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Most businesses need a Point Of Sale system to keep track of inventory, taxes, and produce accurate sales figures. There are two main types of POS systems: the cash register that is used to keep track of inventory like a general journal and the point-of-sale terminal which helps with tracking customer orders remotely for more efficient service.
A “POS System” is a type of point-of-sale system that allows businesses to track inventory and sales. A “Cash Register” is a device that tracks the amount of money in an account, keeps track of transactions, and provides other information about the business. Read more in detail here: difference between pos and cash register.
For every small company, having a cash management system is essential. While a simple electronic cash register (ECR) may be enough for certain small or temporary enterprises, most firms opt for more feature-rich point-of-sale (POS) systems that operate operations more efficiently.
This is particularly true since that POS hardware is more accessible than ever before, and some of the leading ECR manufacturers, like as Casio and Sharp, have discontinued manufacturing.
- Most companies and anybody who has to ring sales should use POS systems.
- Cash registers are ideal for low-volume or transitory vendors.
A Quick Comparison between POS Systems and Cash Registers
*Support for cash registers that are no longer in use may be unavailable.
Small Businesses Get the Most Out of POS Systems
In terms of features, a cash register and a point-of-sale system are poles different. Most companies benefit from a point-of-sale system because it enables them to handle all forms of sales, transactions, and company activities via a single computer system. Furthermore, many POS systems provide card Processing of Payments capabilities, which cash registers do not.
A cash register will set you back between $150 and $900 and, as you can see from our comparison table, only has the most basic sales functions. Many POS systems can be used on tablets and smartphones, with card reader and cash drawer add-ons costing around $200.
So, for a similar amount, you may buy a POS with hundreds more capabilities, such as extensive sales statistics, inventory management, personnel administration, and marketing tools. Many clients nowadays choose to pay using digital payments, which POS systems are better prepared to handle. And since there are fewer firms creating cash registers, finding one for your company might be challenging, particularly if you want one that comes with a guarantee or customer assistance.
For most small companies, we suggest Square as a point-of-sale solution. It’s free to use, runs on iOS and Android, and comes with a variety of hardware and specific software for retail, restaurant, and appointment-based companies. Create a free Square account and start ringing up sales right now.
Low-volume sales are suitable for cash registers.
Almost every small company would benefit from a point-of-sale system. Several POS-driven registers are included in our list of the finest cash registers.
If you just need to ring sales, print receipts, and accept cash, check, and credit card payments, a cash register will suffice. If you have a limited volume of sales and prefer a cash register interface to running software on a touch screen, this may be the ideal option for you.
Note that accepting credit card payments at a cash register necessitates the use of a separate merchant account.
In-Depth Price Comparison of POS System vs. Cash Register
To ring up purchases, both POS systems and cash registers need the acquisition of hardware. A cash register, on the other hand, is a one-time investment of $150 to $900 that includes software. A POS system may cost up to $1,500 in hardware and comes with subscription-based software that costs anywhere from free to $100 per month for a beginning package.
“A point-of-sale system is one of the finest investments a merchant can make since it prevents shop performance concerns from being overlooked. Starting on Day One, POS systems enable businesses to run more successful operations by controlling inventory movement and item velocity. We have yet to meet a retailer who can provide us with more information on performance and profitability than a POS system. You must see a POS system as an investment rather than a cost for your business.”
—Rich Kizer & Georganne Bender, Retail Store Design Consultants at Kizer & Bender
Certain features, like as Bluetooth connection and backup capabilities, increase the cost of a cash register. Expect to spend extra for a higher-end model if you need to program several hotkeys for discounts, combinations, departments, or other features.
Basic POS applications run on a smartphone or tablet, making them ideal for mobile or low-volume transactions, as well as companies that just need to ring sales. Some POS systems that need more sophisticated inventory, customer, or back-office administration use POS-specific computers or hardware. POS hardware expenses may vary from Basic POS apps can operate on a smartphone or tablet, which works well for mobile or low-volume sales, or businesses that just need to ring sales. Some POS systems with more detailed inventory, customer, or back-office management operate on computers or hardware that’s specific to the POS system. So, depending on the needs of your business and the program you choose, POS hardware costs can range from $0–$1,500 per station. to $1,500 per station, depending on your business’s demands and the application you pick.
Feature Comparison: POS System vs. Cash Register
Processing of Payments
If you install a credit card terminal to your cash register, it will monitor cash and check transactions as well as credit card sales. Customers may be given receipts, sales taxes can be added and tracked, and sales can be totaled for the day. Prices may be manually input or programmed using department keys. Cash registers, on the other hand, do not have the ability to accept credit cards. To take credit card payments, you’ll need to open a separate merchant account.
Like cash registers, POS systems can accept cash and check payments. And unlike cash registers, POS systems typically have built-in credit and debit card Processing of Payments. Having all of your Processing of Payments tied together in one system allows for more accurate sales reporting and helps prevent human error at checkout.
POS systems, like Square Register, have built-in Processing of Payments capabilities, along with advanced cash register functions like a customer-facing display.
