Are you in search of the best POS system for your small business? Whether you own a retail shop, ecommerce business, or a quick service restaurant, you will need some type of POS system or software to run your business. Choosing a point-of-sale (POS) system is one of the most important payment-related business decisions.
What is a POS Software System and why do you need one?
The point-of-sale software market value is growing rapidly, going from $12.2 billion in 2018 to an estimated $42.5 billion in 2027!
Point-of-sale systems are a combination of hardware and software that enables your business to make sales. POS systems not only help you accept and process payments, they also help assist in business operations (orders, inventory, reporting, scheduling, employees, customer engagement).
Depending on what system you decide to use, you may have access to additional tools. That is why it is vital to choose the best POS software for your small business! The best POS software system will help you be more efficient in nearly every aspect of managing your business operation.
3 Rules for Choosing the Best POS Software
Before we dive into all the POS features, let’s set some ground rules on what to look for before choosing the best POS system!
Rule #1 – Don’t go broke paying for unnecessary costs
One of the first rules to consider is the cost of the payment system. The best POS software won’t cost you an arm and a leg. Simple is better. Especially if you’re just starting a small business. Some of the fancy features can wait. The average cost of POS software can range from a one-time fee of $99 for a simple credit card reader up to hundreds of dollars a month for a more advanced point-of-sale system. Go with a POS system that is affordable for your budget! Your POS software should provide you will the essential tools that you need to grow your business… not take you out of business!
Rule #2 - Do your research on POS software before you give it the green light
How do you know if it’s the best software for your business type? Be sure to do your research and schedule a software demo so that you can see it in action. This way you can make sure the point-of-sale system is a perfect fit for your business! Any business that accepts payments needs some form of a POS system, but every business is different. Since not every POS system has the same components or features, it is vital to research various software before giving one the green light.
Rule #3 – Make sure the POS system can support the weight of your business
The best POS software should make your life easier when it comes to managing your business operations. Not harder! Does it provide an adequate support team to help answer your questions? No matter how tech-savvy you are, it’s good to have quick access to customer support. AI might be the technology of the future, but the last thing you want is to get stuck talking to a robot to get answers! Does the software allow you to scale your business? Does it fit your specific needs? Build a checklist of essential items that you need out of POS software.
Here is an example of checklist questions to consider:
- Are you in the retail, food, or service sector?
- Do you sell products, services, or a mix of both?
- How do you prefer to accept payments?
- What is the size of your business?
- What are the challenges in running your business?
- Do you operate strictly online, or do you have a physical location, pop-up, or mobile store?
- What is your staffing setup?
5 Features to Consider when Choosing the Best POS System
Now that the ground rules have been set, let’s jump into the essential features every POS software system should have! Your needs will depend largely on what industry you’re in. If you’re a restaurant owner, you will have different operational needs from an ecommerce or service business. Do you need the ability to track inventory? Do you need a full countertop POS terminal or a pocket-sized card reader? Maybe you need the software to facilitate online orders?
To help guide you, let’s start by distinguishing wants verses needs. The best POS software will have these key features:
1. Payment Processing Options
First and foremost, you can’t operate a POS system without having some type of payment processor. Payment processing is one of the core functions of a POS system. Does it allow you to choose the payment processor? It should! You don’t want to buy a POS system that forces you to use a payment processor that charges 3-4% on each transaction! Some POS systems are locked, while other systems give the business owner the flexibility to choose their payment processor.
What types of payments do you accept at your business? The best POS systems offer full flexibility accepting payment methods such as Apple or Google Pay. Be sure that the POS software has the payment functionality to accept all card types including debit, credit, and contactless payments.
2. Financial Reporting
Every business needs the ability to track their financials for tax reporting purposes. This functionality gives business owners helpful insight into their operation and facilitates data-driven decisions. The payment software system should offer an easy-to-use reporting system for checking your daily batches and transaction reports. Do you need to separate any of your daily reports for employee tips or tax purposes? Do you have multiple locations? Make sure the POS system can support the reporting for your unique business set up.
3. Online Store Options
Do you need a system to sell your products or services online? If so, you should make sure the POS system has both the capability to sell in-person as well as online. This way if you need to set up online ordering, you can track all your reporting from one centralized software system. Logging in to multiple systems to generate reports is time-consuming and inefficient. The more centralized your system is, the more organized your operations will be. The best POS software will help your business run smoothly – not create a new set of struggles for you and your employees.
4. Inventory Management
Tracking inventory is important for any type of retail or ecommerce business. If you have too much of a product, you’ll run out of space to store everything. Likewise, if you don’t have enough of a product, you’ll lose sales. Inventory management is crucial to a business’s success!
Smaller retailers may think they don’t need any inventory management assistance because they don’t have a lot of items, but inventory management is so much more than knowing how much stock you’re carrying! The best POS system should track real-time inventory, send notifications when stock levels are running low, and report the best-selling and unpopular products. Overall, a POS system should help merchants plan ahead rather than setting them behind.
5. PCI Compliant
The best POS system will uphold Payment Card Industry (PCI) Compliance rules. The Payment Card Industry (PCI) Compliance includes 12 security standards created by the PCI Security Standards Council to help small businesses with protecting customer credit card data. These 12 PCI security standards are enforced by the major card networks including Visa, Mastercard, Discover, and American Express. By staying compliant, you are helping to avoid data breaches and also prioritizing your customers. When considering what system to choose, the best POS software will uphold PCI Compliance standards.
What about the POS System Provider?
After taking into account all product considerations, it is also smart to make sure the POS provider is viable. When you purchase a POS system, you’re also doing business with the company. The best POS software will include a POS provider that focuses on making your business succeed. Below are a few questions to consider:
- Is the company financially stable?
- Is POS its primary business?
- What industry experience does it have?
- Is the company a provider or reseller?
- Does the company have mostly positive reviews? If any negative, what do they say?
POS System Recommendations
Below are some POS system recommendations to consider:
- Clover: Clover is a cloud-based Android point of sale platform that is designed for restaurants, retail stores, and service businesses.
- Revel: Revel Systems is an all-in-one iPad-based POS solution that is suitable for quick-service restaurants, table-service restaurants, and specialty retail brands.
- Ingenico: Ingenico is a stationary countertop payment terminal that can easily be integrated using NFC technology. The Ingenico POS system allows retail stores or restaurants to accept credit card payments.
- LightSpeed POS: Lightspeed is a cloud-based POS system that helps retailers and restaurant owners accept in-person, online, and contactless transactions.
- BB POS (Mobile Card Reader): BB POS is a compact device that combines magnetic swipe, chip card, and contactless payment acceptance.
Overall, choosing a point-of-sale system is an important decision and shouldn’t be taken lightly. After all, you, your staff, and your customers will use the software daily! When choosing the best POS software system, it is crucial to do your research and understand your own business goals. Use this as a guide to make the right decision for the future of your business!
Gulf Management Systems (GMS) offers all the payment management systems you need for your business. Our affordable management systems are designed to simplify your business management so you can save time and money. Our payment management solutions include ACH Payments, Credit Card Processing, Virtual Terminals, Direct Deposit, Payment Management Software, and more!
We realize that accepting credit and debit cards comes with additional costs and overhead for a business. That’s why we offer some of the lowest payment processing fees in the industry. Our payment specialists will tailor a plan to help build the best payment management system for your business.
