POS software records, processes and reports transactions. Depending on the type of system you choose, these methods can be as simple as cash-register printouts or as complex as job cost and sales category reports that are automatically generated daily, weekly, or monthly. The most basic POS software works like an electronic cash register. A user inputs the items using a keyboard, touch screen, or scanner, totals the purchase, and processes payment just like using a credit card machine.
A common feature in POS systems is the ability to link to a merchant account for credit card processing. If you already accept credit cards, you know how a merchant account works- the cards are processed and transactions are verified and “held” by the account provider, and then “settled” in batches and transferred to the business’ bank account. Processing credit cards using a POS system eliminates the need to record the transaction twice, and can in most cases give you faster access to funds. Some POS systems offer check readers, which allow checks to be read as debit card transactions, which take only a few hours to process as opposed to a few days for a check.
You should always purchase software first, because the software determines what hardware you’ll need. Most vendors will sell a common software package for your industry that can be customized for your products or services. You should ask questions about the specific functions of the software to get a good idea of its capabilities.
Here are some questions you might want to ask:
Does the software allow different payment options, such as credit cards or debit transactions, or even billing clients over time? Make sure the software accepts the types of payments you expect your clients to be making.
The type of software you purchase should be the first decision you make. After you’ve selected a program, you’ll know what kinds of hardware to purchase. A POS system is an investment, so it’s important to choose software you can use for years to come. Consider how easy the software is to use, the amount of time it will take to train new employees, and if the hardware needed will be expensive or need to be replaced often. Most software programs cannot be returned, so you won’t have the option of returning a program you don’t like. Make sure that you make an informed choice.
