Managing a successful business usually means that you need to process multiple transactions per day or even per hour. To keep up with the cash flow and make the checkout process convenient both for the customers and salespeople, you need to be technologically up to speed. The specific needs may depend on the type of business whether you own a shop, a restaurant or a home delivery service, but in general, there is a choice between a basic cash register machine or a point-of-sale (POS) system
In this article, we’ll take a look at both of them, discuss what are the advantages and disadvantages of each.
What is a cash register machine?
Cash registers have been around for a long time and they are solid and easy-to-use machines that get the necessary job done. For example, many grocery, department retail stores, or brick and mortar businesses use cash registers.
Advantages of using a cash register
The primary benefit of using a traditional cash register machine is its ability to streamline the check-out process. Customers can pay with cash or credit card quickly and easily while staff members can keep track of inventory levels without having to manually input information into a computer system. Cash registers also provide enhanced security features such as password protection and audit trails that help reduce the risk of fraud or theft in your store.
Using a traditional cash register machine also helps ensure accuracy when it comes to processing payments from customers. The device will prompt employees for any discounts or specials on items being purchased so there are no miscalculations at the end of each transaction which could lead to customer dissatisfaction or loss of revenue for your business. By automating this process with a reliable cash register system, you can save time while ensuring accuracy throughout each sale transaction without having to rely on manual calculations which could introduce errors into the equation leading to costly mistakes down the road.
Lastly, using a reliable cash register system gives customers peace of mind knowing their information is secure when they purchase items from your store as most machines now come equipped with advanced security features such as encrypted passwords for added protection against theft or fraud attempts by malicious individuals trying to gain access sensitive cardholder data stored within your database. This provides an additional layer of safety not only for customers but also for businesses who may be subject legal liabilities if their systems were compromised by hackers looking steal vital customer information.. Knowing their payment information is safe gives people more confidence when shopping at establishments that deploy these types technologies meaning more sales opportunities overall making it clear why investing in quality equipment like this is beneficial all parties involved.
The main functionalities of basic cash registers are usually limited to a list of items and prices, a printer for receipts, and attached cash drawers to handle cash transactions. Some modern models also come with screens and a better interface design. New electronic cash registers also allow you to connect a barcode scanner and the credit card machine that is needed to service the customer and can process credit card payments. The cash register machine allows to create basic sales reports at the end of the day. Additionally, modern machines are equipped with software programs that allow you to generate detailed sales reports so you can analyze trends in your business’s performance over time.
Disadvantages of using a cash register
Cash registers are a quite basic option chosen by small businesses on a tight budget. It can get everything done, but it doesn’t provide much extra value. Their design is usually quite straightforward and simple since there aren’t many features. This makes it easy to learn and for your employees to use. It is worth noting that their price is quite low and they do last a long time. The low upfront cost might be appealing to businesses that are just starting out.
What is a POS terminal?
A POS system UAE machine allows you to do so much more than just manage receipts. A smart POS terminal is basically the core of your business – from helping you track inventory to knowing who the loyal customers are. You can access all that with a user-friendly interface from a computer screen. A modern POS terminal connects all the dots in your business and is the next step in customer relationship management.
Advantages of using POS systems
New POS terminals have many advantages: from powerful analytics that help make better management decisions to marketing and sales campaign solutions that help increase sales. Since a POS terminal is like computer software, it can be updated so it grows with your business.
Disadvantages of POS systems
Unfortunately, most POS systems usually comes with a bigger price tag than a cash register. But the new functionalities are definitely of help when running a shop and looking for a new restaurant POS system in Dubai.
Main features of a POS system terminal
A point-of-sale system has many functionalities that help the management to analyze and understand their business. Here are the main features of a point-of-sale system.
- Inventory management
Most cash registers do not have the option of inventory management. At the end of the day, it is possible to see how many products were sold, but this is usually a limit of the device’s functionality.
In contrast, the POS terminal has very thorough inventory management. For example, if you have a restaurant or food delivery business, by using a POS terminal it is possible to keep track of the components sold and their price. In addition, the checkout system allows the user to be notified of the need to order additional goods. This is very valuable for your purchasing department and reduces the risk of running out of some important components.
- Security
The cash register does not give the owner confidence in what is happening in the company, as it does not have the control functions inherent in the point-of-sale system. Yes, it has the traditional cash drawers, but the POS system also can log cash register activities, create various user rights and integrate it with video surveillance. All in order to increase control over the business and mitigate the risk of employee theft.
- Advanced reporting
The cash register is usually only able to print a daily report for the purposes of basic sales reporting. A more expensive model maybe also allows printing the report by product. It may be impossible or at least time-consuming to get an overview of all the sales of the previous days. POS terminals allow you to track different purchase patterns and sort by invoices, products, payment methods, sellers, and campaigns. Here you’ll see all the necessary data about your business.
- Loyal customer management
The cash register does not offer the possibility to store customer data, monitor the history of their purchases, or make special offers, like give out free coffee or reduce the price for some items. The checkout system of the POS includes a CRM module that provides the merchant with accurate customer-specific information and enables the creation of customer-targeted campaigns or loyalty programs. It is possible to test reduced price or free extras on your local customers and find how to add value for them and increase sales at the same time.
- Ease of use
Cash registers usually operate on the principle that each product has a unique number. The customer service representative must know these numbers by heart or look at the booklet. The POS system allows you to define buttons for product groups, products, and different functions. The desired products are selected on the touch screen and sales are very fast. This makes the point-of-sale model very easy to use for salespeople. If the business has a wide variety of products, search functionality can be of help to the users.
- Accessories and interface status
With a point-of-sale system, there is a wide selection of extras to add. Card payment terminals, customer screens, barcode scanners, and kitchen printers that are used in restaurants are just some of the devices that come with the point-of-sale system, which makes the company’s everyday life more convenient. In addition, it is possible to connect video surveillance, accounting software, and e-shops to the system. The above-mentioned possibilities for cash registers are usually not available.
Cash registers or point-of-sale (POS) systems?
The business of running a new restaurant or a shop requires much from a cash register than just a cash drawer where to hold the money. Having a clear overview of incomes and outcomes can add value to your business. The price of the new technology is certainly an aspect to consider, but on the other hand, it will help you manage your business better.
Yes, a regular cash register can offer the basic functionalities to set up your shop. When your new business grows in size and complexity, a decent point-of-sale system would be preferred as it keeps all important data in one place and makes it easily accessible for the manager. This way the office people know what’s going on on the sales floor. Also, running a restaurant may benefit from the additional accessories that can be combined with the point-of-sale system.
Efficiency is very valuable in managing a business and opting for a point-of-sale system is a good way to address that issue right from the start. In the bigger picture, the type of sales technology a company uses also plays an important part in customer experience as it influences the speed of the checkout process and allow to create special offers for loyal customers.
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