One of the most vital steps in setting up a small business is to choose the right cash register. Easy as it sounds, people do not always make the right choices by their business. The most important question is the choice between whether to buy a cash register or a point-of-sale system. Ultimately, the answer is dependent on many factors.
Firstly, how much you are willing to spend and secondly, what your business requirements are. Choosing an expensive POS system worth thousands of dollars would not seem like a wise choice if your business is only trading small and would take days or weeks before you get your money back. On the other hand, buying a small cash register for a business trading hundreds of transactions a day would of course result in unhappy waiting times, and decreased employee job satisfactions. That being said, the business may expect quick growth, thus needing a more advanced POS system.
Here is a few questions to ask yourself when you are deciding on a cash register:
1. How many departments do you have in your store? Departments may be categorized into individual products or a group of products you may sell in the same price point.
2. What is your total inventory level? Do you have tens or hundreds of units or each of your products? And do you need a way to keep track of them more easily?
3. How many departments will you need in the future? Are you planning to grow your business further in the short term? If so, you may need a more advanced system to avoid having to obtain a new POS system later on.
4. Will you need more than one cash register?
5. What tax structure will your business operate on?
6. Will you be accept coupons or does your business include membership benefits for your customers?
7. What type of payment methods will your business be accepting?
For new business owners and new entrepreneurs, remember to keep your decision making objective. New businesses always involve a certain level of emotions, so make sure your decisions are based on the benefits of the business.
Benefits of POS systems:
1. More detailed reports.
2. Better track inventory.
3. Improved accuracy.
4. Easily grow with business.
Benefits of Cash Register
1. Low cost for start-ups
2. Most models easy to use.
3. Fewer components.
4. Basic functions and reporting.
However, in this article, we will be focusing mainly on cash registers, so if you have a small business and you need something to handle simpler transactions for you, have a look at the list of things below to help decide what cash registers may benefit you best.
* How many departments do you need - departments are keys/buttons available for quick and easy item transactions entries and categorizing sales.
* How many PLUs do you need -The price-look-up PLU function is a number assigned to each item that also has a price associated to it providing individual item sales.
* How many clerk numbers do you need - Conventional cash registers will allow you to add details of your employees as operating clerks in the system. This help track all activity of each employee when operating on the registers.
* Do you need a LCD display for your customers - Some cash registers will have an LCD display available for your customers to see the subtotal of their transactions.
* What type of drawer do you need - In the cash drawers, you will have compartments to keep cash notes and coins.
* How many different tax rates will your business handle?
In conclusion, although the task sounds menial, choosing the right cash register is absolutely vital and may determine how smoothly your new business runs. So make sure that this step is included in the business planning stage.