Choosing the right Point of Sale (POS) system for a small business is a crucial decision to make. It allows you to streamline your operations and serve your customers better.
A POS system helps track sales and inventory, manage customer data, accept payments, and much more.
It can be overwhelming to decide which one is right for you and this guide takes you through what to consider when deciding on POS systems for your small business.
What Is A POS System?
A Point of Sale (POS) system is a system that uses software and hardware components to capture sales transactions in a store or business.
It is predominantly used by retailers, restaurateurs, and service providers to track sales, manage inventory, and process customer payments.
The POS system is usually a combination of specialized computers, data input devices, and barcode scanning tools as well as electronic cash drawers and/or electronic signature capture devices.
POS systems are becoming increasingly popular due to their ability to streamline the checkout process and provide valuable insights into customer behavior.
They can also be used to generate reports, track employee performance, and manage customer loyalty programs.
Most POS systems are now cloud-based, allowing businesses to access their data from anywhere with an internet connection.
What Does A POS System Include?
POS systems typically contain a wide range of components, including a touchscreen monitor and POS software, a receipt printer, a cash drawer or combination of a drawer and metal cash box, a credit card reader, a barcode scanner, and a customer display.
Many systems include additional integrations, such as a loyalty program or online ordering.
The POS software is the most important component of POS systems. It is responsible for managing the sales process, inventory management, and providing reports and analytics.
The POS software can also be used for customer relationship management, processing payments, and integration with other systems such as accounting and inventory management.
The hardware components of a POS system are designed to be durable and reliable.
The touchscreen monitor is usually made of scratch-resistant material, and the cash drawer is designed to be secure and tamper-proof.
The credit card reader is usually equipped with encryption technology to protect customer data, and the barcode scanner is designed to quickly and accurately read barcodes.
How Does POS Systems Work?
POS solutions use POS software and hardware components that are managed by computerized systems with services provided by Point of Sale (POS) providers.
The POS software is used to capture sales transactions when customers make purchases in-store or online ordering.
The hardware includes components like barcode scanners, touchscreen monitors, cash drawers, and payment terminals.
They all connect to make sure the cashier can accept payments quickly and accurately while programming also allows businesses to track sales data.
10 Best POS Systems For Small Businesses
Lightspeed Retail
Lightspeed Retail is a cloud-based POS system that offers a wide range of features for inventory management, eCommerce, multi-store management, and reporting.
The system is particularly well-suited for retailers and offers strong integrations with third-party apps and systems, such as QuickBooks and Shopify.
One of the key strengths of Lightspeed Retail is its robust inventory management capabilities, which allow businesses to easily track stock levels, set reorder points, and manage purchase orders.
Lightspeed Retail pricing starts at $69 per month.
Vend
Vend is one of the renowned cloud-based POS systems that offer a range of features for inventory management, eCommerce, multi-store management, and reporting.
The system is designed for retailers and offers strong integrations with third-party apps and systems, such as Xero and Shopify.
One of the key strengths of Vend is its user-friendliness, with an intuitive POS software that makes it easy to manage sales and track inventory.
Their point-of-sale systems also offers a range of customizations and add-ons to tailor the system to individual business needs.
Customer support for Vend is excellent, with 24/7 phone and email support available.
Vend POS system pricing starts at $119 per month.
Square
Square is one of the popular modern POS systems that offers a range of features for payments, inventory management, invoicing, reporting, and eCommerce.
The system is known for its user-friendliness and affordability.
Square also offers a range of hardware options, such as card readers and registers, for businesses to choose from.
Square’s pricing is transaction-based, with a free version and payment processing charges starting at 2.6% + 10 cents per transaction.
Clover
Clover is a POS system that offers a range of features for payments, inventory management, customer management, reporting, and loyalty.
The POS systems are designed to be used for retail and restaurant POS and offer strong integrations with third-party apps and systems, such as QuickBooks and DoorDash.
One of the key strengths of Clover is its flexibility, with a range of POS hardware options available, including registers, terminals, and mobile devices.
Clover pricing starts at $50 per month.
Toast
Toast is a POS system that is specifically designed for restaurants and offers a range of features for payments, inventory management, menu management, online ordering, and reporting.
The system is known for its user-friendliness and customizability, with a range of hardware options available, including tablets, kiosks, and handheld devices.
Toast also offers strong integrations with third-party apps and systems, such as Grubhub and DoorDash.
Toast pricing starts at $69 per month.
TouchBistro
TouchBistro is an iPad-based POS system that is specifically designed for restaurants and offers a range of features for order management, tableside ordering, menu management, inventory management, and reporting.
The system is known for its user-friendliness and intuitive interface, which makes an ideal choice as restaurant POS.
TouchBistro also offers strong integrations with third-party apps and systems, such as QuickBooks and Square.
