A retail store cannot survive without a robust cash management system. Retailers used to perform manual cash management and transaction recording in the past. But, things have changed in recent times. Electronic devices have replaced humans to streamline the cash management process in a store.
In most retail stores, you will find two kinds of systems for cash management. Small enterprises use electronic cash registers, while large-scale retailers use POS systems. A computerised point-of-sale system is more advanced than electronic cash registers. This article will discuss the differences between POS and electronic cash registers.
What Is a Cash Register?
A cash register is an electronic device that comes with a money drawer. The device can record business transactions in a store. The business owner can use the device to view transaction records for sales tracking. Additionally, the cash registers can calculate taxes and generate receipts for the customers.
James Ritty, a wine and cigar merchant in the United States, had invented the cash register device in 1879. At that time, employee theft was a big concern for the retailers. Therefore, business merchants wanted a full cash register to record the transactions.
The invention of the electronic cash register machine was a sigh of relief for many retailers. However, the device is not fully capable of reducing employee theft. Rampant employee theft continued for a few decades, and many retailers have shrunk due to this reason.
The benefit of a cash register is that the device can register transactions electronically. After completing a transaction, none can erase or edit it. As a result, it gives protection against employee scams to some extent. But, cash registers do not come with features like credit card transactions, barcode scanners, inventory tracking, etc.
An Introduction to Modern POS
Point-of-sale (POS) is the checkout counter of a retail store. After adding various products to their carts, buyers have to reach the POS counter to complete their transactions. A modern POS system ensures buyers’ quick, hassle-free, and seamless checkout service. As a result, the satisfaction of the buyers increases.
At the same time, businesses can proficiently complete the payment processing without any errors. It eventually saves time for a business and reduces the workload of the point-of-sale executive. Typically, a POS system comes with many hardware components that have been assembled and connected with the software component.
The modern POS systems come with cash drawers. A seamless connection between the hardware and software helps the business owners to track inventory, sales reports, pending orders, invoice templates, transaction records, and many more. Traditional cash drawers are not compatible with POS software, and thus you need to find POS compatible cash drawers for your store.
Experts consider the POS an advanced version of the electronic cash registers. In the 1970s, cash registers came into the picture. Since the 1990s, the computerised POS started replacing the old electronic cash registers. Today, most retailers have upgraded to modern POS devices.
POS and Electronic Cash Register — Understand the Differences
Modernisation of the checkout counter is essential for two primary reasons. Firstly, people do not want to stand in a long queue during checkout. Wasting time on the checkout counter leads to a bad customer experience. Therefore, the retention rate of your retail store may decrease.
Secondly, a modern checkout counter helps the business owner track sales, bills, and other crucial things. The efficiency of a business increases, and the chance of scams will reduce to a large extent. In the following section, find differences between POS and cash register devices.
1. Features and Functionality
Cash register comes with limited features compared to the modern POS system. A cash register can record transactions on a digital platform. Using the cash registers helps businesses to access their sales reports. However, POS provides more detailed sales reports with graphs and charts. You can find more insightful data on the POS computer.
The cash register does not include inventory management, employee management, etc. If you want to avail these features at the checkout counter of your retail store, you should invest in POS systems. Typically, a POS computer has inventory management and employee task distribution software. Thus, managing the business becomes easier by installing a POS counter.
2. Hardware Unit and Expenses
An electronic cash register is a small and compact device that includes a printing outlet, drawer, and a small screen. You do not need to invest in hardware and software to develop an assembled cash register. But, a POS system depends on various software and hardware elements.
The POS system connects hardware and software. For example, a modern POS system needs barcode scanner, receipt printer, cash drawer, and many more. An electronic cash register does not need such external hardware units. A perfect harmony of the two components develops a seamless POS system.