Unlike the new POS software, the original old fashioned cash registers that many of us remember from our younger years actually served a purpose although with limited functionality. Unable to do much more than add up sales in a very antiquated manner, the new POS software provides a much more robust level of overall business management.
It is based on financial tracking and inventory control, previously impossible to provide without either a multitude of individual automated systems, or in many cases, processes that were totally manual and very time-consuming.
One of the most well go and highly praised components of any point of sale software is the inventory management module. Unlike the old days where one of the sales clerks would actually need to go out back and manually count and record inventory on a regular basis, a POS system can do this automatically saving time and improving efficiency, clearly show in the bottom line financial figures.
A simple transaction could go like this: a customer is shopping in pet food store. He brings his order to the front cash register. His order contains one 10 pound bag of dog food in a particular flavor, a case of canned dog food, and one rawhide chew. As the sale is being rung up the clerk will automatically know the exact price, and how much change to provide you the customer is paying in cash. This transaction is simultaneously recorded in the store' s daily cash flow report.
These figures are recorded and added into the company's financial bookkeeping system, and depending on the add-on components purchased with the original system, predefined reports can be sent to suppliers who will need to replace inventory at periodic intervals, perhaps an accountant responsible for payroll, and integrated reports can be printed relevant to the merchant account system.
Even a small company that might assume this type of software is far beyond their budgeting means quickly realizes that the time saved because inventory management is improved is certainly worth just about any price they need to pay. The return on investment for these systems is immediate.
Even online companies will use these systems as they control their inventory and take control of their financial situation. This type of software provides a much more cohesive bottom line overview on either a daily weekly or monthly basis with just a click of a mouse. Even 20 years ago to produce this type of reporting and business overview could take an entire day, if not more, to get something that made sense.