TouchBistro POS system pricing starts at $69 per month.
Revel
Revel is a POS system that is designed for restaurants and offers a range of features for payments, menu management, inventory management, reporting, and customer management.
The system is known for its user-friendliness and customization options, with a range of hardware options available, including registers, kiosks, and handheld devices.
Revel also offers strong integrations with third-party apps and systems, such as QuickBooks and Grubhub. This makes it an ideal restaurant POS.
Revel pricing starts at $99 per month.
Shopify POS
Shopify POS is a cloud-based point of sale system that is designed for retail businesses and offers a range of features for payments, inventory management, customer management, and reporting.
The system is known for its seamless integration with Shopify’s eCommerce platform, allowing businesses to sell online and manage offline sales from a single platform. This makes it the ideal choice as retail POS.
Shopify POS also offers a range of customizations and add-ons to tailor the system to individual business needs.
Shopify POS system pricing starts at $29 per month.
PayPal Zettle
PayPal Zettle is one of the most popular modern retail POS systems that is designed for small businesses and offers a range of features for payments, inventory management, invoicing, and reporting. This make it ideal for use in multiple locations.
The system is known for its affordability and user-friendliness, with no monthly fees and processing fees starting at 1.75%.
PayPal Zettle also offers a range of hardware options, such as card readers and registers, for businesses to choose from.
PayPal Zettle pricing is transaction-based, with no monthly fees.
Hardware options start at $29 (for first card reader) and go up to $239.
eHopper
eHopper is a point of sale system that offers a range of features for payments, inventory management, customer management, reporting, and eCommerce.
The system is known for its affordability and flexibility, with a free version available and additional features available for purchase.
eHopper also offers a range of POS hardware options, such as card readers and registers, as systems for small businesses to choose from.
eHopper pricing starts at $39.99 per month.
Now, let’s take a comparative look at the best POS systems.
Now, let’s take a comparative look at the best POS systems
POS Systems Pricing User Friendliness Customizability Hardware Options Integrations Lightspeed Retail Starting at $69/month Easy to use, intuitive interface Highly customizable, with various add-ons available Multiple hardware options, including iPads, printers, and Integrates with a range of eCommerce, accounting, and marketing tools Vend Starting at $119/month User-friendly, with a simple interface Highly customizable, with add-ons and integrations available Various hardware options, including iPads, cash drawers, and barcode scanners Integrates with a range of eCommerce, accounting, and marketing tools Square Free to use, with payment processing fees Easy to use, with a simple interface Customizable with various add-ons available Multiple hardware options, including card readers and registers Integrates with a range of eCommerce, accounting, and marketing tools Clover Custom pricing based on individual needs User-friendly, with a simple interface Highly customizable, with add-ons and integrations available Multiple hardware options, including registers and tablets Integrates with a range of eCommerce, accounting, and marketing tools Toast Custom pricing based on individual needs Easy to use, with a simple interface Highly customizable, with add-ons and integrations available Multiple hardware options, including tablets, kiosks, and handhelds Integrates with a range of eCommerce, accounting, and marketing tools TouchBistro Starting at $69/month User-friendly, with an intuitive interface Highly customizable, with add-ons and integrations available Multiple hardware options, including iPads, printers, and card readers Integrates with a range of eCommerce, accounting, and marketing tools Revel Custom pricing based on individual needs Easy to use, with a simple interface Highly customizable, with add-ons and integrations available Multiple hardware options, including registers and kiosks Integrates with a range of eCommerce, accounting, and marketing tools Shopify Starting at $29/month Easy to use, with an intuitive interface Highly customizable, with various add-ons available Multiple hardware options, including card readers and registers Integrates with a range of eCommerce, accounting, and marketing tools PayPal Zettle Payment processing charges starting at 2.29%+ $0.09 per transaction User-friendly, with a simple interface Limited customizability Multiple hardware options, including card readers and registers Integrates with a range of eCommerce, accounting, and marketing tools eHopper Starting at $39.99/month Easy to use, with a simple interface Highly customizable, with add-ons and integrations available Multiple hardware options, including tablets, card readers, and registers Integrates with a range of online ordering, accounting, and marketing tools Overall, each small business POS systems has its strengths and weaknesses. The best POS systems for a business will be chosen based on a business’s individual needs and preferences.
Factors small business owners should consider when choosing a POS system include cost, user-friendliness, customizability, hardware options, and integrations with other systems and apps.
What Are the Types of POS Systems?
There are two main categories of POS systems – on-premise systems and cloud-based systems.
On-premise systems are installed on a server in-house, while cloud-based systems are accessible through the internet.
Both offer benefits to businesses but come with different levels of flexibility, cost, and installation complexity.