Square Terminal is an all-in-one POS register that can ring transactions, process payments, monitor sales, and generate receipts.
Portability & Mobile Features
Traditionally, cash registers aren’t made for mobility. They sit on countertops and customers bring purchases to the checkout. There are a few models that can be considered portable, like the Sam4s ER-180u, which is compact and includes a cash drawer and receipt printer. However, you can’t integrate Processing of Payments to accept credit cards, and there’s no mobile connectivity.
The Sam4s ER-180u is a 12-pound portable cash register with a receipt printer built in. However, there is no option for mobile connection or connecting a card reader. (Image courtesy of cashregisterguys.com)
A mobile POS feature is available on many POS systems. With its card reader and mobile POS software, Square makes it simple to collect payments on the move. However, Square isn’t the only choice; Shopify, Clover, and Toast all provide mobile solutions that may be more suitable for your company. To keep lines moving, all of the options work well for mobile enterprises or on-the-floor transactions.
With an inexpensive Square card reader and free POS software, you can use your smartphone to ring sales and handle payments.
Sales Tracking & Reporting
Cash registers may give basic daily sales totals, and some can provide departmental reporting if that option is enabled. Basic cash registers, on the other hand, don’t provide highly detailed sales or tax totals, nor do they offer a means to automatically subtract inventory when it sells. You’ll need to manually monitor inventories and financials in spreadsheets or notebooks.
A POS system may generate reports based on a large number of data points. For example, Square POS can provide you with sales data for any time period, outlining your sales by product category, payment method, client type, and employee. Square POS even has a reporting dashboard that you can design to show your critical data in a single look. The Square app also gives you access to critical analytics like gross sales, sales count, and refunds.
You may configure the Square POS Reporting and Analytics Dashboard to display the data you desire. (Image courtesy of Square)
Get a thermal receipt printer that integrates with your cash register or POS system—mobile printers are also available.
Tools for Business Management
A cash register is a straightforward system that primarily focuses on cash management and sales monitoring. It lacks back-end administration functions such as inventory and buying management. Employee sign-on credentials may be assigned to monitor sales per employee, but there are normally no time-tracking or payroll services.
Some higher-end cash registers allow you to personalize your receipt, allowing you to include a thank-you letter at the bottom of each one. You may also use this opportunity to provide a voucher or a discount. A standard cash register, on the other hand, cannot monitor consumers or develop a loyalty program.
Some cash registers, such as Casio’s high-end ones, allow you to personalize receipts. This functionality (along with customisable digital receipts) is, nevertheless, commonplace in POS systems. (Photo courtesy of Casio)
A POS system’s software is far more complex, and it normally contains a number of functions to assist you in managing the back-end of your retail store or restaurant. Integrated inventory may help you keep track of your stock—each sale changes the inventory in your POS system, so you always know what you have on hand.
Staff logins for tracking sales and employee hours are available in many POS systems. Some include functions such as payroll and shift scheduling. Furthermore, some POS systems have customer relationship management (CRM) tools, which make it much simpler to communicate with consumers and clients through email marketing campaigns or loyalty programs.
Ease of Use of a Cash Register vs. a POS System
Both cash registers and point-of-sale systems are simple to use. For inputting products or prices, cash registers use manual buttons, while POS systems use a touch screen. Both need little training and are designed for use in high-volume retail contexts.
Push-buttons are used to input prices and products into cash registers. When opposed to a POS system, the functionality of a cash register is fairly simple, therefore there are less things to learn. However, whether a person prefers an analog system or a digital touch screen is generally a matter of personal choice.
Although POS systems have a higher learning curve than conventional cash registers, this is mostly due to the fact that they have many more capabilities than just ringing sales. Learning how to use a POS system should be simple if you are familiar with other software packages and touch-screen devices.
Customer Service Comparison: Cash Register vs. POS System
It’s like comparing apples and oranges when it comes to customer service for cash registers and POS systems. One is a hardware component, while the other is a software application. If a cash register malfunctions or requires troubleshooting, you should contact the manufacturer. Your monthly subscription price for POS systems usually includes quick customer care and a dedicated account representative.
Cash registers are available from the manufacturer or through retailers such as Staples, Office Depot, and Walmart. The greatest customer service and product warranties are generally found when purchasing straight from the manufacturer.
If you buy a discontinued Sharp or Casio cash register on eBay or Amazon, you may not be eligible for troubleshooting assistance. When you buy a discontinued piece of hardware, you’ll have a hard time acquiring new components.
Customer care representatives are often accessible by phone, email, and, in some cases, live chat on the POS’s website. Many POS providers, like as Square, may provide consumers with a personal representative. Community forums, whitepapers, and other resources are also accessible for POS cash register systems.
Conclusion
A low-cost electronic cash register, which can handle basic store checkout and payment requirements, costs about $150. For some, it’s the ideal option. A POS cash register system, on the other hand, is the solution if you want to operate your retail company effectively and have growth-driving data and tools at your fingertips.
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