Which is better for your business: a Hand Till or a POS system?
It is impossible to manage a retail business without a cash management system. It could be the traditional hand till, or the modern state of the art POS. The sales are too complex and complicated to be controlled by the human mind. This is why retail stores had to rely upon electronic devices for processing their sales.
Many transactions are processed daily by successful retail businesses, sometimes hundreds of thousands. Brick-and-mortar stores need the right tools to handle this volume.
What is the heart of a retail company? The fundamental component of a retail company includes the cash drawer, point of purchase also known as the point of sale (POS) method. Although these terms are frequently used interchangeably, they're not identical. There are several significant differences between the two that can affect your choice of a retail route. Let's take a look at what a traditional cash register looks like, how POS systems work, and how they differ. Also, how to pick the finest choice for your business.
What's a cash register?
Official definition of the word cash register refers to a machine that records the amount of money received as well as the value for each transaction.
Tills keep track of cash coming in and out of your store and report transactions. It can calculate taxes and generate receipts. Basic sales tracking is also possible. Cash registers are used in many major grocery and department stores.
Since their inception, cash registers have advanced a lot. Nowadays, electronic cash registers are commonplace in restaurants. A simple cash register is capable of handling financial transactions. However, the newer cash registers have more options.
Cash registers generally cost less than £100, but you will need additional hardware if you require additional functions such as barcode scanners, credit card readers, or scales.
What's a POS system?
The term "point of sale" refers to the location where an item is purchased, such as a check-out counter. The means by which shops and consumers can complete purchases are known as POS systems.
A POS system acts as a cash register with steroids. You can use it for cash transactions, and you can also get more detailed reporting on these transactions. The touch screen interface is used by employees to manage purchases at a POS.
A POS could be made up of a few parts:
- Touch screen device
- Card scanner
- Chip reader
- Barcode scanner
- Server (the Cloud).
The POS system has evolved over the course of time. Many POS terminals can be integrated with other retail tools such as accounting software or inventory management software. Some can be used as a command center for retail management, handling all sales, inventory, and customer management.
Multi-channel sellers need POS systems to track and sync data across multiple stores, warehouses, and/or fulfillment centers. They allow retailers to keep track of multiple channels and stores through one central location. The POS system can also be used to oversee different aspects related to your business.
- Customer loyalty programs
- Gift cards
- Data for informed business decisions
Mobile business owners can access the Cloud from their mobile devices
What's a mobile POS?
Mobile points of sale are a more recent version of the modern cash register. As you can see, an mPOS does not support mobile payments. This is useful for sellers who sell at multiple locations, or for those who frequently attend events or markets. However, it can also be used for brick-and mortars with a single location.
mPOS systems allow associates to be mobile just like customers. Instead of forcing customers to go to the point, they can buy at any time they want. You can make the buying process go more smoothly and boost your chances of making a deal. They are also smaller than standard POSs, which allows for mobility.
A monthly subscription fee is quite common in mPOSs.
What's the Difference Between a Hand Till and a POS System?
It appears that both traditional cash registers as well as modern POS systems serve the same purpose: to ring up sales. While both systems can accomplish this, the differences between them are deeper.
A cash register stores cash in a drawer, and allows you to facilitate checkout. A POS system can assist you in operating your retail store.
The fundamental distinction between hand till and POS systems is that the latter is far more efficient, resilient, and scalable and easy to use.
Take into account the following:
Features and functionality
Lets you ring up sales. It also has a secure drawer to deposit and pay bills. Some cash registers can easily be modified to meet your tax needs, while others can provide basic sales reports.
POS Systems: Enables you to do all of the above, as well as the following:
- Keep track of your inventory
- Gather and preserve client information
- Loyalty program
- Run reporting and analytics about your customers, inventory, sales, etc.
- Create and implement promotions
- And many other things.
Flexibility and portability
Traditional tills are less portable and versatile than modern POS systems. The cash register machine is the only form of the latter. POS systems can be used with a range of devices, including tablet and desktop. This allows you to make your checkout process as mobile or complex as you like.
A POS system can be used to make sales, whether you are looking for a way to take the cash wrap with you or do it quickly on the go.
Another advantage to point-of-sale systems is their ability to connect with your payment processor. The majority of cash registers cannot connect to your payment processor. You can extend the capabilities of your POS system by integrating it with other solutions, such as yours:
- Accounting software
- Ecommerce platform
- Software for marketing automation and loyalty
- Payment processor
- Scheduling apps
What's the distinction between cash register and point of sale device?
Opting between a hand till and a POS system for your retail business depends on your individual demands, just like any other core business choice.
It's not about picking the most effective. The real question is what's best for your business and which one will make it run smoothly. Cash registers are ideal for small retail shops and small businesses.
A large store will have a wider range of products and more departments. Point of Sale System is the most important thing to help your business run smoothly. Once you're satisfied with your choice, contact ARC Ireland to find the right setup for you store.