Many business owners are often confused about the difference between a cash register and a POS system. Both serve similar purposes—process sales, make payments and keep track of everyday sales transactions. Yet, there are specific differences between the two. In this article, we compare cash registers vs. POS systems to help you decide which is best for your business and budget.
Cash Register vs. POS System: At a Glance
Cash registers and point-of-sale (POS) systems have become a standard feature in retail stores all around the world. They are both vital business tools used for processing payments and tracking inventory.
Cash registers are machines used to process transactions such as sales, refunds, returns and deposits. Although the merchant side of business resembles a cash register, POS systems have become the preferred choice of many retailers due to their advanced features. A POS system can be thought of as an electronic version of a cash register (or a “cash register on steroids”) because it incorporates more functions that allow businesses to run more efficiently with informed decisions.
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What Is a Cash Register?
A cash register is a device used to process payments. It allows you to input data into it and then print out receipts. All cash registers have an input keypad and display (touch)screen for entering information, and cash drawers for storing money. They are usually found in retail stores where customers make purchases with cash or credit cards.
When To Use a Cash Register
If you want to keep things simple, use a cash register. Cash registers are great for smaller businesses that need to quickly process transactions. It’s a great option if:
- You’re on a tight budget. Traditional cash registers can cost anywhere from $100 to $500, unlike POS systems, which typically cost about $1,000 per annum.
- Your business can work with basic sales reporting and not require sophisticated analytics.
- You need a safe and secure method to store money. Cash drawers are secure systems that can only be opened by authorized individuals.
- You’re just starting a business and need a low-cost solution that’s easy to use and maintain.
Top Cash Register Providers
Forbes Advisor has ranked the best cash registers for small businesses according to cost and fees, ease of use, POS features and overall value. These cash registers include:
- Shopify Retail Kit
- Clover Station Duo WiFi
- Square Register Kit
- eHopper All-In-One POS System
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What Is a POS System?
A POS system is a computer-based cash register and point-of-sale software that allows you to take orders, process credit card payments, track inventory and manage your employees. It can also be used for other tasks such as creating invoices or automating daily business processes.
It’s also “a hardware and software” combo, which means that with a POS app and connected device such as an iPad, a tablet or phone, you can check out as a customer.
When To Use a POS System
You should definitely go for a POS system when:
- You have to get multiple cash registers for your business. This is probably because they are located in multiple places or have several serving points in one place. You need a system to sync all data automatically without the stress of manual computation.
- You have extensive inventory that needs to be continuously tracked and managed.
- You have a large business with lots of staff that needs to process payment simultaneously.
- You have plans of scaling your business and increasing workforce.
Top POS Systems
Forbes Advisor has ranked the best POS systems for small businesses according to price, ease of use and functionality. These POS systems include:
- eHopper POS: Best for Omnichannel Businesses
- Lightspeed POS: Best for Customer Loyalty
- Clover: Best for Integrations
- Square POS: Best for Businesses on a Budget
- Toast: Best for Restaurants
- Shopify POS: Best for Retail Businesses
- KORONA POS: Best for No Transaction Fees
- PayPal POS: Best for No Monthly Fee
- Aloha Cloud: Best for Next-Day Payments
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Bottom Line
Both cash registers and POS systems can be used in a variety of businesses. If you’re just looking for an easy way to handle sales and inventory, then a cash register might be all you need. However, if your company has a lot of transactions happening throughout the day, then using a computerized system will be beneficial towards keeping track of everything efficiently.
Frequently Asked Questions (FAQs)
Why is a POS system better than a cash register?
While a cash register just helps in processing sales, a POS system will allow you to track inventory, customers and sales in real time. It will also let you manage your employees and customers’ transactions more efficiently.
Why is a register called a POS?
A POS is short for “point of sale.” The POS is where customers pay for items and make payments.
How much does a POS system cost?
The cost of a POS system depends on the features you need and the size of your business. Some systems are free, while others can cost hundreds or even thousands of dollars per month.
