What Do POS Systems Track? 14 Things a Good POS Can Monitor

A point of sale (POS) software is a powerful tool that makes transaction management easier and provides valuable insights into business performance. What exactly do POS systems track? A good POS software tracks the following things:

1. Sales
2. Inventory
3. Product information
4. Customer data
5. Supplier purchases
6. Payment information
7. Returns, trade in and buy back
8. Employee performance
9. Taxes and accounting
10. E-commerce platforms
11. Loyalty program and gift cards
12. Rentals
13. Repairs
14. Reports

But before we dive into what a POS system can track, let’s see what a POS system is.

What is a Point of Sale System?

A point of sale system is a set of technologies that allows retailers to process transactions, accept payments, and track a lot of relevant information. A POS system makes it possible to centralize daily activities (sales, inventory management, customer data management, etc.).

A point of sale system is made up of computer hardware (monitor, barcode reader, customer screen, cash drawer, receipt printer, tablet, computer) and a point of sale software. Everyone knows the typical cash register used as a point of sale, but today the point of sale system often consists of a software downloaded on a tablet or on a computer connected to a payment terminal, a printer and a cash drawer.

When we buy something, whether online or in store, we are all interacting with a point of sale, even if we do not know it. Retailers need a point of sale software because this type of software helps to better manage a store, speed up business, increase brand awareness and achieve success. Powerful POS softwares can even make it possible for you to sell, rent, trade, and repairs in one transaction!

Discover here 27 of the advantages of a point of sale system for your store.

A point of sale software includes many useful features for store managers. Here are 14 things POS software can track for you.

1. Sales

A POS software simply records all transactions made either in-store or online. It records the date, time and details of each product or service sold. This helps keep tabs on revenue and inventory levels.

A point of sale software like Alice POS allows you to accept the payment method chosen by the customer. At the end of the day, you can also see the total number of all transactions made for each of the payment methods you accept.

2. Inventory

A POS systems track inventory and the number of products remaining in real time. The software updates the quantities automatically with each sale.

A POS software also tracks products on consignment and the profits that you must hand over to the supplier of the consignment product.

When you receive your inventory, you just have to scan everything and it will end up in the software. With the software, you can easily see the number of goods you actually own. You can thus know if there have been losses or thefts.

You can also configure certain POS softwares, such as Alice POS, to alert you when the inventory levels drop below a determined threshold, so that you know when to place an order with your suppliers. The POS allows you to know the current stock and have greater control over your inventory. It simplifies the difficult tasks related to the inventory!

3. Product Information

A point of sale software stores a lot of information about the products you sell, such as their name, description, price, and applicable discounts. The software uses this data to calculate the total purchase amount without errors and faster than calculating mentally or with paper and pencil.

Point of sale software also makes it possible to track items very closely thanks to serialization capabilities. With these capabilities, items are assigned a unique serial number for life. This number allows the software and you to track the item each time it passes through your store. A serialized item system is especially useful if you offer rentals.

4. Customer Data

A point of sale software records information about your customers. This information can be their name, phone number, email address, purchase history, etc. This information allows you to better understand your customer base and have an overview of your customer groups (new, returning, belonging to a certain demographic, etc.).

However, it is important to implement data collection and storage practices that guarantee the confidentiality of customer data and that comply with the laws of the territories where you have stores. This includes choosing a secure point of sale software.

Generally, businesses in Canada must submit to the Personal Information Protection and Electronic Documents Act. 

In Alberta, Quebec and British Columbia, there are other laws related to personal information that apply instead of the federal law. Make sure that you know them and that you comply with them.

With the Personal Information Protection and Electronic Documents Act, companies must comply with obligations regarding collection, use and communication of the information. Companies must also have the consent of the person concerned in order to be able to use, communicate and retain their personal information.

In the United States, there are no federal data privacy laws regulating many companies. But there are states that have adopted laws regarding personal information protection. You have to know those laws that apply in the states where you have a store and comply with them.

The goals of those laws are to:

• Allow citizens control over their personal information.
• Increase the protection of personal information.
• Ensure that companies manage personal information responsibly.
• Promote corporate transparency when it comes to personal information.

In short, privacy laws exist to protect citizens.

This list is not exhaustive. Be sure to research the laws you need to follow carefully either in your state if you are in the US or in your province or territory if you are in Canada. You can even consult an attorney to verify that you are compliant with the laws related to personal information.

5. Supplier Purchases

A point of sale software can connect to your suppliers and allow you to place your orders quickly and easily. This connection also allows you to have all the products and information about them (quantity, value, description and other) directly in your point of sale software. Imagine the time you will save by not having to transfer everything yourself!

A good POS system also allows you to track all your orders placed and thus have more control over purchases and the products ordered from your suppliers.

6. Payment Information

It is the point of sale software that is responsible for processing all transactions and recording payment information and invoices. This information will later be useful for completing transactions, keeping financial records up to date and emailing invoices to the customer if so desired.