On-premise systems tend to be more expensive upfront and require more maintenance over time, while cloud-based systems typically have flat monthly fees and require less hassle with installation and maintenance.
On-premise systems are ideal for businesses that need a lot of customization and control over their POS system. They also offer more security, as the data is stored on-site.
Cloud-based systems, on the other hand, are great for businesses that need to access their data from multiple locations. They are also more cost-effective and require less maintenance.
Ultimately, the type of POS system you choose will depend on your business needs and budget.
What Are The Costs Associated With Using A POS System For Small Businesses?
The cost of a POS system for a small business depends on the number of features you need and the complexity of the setup.
Generally, depending on all the features your business may need; it could cost anywhere from several hundred dollars to several thousand dollars.
The cost of POS software ranges from $99 – $1000/month depending on if your small business opts for an on-premise or cloud-based solution.
When considering the cost of a POS system, it is important to factor in the cost of hardware, such as the POS terminal, barcode scanner, and receipt printer.
Depending on the type of hardware you choose, the cost can range from a few hundred dollars to several thousand dollars.
Additionally, you may need to purchase additional hardware, such as cash drawers, scales, and card readers.
It is also important to consider the cost of installation and training.
Depending on the complexity of the system, you may need to hire a professional to install and configure the system.
Additionally, you may need to provide training to your staff to ensure they are comfortable using the system.
The cost of installation and training can vary significantly depending on the complexity of the system and the number of staff members that need to be trained.
Which POS System Features Are Important For Your Business?
When deciding the best POS systems for small businesses, it’s important to consider the features offered by POS providers.
Depending on your business’s individual needs, the features that are most valuable may vary.
Common features that are important in a POS system are:
- The ability to accept payment via alternate methods
- Customer management functionality
- Inventory tracking
- Loyalty programs
- Reporting tools
- Employee management tools
- Integrations with e-commerce platforms
It is also important to consider the cost of the POS system, as well as the customer service and technical support offered.
You should look for a POS provider which is easy to use and can be customized to fit your business’s specific needs.
By taking the time to research the features and benefits of all point-of-sale systems, you can ensure that you select the best one for your business.
Advantages of POS Systems
Using a POS solution comes with many advantages. Some of them include
Increased Efficiency
A POS solution automates many processes, such as inventory management, sales reporting, and employee scheduling, which reduces the need for manual data entry and therefore, saves time.
Improved Accuracy
POS systems can reduce the likelihood of human error by automatically recording sales, tracking inventory, and updating prices in real-time.
Better Inventory Management
A POS system can track inventory levels in real-time, so small business owners can easily monitor stock levels and reorder products as and when necessary.
Enhanced Customer Experience
POS systems can speed up transactions, reduce checkout lines, and enable businesses to accept payments, including mobile payments and contactless payments.
This makes the shopping experience fast and convenient for customers.
Improved Reporting And Analytics
Many POS systems can generate detailed reports on sales, inventory, and employee management, which can help businesses identify trends, make data-driven decisions, and optimize their operations.
Increased Security
POS systems can encrypt sensitive customer data and protect against fraud and theft, which helps businesses comply with regulatory requirements and protect their reputation.
Overall, using a POS solution can help businesses operate more efficiently, make better decisions, and provide a better customer experience.
How to Choose The Best POS System for Small Businesses?
Choosing POS solutions for small businesses can be complex and time-consuming.
It is very important to remain focused on your business goals to ensure you’re selecting the best POS system for small scale enterprise.
Consider what features you need now (and potentially in the future) as well as the costs associated with all POS systems.
You can also consider service providers’ availability for customer service if any issues arise with any of your POS systems.
Some Common Mistakes You Should Avoid When Opting For A POS System
When choosing POS solutions for small businesses, one should avoid some common mistakes, such as:
- Choosing a system based on price alone: While price is an important factor, you should also consider the features, usability, and support offered by the system.
- Not considering your business needs: You should choose a POS system that offers the features and functions that your business needs, such as inventory management, employee management, sales tracking, and payment processing.
- Not testing the system before buying: You should test the system before buying it to ensure it meets your needs and is easy to use.
Failing to research the vendor: It’s essential to research the vendor and ensure they have a track record of providing reliable and quality POS systems. Check for reviews and references, and ask for demos or trials to test the system before making a purchase. - Ignoring ease of use: A POS system that is difficult to use can result in staff frustration, errors, and lost productivity. It’s important to select POS systems for small enterprises that is intuitive and easy to learn and use.
Conclusion
The right small business POS system can help businesses find success.
With the right features and strategic execution, a POS system can help streamline operations while improving customer experience.
With so many different POS systems for small businesses available in the market today, it’s important to consider all aspects before deciding so that small businesses can fully explore all opportunities available with a reliable POS system.