As a business owner, you might not have ever considered why the one piece of equipment that you can not go without is a cash management system. Now, this could be as simple as having a lockbox or a cash drawer to something incredibly elaborate and technical. Ultimately, however, if the business is operating, your cash register has the ability to perform a lot of different functions. It can save you money, process transactions, and even keep accurate records, according to the About Retail site. Upgrading to a modern point of sale, or POS, system is certainly something every business owner should consider. Here are a number of reasons.
Easier to Detect all Types of Shrink:
A solid POS system will certainly record all of your transactions. Not only will everything be recorded, but it will be done so much more accurately than virtually any other method, according to the Microsoft website. This means sales tracking is enhanced and can be conducted in real time, but also allows you to identify inventory levels. This is especially true when what you have on the books is not the same as what you actually have on hand.
The bottom line to this is that you are going to notice that you have an imbalance well before it becomes a critical problem. If used properly, this is perhaps the one of the biggest reasons to consider using a POS system. It will also help you to pinpoint the cause of the difference, often known as shrink.
Total Inventory Management:
In addition to being able to help you notice and correct any potential shrinkage problems, a good POS system will basically give you a lot of options for managing your inventory. You should be able to set alerts for items which are running low, according to an Entrepreneur article. Also, adding new items into the system as they are delivered is also very easy and certainly quicker than an old paper and pen method.
You will be able to handle virtually any type of inventory issue. This means being able to account for back orders and stock ordered already (and likely paid for) but not delivered. In many cases, you will also be able to generate purchase orders to send to vendors and possibly even invoices to send to customers.
Understand Sales and ROI:
Many times, the owner of a business is too busy trying to run and manage everything to really sit down and plan or analyze their results. With a POS system this becomes much easier. You can analyze your sales with a number of easy to generate reports and information. Learn which are your top selling product lines and how much profit you make from each item and line on a daily, weekly, or monthly basis. Sales reports can also allow you to evaluate the success of any marketing campaigns being run, according to Firmology.
You will now be easily able to find those items with the best margins and focus on expanding in those areas where the sales make it profitable. Better still, identify who your best workers or sales people really are, the best types of pricing structures or discounts to offer, and what marketing activities are the most successful for your business. This gives you all of the critical information needed to optimize sales processes, marketing, and ordering procedures.
Maintain Control Even Without Being Present:
A good POS system makes it much harder for your employees to take things easy or slack off, even when you’re not around. There is no getting around the fact that the orders still need to be entered into the system and once they do, that is when the magic happens. Also, any employee who might be tempted to cut corner while you are not around can now be found out pretty easily.
Using a POS system helps you to maintain a similar level of control over your business, even if you happen to be away. The best systems will even allow you to log on and you can watch how sales and things are progressing remotely. This could be an excellent tool for employee training, as well.
Wide Variety of Tools:
A strong POS system will offer you all of this and more. Plus, it is also easy to add additional features onto the system, even if you end up waiting. There are tools available like a time clock for payroll and even applications that allow for cutting your own payroll checks. You might also be able to have customer databases, which can be great for marketing to your individual customers. This is also great news for small businesses because you won’t need to worry about buying separate systems just to get these additional features.
There are tons of reasons to consider a POS system for your business. The bottom line to all this is that it will not only save you money, but also help you to make more money. You will become more efficient and maintain a higher level of control by working smarter rather than harder.