The Difference Between Cash Registers and POS System?
One thing that every retail store need is a machine that processes transactions. These machines include a traditional or computerized cash register or a point of sale (POS) system. A huge question that many entrepreneurs ask themselves, before launching their business, is what machine they should invest in to process and record transactions. Cash registers have been around forever, but the new POS system is getting more popular, especially with big booming businesses such as Adidas, Ralph Lauren, and others. Choosing the right processing system depends on several factors.
Factors include the cost of the machine, how busy you anticipate your business will be, whether you will accept any coupon code, the number of systems your store needs, etc. The most significant concern that any business entrepreneurs have is whether or not they are making a big mistake because the wrong choice may lead to negative customer experience and loss of sales.
The most significant difference between a cash register and a Point of Sale System (POS) would be the cost of each machine and the functionality they provide. If you aim to save money, the cash register is the cheaper option to go with. However, the feature of the POS System makes its selling price somewhat reasonable! Additionally, the performance of the cash register may not seem the best, and this functionality has a massive impact on your businesses’ sales and revenue. A mid-level cash register would typically cost about 300-800 USD, whereas a POS System would set you back for about 100-300 USD per month!
There are three types of functionality retail store owners, and business entrepreneurs look for; Software/Hardware, Till, and Business functionality. Cash registers have a receipt printer, an inbuilt cash drawer to store money. This functionality can be found in POS Systems, but it will work alongside the software separately. POS Systems come with a touch screen, and cash registers have push buttons. The touch screen is a much better option to go with, especially if the business is anticipated to be busy, as it’s the quicker option, but there is always the chance of a system freeze. Most POS Systems have credit card acceptance built into the software, but cash registers do not!
Coming to the till functions, POS Systems and Cash registers provide all the basic features needed to carry out transactions and sales, accepting cash payments, adding VAT and discounts, End-of-Day Reports, and refunds. The real difference is that POS Systems have unlimited products and categories. In contrast, a cash register typically has up to 200 categories and 2000 products, which is sufficient for a lot of businesses! While both these machines provides daily reports, a POS system produces a much more detailed report comparatively.
Business functions are where the POS Systems shine! POS Systems provides advanced analytics of the daily reports produced, whereas a cash register prints sales totals for each department. POS systems can use accounting software, manage digital timesheets, allocate gift cards and loyalty cards, track payments and stocks, and give reminders when your inventory is running low.
Living in a digitalized world demands you to adjust accordingly. Cash registers are the better choice if you want to save money, want to avoid technical crashes, and if your business has less than 2000 products. In contrast, a POS System should be bought when you want a future-proof system with customizable functions! It all depends on the size and requirements of your business.