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The POS Register vs. The Cash Register- A Thorough Comparison

By Lauren Christiansen
The POS Register vs. The Cash Register- A Thorough Comparison

What is a POS Register ?

A point of sale (POS) cash register is an electronic solution to process transactions. Many restaurants use these in place of traditional cash registers because they are faster, more reliable, and can integrate with other restaurant software. The POS register enables you to hold cash, process credit card transactions, send receipts either physically or digitally, and calculate tax rates.

What is a POS Register?

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A Point-of-Sale (POS) register is an electronic system used by restaurants and retailers to facilitate customer purchases. The system records when goods are sold, the amount the customer paid, the total cost of the sale, and the date and time of the purchase. Cash register POS solutions offer a seamless, integrated view of the business while reducing manual data entry.

The overarching purpose is to track the company's financial transactions and minimize errors. Many restaurants replaced traditional registers with POS solutions to minimize theft, streamline processes, and perform analytics. With handheld and mobile integrations, waitstaff and kitchen staff have an easier time performing tasks. POS registers can also integrate with online ordering systems to maximize profits for delivery and takeout.

A POS cash register system is credited with increasing process efficiency, reducing labor costs, and improving customer service. Restaurants can also optimize inventory management, as each inputted order immediately updates the amount of stock on hand. This improves the reordering process and ensures customers can always eat their favorite items.

What is a Cash Register?

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You've probably confused a cash register with a POS system. And it's no wonder, as they have many similarities. Cash registers are simply business machines that have been used for over a century to record transactions.
They are input-output devices that consist of paper rolls, printers, bill validators, coin mechanisms, paper-tape readers, and keyboards. There is also a drawer at the bottom to hold all of the cash and/or checks. Cash registers are placed at the point of sale, which is usually at the front of the restaurant. Restaurants that still use old-fashioned cash registers may have more than one to process transactions. They are either mechanical or electronic, depending on the functionality.

Key Distinctions Between a POS Register and Cash Register

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Have you ever been to a restaurant and been charged a percentage fee for paying with a credit card? If so, you've been to a restaurant with a point of sale or POS register. A POS register is a computerized cash register that a business uses to process sales.

It is a more modern version of a traditional cash register. But there are other distinctions between these two frequently confused devices. Read ahead to learn the top 4.

1. POS Systems Track Inventory

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One of the main challenges for restaurants is ensuring all profitable and popular menu items are available to customers. The bigger the chain, the more difficult this task becomes. POS cash registers resolve this issue because they track inventory. The computerized solution tracks each menu item that is purchased. Restaurants can use this information to place orders within minutes of knowing an item is out of stock.

Because all data is held in one centralized location, supervisors know exactly which items sell quickly. They can use inventory knowledge to optimize reordering and cut back on waste. This helps to save money and improve customer satisfaction. An old-fashioned cash register doesn't perform the same inventory functions. Owners have to go back and review printouts at a later time to see what to reorder. This slows down the inventory process and increases the number of potential errors.

2. POS Registers are Customizable

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Old-fashioned cash registers are not typically customizable. They are a one-size-fits-all solution that cannot be easily updated. A point of sale system consists of both hardware and software. The software functionality enables quick updates and simple customizations to align with the restaurant's business needs. You can easily update menu items, input employee data, print out various reports, and program certain functions.

A cash register doesn't allow any of this. For large chains, cash registers simply aren't feasible for this reason alone. Managers need instant alerts to make quick decisions that impact dozens of employees. A customizable pos terminal is critical to maintaining a competitive edge.

3. Cash Registers Can't Streamline Processes

Cash registers are simply for processing transactions. If you want to streamline processes and review data insights, you need additional restaurant software. But why purchase more than one system when you can do all of these functions through one centralized view? That's what a POS system does for you.

POS solutions not only hold all customer data, but also employee data, inventory data, loyalty program data, and more. This enables managers to keep tabs on everything going on in the restaurant. Moreover, they can connect the dots between sectors to optimize decision-making and resolve problems.

For example, a manager notices that sales are low at the same time each day. He then reviews employee data to see who operated the system at that time and discovers that the individual has also been frequently absent and late. The manager may then use that information to talk to the employee and/or discipline them.

4. POS Cash Registers and App Integrations

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Back in the day, waitstaff had to take orders manually and carry them back to the kitchen staff. This process was time-consuming and ripe for error. Now, POS software integrates with mobile and handheld devices. Waitstaff can take orders through a handheld device. The order is then immediately sent back to the kitchen within a few seconds. Waitstaff can also process payments through these devices, or search for loyalty points. This speeds up tabletop turnover and helps food come out much faster.

Furthermore, you can integrate your online ordering site with a POS app to process online transactions. Or, you can ensure all sales data immediately goes to accounting apps to help manage financials. Business owners are stressed out enough. A POS cash register system can help save them a lot of time.

The POS Register vs. The Cash Register- A Thorough Comparison People also ask

What is a POS (Point of Sale)? POS is simply the system that tracks the purchases made in a store. The system is comprised of software that tracks the inventory and the purchases that are made. The POS also includes hardware like cash registers and barcode scanners. A POS is vital to running a retail business. There are many different types of POS systems on the market.

Have you ever seen a POS machine? There are a lot of acronyms in retail, but POS stands for point of sale. That's the computerized system you'll find in a register or a cashier's workstation. POS is a retail business's most important system because it's the means of recording sales, calculating discounts, and generating reports. The system is made up of a touchscreen and a card swipe.

POS stands for point of sale and it's a system that companies use to process transactions. A POS system is often referred to as a cash register, but that's an antiquated term due to the fact so many retailers are using card readers these days. Many people use the terms interchangeably, but POS systems are actually more advanced than the cash registers of the past.