Depending on their size, retail stores are comprised of thousands or millions of products. The products are sold and restocked at a fast pace. Naturally, the process of production demands an accurate and reliable inventory management system to ensure smooth work flow.

Point of sale refers to a checkout counter of a retail store or a place where transactions happen. Abbreviated as POS, this term also refers to a computerized cash register. At present, Point of sale systems are widely used in retail stores. POS is similar to electronic cash register, which keeps track of transactions, as well as detailed information about every purchase (date and time, cashier information, and such). Small business POS systems are in demand as more and more businesses are being established worldwide.

A computer, receipt printer, cash drawer, bar code scanner, modem, and POS software comprise a typical POS system. Each component has its own function. The computer, in general, serves as the operator for all other hardware components. Moreover, this is where the POS software is installed. The software installed gives the interface and controls the devices while the modem links the system to another. The bar code scanner scans the unique barcode of every product. Lastly, the receipt printer provides the paper or tangible copy of the transaction in detail while the cash drawer secures the cash payments.

There are many business types that could benefit from the use of POS systems. Retail is the most common type but the health industry, hair and beauty salons, restaurants, hotels, and hardware stores can also make use of these inventory management systems. Small business POS systems are of high demand at present as businesses of this scale are being established at a fast pace.

Depending on the preferred features of the owner, large and small business POS systems are highly customizable.  The recent developments in POS systems granted more features. The latest POS system features allow employees to work more efficiently without sacrificing accuracy. One very useful added feature is automatic pricing. Instead of employees entering a department code and the item price, they will just encode the stock keeping unit (SKU) of an item, and the POS will retrieve its price. Other added features include: customer relationship module (CRM), e-Commerce integration, gift card management, service order management, and electronic ordering.

POS systems are sophisticated solutions to growing business needs. As technology advances, these point of sale systems will become more powerful, giving every business (of any scale), the accuracy and convenience it needs in its inventory management.

Choosing the right inventory management software for your retail business is critical to your success. Make sure to study and do your research when buying the right inventory software for your retail business.