalty program

 

Employee Reporting and Management: The performance of your employees can make or break the success of your store. Having the ability to set sales targets as well as know who your top performers are and who requires extra coaching will help increase sales.

Your POS system should give you the ability to:

• Add employees to your system

• Create and modify schedules for employees based on forecasted activity

• Email schedules to employees

• Track employees’ hours weekly and over time

• Analyze who your top performers are

Choosing the Best POS System: Questions to Ask

If you’re choosing a POS system for the first time, start making a list of features you must have and talk to fellow business owners who are operating in a similar space. Ask what POS systems they’re using and what they like, or not like about them.

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Is the POS able to integrate with my existing software?

 

Do you have a website or accounting software? Choosing a POS that integrates with your existing setup will save you time and money.

What payment methods can the POS accept?

Double check that the POS is able to accept chip-enabled credit and debit cards. You’ll also need to have a EMV-compliant POS terminal.

How much does the software really cost?

POS systems can cost as little as a few hundred dollars each month to tens of thousands for a made-to-order solution. On average, about 46 percent of companies spend under $1,500 a year on their POS software.

Is your only option to sign a contract?

Signing on a dotted line means you’ll have to commit to the service until your contract ends, even if you don’t like it.

Are there any hidden fees?

Find out if there are any hidden fees involved in payment processing. These can come in the form of activation, downloads, early termination, refunds and transaction fees for different debit/credit cards.

Is any hardware proprietary?

Choosing a POS software vendor that offers proprietary hardware can save you time while offering smoother functionality. However if you’re looking to customize your setup, a proprietary solution can be restricting as it’ll only be compatible with equipment from the same company.