The term “point of sale” refers to a system that is widely utilized in the restaurant and retail industries. This automated method enables company owners to keep track of sales, cash flow, and food inventories, as well as greatly simplifying accounting.
Why is POS beneficial to a restaurant?
The huge amount of cash and credit cards that travel through a restaurant every day necessitates the use of a point-of-sale system. A POS system not only keeps track of every cent of your transactions, but many also operate as credit card processors. This increases the security of credit card swipes for both the client and the company. Servers are responsible for all sales, and changing checks in the computer is impossible without a password. Employee theft is reduced as a result of this.
One of the advantages of using a POS system is that it makes communication between the kitchen and the wait staff easier. Orders are entered into the computer and sent to the kitchen printer. Another advantage of using a restaurant POS system is that it can keep track of anything from food consumption to the most popular menu items. Because the POS system also functions as a time clock, it may assist with payroll preparation. In your accounting department, this may save you a lot of money. A POS system may arrange profit and loss statements as well as sales tax, in addition to the day-to-day activities of operating a restaurant.
The most apparent disadvantage of any POS system is that it is a computer that is susceptible to the same technical whims as any other computer. You risk losing all of your data, not just sales, but profit and loss statements and payroll statements, if it crashes and you don’t have a backup. Important information that the IRS may want to look into at some point. As a result, always have a backup plan.
Problems with Warranties
Do you recall how much money you saved on bookkeeping? You could wind up spending cash on your IT person to assist you to set up the POS and fixing any issues. A point-of-sale system does not have the same longevity as a traditional cash register. Parts will need to be replaced, the software will need to be updated using the internet, and the unit will ultimately need to be replaced with a new one. New POS systems come with limited warranties and technical assistance, but just like any other piece of equipment, issues appear to arise after the warranty has expired.
You may always purchase additional technical assistance to solve this issue.
If you’re launching a small business, such as a bagel or sandwich shop, you may not need a POS system right away, particularly if you’re not going to accept credit cards (and there are still lots of establishments that don’t). However, if you plan on growing or franchising, you should include in the cost of a point-of-sale system in your startup expenditures.