What is a Point of Sale (POS) System?

Point of Sale (POS) System for business

New to the business? Then it is important to know the terminologies involved. One valuable aspect in running a business is to have a Point of Sale (POS) System.

A Point of Sale (POS), according to Investopedia, refers to the ‘place where a customer executes the payment for goods or services and where sales tax may become payable. It can be in a physical store, where POS terminals and systems are used to process card payments or a virtual sales point such as computer or mobile electronic device.

At the literal ‘point of sale’, the seller calculates the amount owed by the customer for goods or services rendered, then indicates the amount and prepares an invoice (may be in the form of a cash register payout) then presents the customer with payment options. After payment, the seller issues a receipt for the transaction, may be in the form of printed receipt or sent electronically.

Components of a Point of Sale (POS) System
A POS system is comprised by both software and hardware components.

Hardware. The hardware component includes the physical aspects of the system – a tablet, a tablet stand, cash drawer, receipt printer, card reader, credit card terminal, to mention a few. Some systems may have additional hardware such as a barcode scanner, customer display screens, caller ID devices, kiosks, coin dispensers, kitchen printers, digital menu board, scales, and more.

Software. The software component is the digital technology platform that may be cloud-based or local server-based. In today’s time, cloud-based technology is often used due to its usability, affordability, security, and convenience. Moreover, this system requires internet connection.

Moreover, a modern gamechanger is the Mobile POS System, also known as a Point-of-Sale app

What is a mobile POS?
A mobile POS typically runs on a smartphone, tablet, or dedicated wireless device and has the power to function as a cash register or electronic POS terminal. Select mobile POS systems have additional features such as inventory management, user interface, high security, system integration, and even customer support.

To make the long story short, a POS system can do wonders for your business.

And a mobile POS is exactly what the Peddlr App is. The Peddlr app is a FREE Smart POS App that assists small and micro business in recording sales, log expenses and understand business performance. The app generates easy-to-understand accounting reports. Looking for a reliable POS system for your business? Learn more about Peddlr now.