Why are Point of Sale Systems Better than Cash Registers?

Eliminate shrinkage

A point of sale system can drastically cut down on shrinkage, the inventory that disappears from your store or restaurant due to theft, wastage, and employee misuse. Because employees will know that inventory is being carefully tracked, internal shrinkage will dwindle.

Improve accuracy

Whether you use barcode scanning or not, Point of Sale systems ensure that every item in your store or on your menu is sold for the correct price. Your staff will never mis-enter or guess prices again, and you can change prices with just one tweak in the computer.

Get better margins. Detailed sales reports can help you focus on higher-margin items. By moving items within a retail location or promoting under-performing dishes in a restaurant setting, you can help boost sales of high-profit items.

Know where you stand. At any point in the day, a Point of Sale system can instantly tell you how many of a particular product you have sold today (or last week, or last month), how much money you have in your cash drawer, and how much of that money is profit.

Better managed inventory. Detailed sales reports make it much easier for you to keep the right stock on hand. Track your remaining inventory, spot sales trends, and use historical data to better forecast your needs. Often, the software can alert you to reorder when stocks run low. Many store owners who think they know exactly what trends affect them find a couple of surprises once they have this data.

Build a customer list. Collect the names and addresses of your best customers as part of standard transactions. Then use the list for targeted advertising or incentive programs.

Reduce paperwork. Point of Sale systems can dramatically reduce the time you spend doing inventory, compiling sales figures, and other repetitive but important paperwork. The savings here: time and peace of mind.

More efficient transactions. In retail settings, barcode scanners and other Point of Sale features make checkout much, much faster. Restaurants will find their order process greatly streamlined as orders are relayed automatically to the kitchen from the dining room. In both cases, your customers get faster, more accurate service.


Keep in mind that realizing these benefits requires a commitment to utilizing the Point of Sale systems capabilities to their fullest. Without appropriate training & ongoing analysis, even the most sophisticated Point of Sale system will be no more useful than a basic cash register.