POS system - What is a POS system?

A POS system – short for Point of Sale system – is a combination of software and hardware that enables business to process sales transactions.

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Modern POS systems also simplify business operations and play a key role in stock management.

The term POS refers to the time and place where a sales transaction is completed, whereas a POS system refers to the software and hardware that actually processes the transaction.

Traditionally, POS systems solely supported sales of goods and services – including processing credit cards and printing receipts. Developments in technology have enabled modern POS system to go beyond sales transactions, and many POS systems now simplify day-to-day business activities by capturing customer data, creating financial reports and analysing sales and purchasing patterns.

POS systems have lead to the digitalisation of stock management, enabling businesses to implement perpetual inventory systems.

Traditional POS systems vs. cloud-based POS systems

Advances in technology have changed the nature of POS systems. Traditionally, POS systems ran on a closed, internal network and store data on local servers. These were called ‘legacy’, ‘on-premise’ or ‘traditional’ POS systems.

Today, software is shifting towards cloud-computing and many POS systems are now cloud-based, whereby web-hosted system are accessed through an internet browser and data is stored remotely in the cloud.

Cloud-based POS systems are becoming increasingly popular at the expense of legacy POS systems. This is because:

• Cloud-based systems are accessed through an internet browser, so are available anytime, anywhere so long as you have a device with access to the internet.
• Cloud-based POS systems can be accessed on mobile devices, such as tablets or smartphones. These devices can also serve as barcode readers thanks to developments in OCR technology.
• Compared to legacy systems, cloud-based POS systems are easier to maintain as updates can be installed regularly, quickly and easily. Cloud-based POS systems can be updated to fix any bugs, keep up to date with advances in technology or any changes in regulations without having to wait for the next edition.
• Cloud-based POS systems are stored on external servers so do not take up space on your local hard drive.

POS systems in Debitoor

Finding a good POS system is essential to the running of your business. But once you start making sales, you’ll need a way to manage your transactions. This is where Debitoor invoicing software comes in.

Debitoor integrates with SumUp – an app, card reader and mobile POS system that lets you accept payment from customers anywhere, anytime. The Debitoor-SumUp integration ensures that any payments processed through the SumUp card reader are automatically registered in your Debitoor account.