7. Returns, Trade In and Buy Back

When a customer returns a product or wants to exchange it, the point of sale software goes back to fetch the transaction and records the reason for the return or exchange and all other relevant information related to the refund or exchange.

If your store is interested in buying products that customers want to sell in order to resell them later, a point of sale software can help. A POS software that tracks buy back and trade-in allows you to buy and resell an item simultaneously. The software records the products bought back in your system and allows you to increase the speed of transactions and avoid errors.

8. Employee Performance

With a good POS software, you can see sales by employee, their sales by time frame and the hours they worked. This allows you to measure their productivity, sales performance, and calculate bonuses or commissions.

The point of sale tracks the hours worked by each employee and the access list.

9. Taxes and Accounting

A point of sale software tracks taxes on products sold. It can help you calculate taxes and file your tax returns. It also provides you with useful data for accounting purposes.

This helps to organize the financial management of the store and to ensure that everything is in order. Thanks to the reports generated by the software, you can know quickly and with a reduced risk of errors the amount of taxes you have collected. A point of sale software is not the same as an accounting software. Click here to know the differences between POS softwares and accounting softwares.

10. E-commerce Platforms

A POS software allows you to track sales, online orders, and inventory in only one place.

With a POS, you can create products, whether they are new or used, in your online store and transfer the description, prices, quantities, promotions, images, attributes and dimensions of the item there. You can track the products you sell online by category.

You can also synchronize your orders between your point of sale software, such as Alice POS, and your transactional website. The POS thus keeps track of orders made online. It also keeps track of new customers who have purchased online.

Inventory synchronization from the software is also possible. You can sync prices, promotions, product photos, product categories, attributes, descriptions, and product names. This synchronization allows the point of sale software to track all the information and update it in your online store when you change it in the software.

By syncing the inventory you’ve entered into your POS software with your Shopify, WooCommerce, or Ecwid online store, you ensure you always have the items customers want in-store or online. It also helps to keep inventory levels up-to-date, both online and in-store, thereby reducing waste, avoiding stock-outs and overstocks, and making your business more profitable.

Click here to learn more about e-commerce integrations (Shopify, WooCommerce, and Ecwid) with Alice POS.

If you have a transactional website, a point of sale software allows you to track the same things as in a physical store.

It can track online sales, payment information, loyalty programs (and related points and rewards), returns, exchanges and refunds, among other things. All product information stored in the software can also be synchronized with your transactional site.

The software also stores customer data. When a customer makes a purchase, the software takes their information, such as their contact information, purchase history and preferences. This allows you to better categorize contacts, know their needs more precisely and adapt your marketing strategy and your offer accordingly.

11. Loyalty Program and Gift Cards

A POS software helps to keep track of loyalty program members’ points and whether they have enough to get a reward. The software stores all information related to members, their purchase history and the number of points they have accumulated. So you can easily manage the loyalty program and the rewards you offer.

The point of sale software also remembers the amount remaining on a gift card, which makes it easier to manage them. You also have access to reports on gift cards, where you can see the balance of each of the cards and their initial amount.

12. Rentals

A point of sale software closely tracks the products you rent. You can rent items and track all the rentals you make. This allows you to track rental details (such as late fees, rental date, number of days since the product was rented, expected return date, description, name, code and cost of the product, the name of the customer, the telephone number of the customer, the employee who made the rental and other information which may be useful to you).

Offering rentals can increase your income!

13. Repairs

If you offer repairs, a POS software helps track every step of the repair process. It tracks used parts, missing parts and allows you to send updates to the customer. You can also set up custom statuses.

The point of sale software makes it possible to follow very closely the status of the repair, the number of days since the repair request and all the relevant information on the item concerned.

14. Reports

A point of sale software records lots of data on sales, inventory, employee performance and much more. Today’s point of sale solutions are often cloud-based, which means that transactional and inventory data is stored in the cloud, safe from unauthorized access.

A good point of sale software has advanced reporting features that gives you access to information on all aspects of your business. These reports cover accounting, staff, inventory, purchases, loyalty program and sales. These reports are even created automatically!

The software tracks, for example, sales by employee, sales by time slot, customers who have store credit, products transferred to another store belonging to your network and the list of contacts.

The software also records the profits made and gross margins on the products and services you sell, allowing you to quickly know if you have achieved your business goals. A huge time saver not having to calculate everything!

Learn about all types of POS data here.

The analysis of this data collected by the point of sale software allows you to optimize the management of your business and make decisions that will help increase your income. They let you know which stores and which employees are performing the best and deserve to be rewarded.

Finally, a powerful point of sale software is much more than a simple tool for transactions. It provides retailers with in-depth visibility into their operations, allowing them to track and manage several critical aspects of their business. From managing inventory to collecting customer data and analyzing sales performance, a point of sale software is an essential ally to stay competitive.

By investing in the right POS solution tailored to their specific needs, businesses can optimize their operations, boost their success and stay ahead of the competition!