The content of this article is provided for informational purposes only. You should always obtain independent business, tax, financial, and legal advice before making any business decision.
An ‘old school’ cash register used to help businesses accept and store cash payments, and that was pretty much it. A modern cash register – or point-of-sale (POS) system – accepts all kinds of mobile and card payments, gathers and analyzes customer data, manages inventory, automatically calculates tax, and stores everything safely in the cloud.
Today the POS system meaning typically refers not only to a singular cash register, but can include multiple components, such as a terminal, tablet, bar code scanner, and monitor. Essentially the POS system is an entire payment hub for a business.
However, having so many hardware and software options within the system can create greater complexity for a business. That makes selecting and knowing how to use a cash register key to creating frictionless payments.
There are several types of cash register systems available in the market, each designed to cater to specific business needs. One common model is a traditional cash register, which includes basic functions like ringing up sales, calculating totals, and providing a cash drawer for storing money.
POS Technology has evolved significantly and now offers a variety of features and capabilities for a wide range of business sizes and types. Typically, many businesses opt for POS systems, which are comprehensive solutions that integrate hardware and software. They’re not only means of storing money in a cash drawer, the systems often include touchscreen displays, barcode scanners, card readers, and detailed inventory management.
POS systems are ideal for businesses of various sizes, from small shops to large retailers and restaurants.
When selecting a cash register for small business, consider the following factors:
First, place your POS System or cash register in a convenient place on your premises. It should be on a flat surface where you and your staff can operate it on one side and customers can pay on the other.
Think about where and how you want your customers to move through your business’s space when considering the cash register position. Depending on how your business operates, the ideal POS counter space may be close to the entrance so you can greet customers, at the back of the store, or in a comfy consultation space with seating.
Once you’ve chosen the perfect spot for your cash register, it’s time for cash register set-up. The setup itself may only take a few minutes, or you may need longer depending on the complexity. Make sure you refer to the start guide for any specific tools needed, such as a screwdriver or drill for mounting brackets, or zip ties for organizing multiple cords.
When the POS system is in its final location and fully assembled, you’ll need to connect it to your power supply, configure it, and then connect it to other POS devices.
Once you’ve fully assembled the cash register, carefully to the power outlet, without any trailing wires. Your cash register might have a battery too, which will provide backup energy in case there’s a power outage. You’ll be able to keep taking payments while the battery has charge, which is also true if your cash register comes with a portable card reader.
Next, it’s time for configuring the cash register. The actual configuration meaning is setting the date and time, adding your inventory and pricing, and specifying which items include sales tax and which don’t. Once you configure these details, your POS may help your business save time and energy by automatically tracking inventory and calculating totals and tax.
You should be able to access this from your laptop or mobile because your data is stored in the cloud.
If you’re asking what is a data cloud and how does it relate to a POS system, think of it as the centralized hub for your POS system’s data that operates over the internet, instead of storing and processing the data on a physical hard drive. This means you can access your cash register’s information (including customer data) anywhere you have an internet connection and typically from multiple devices.
Not all cash registers rely on cloud-based technology though, with some relying on a physical computer, local software, or in-store server instead.
Your cash register works with all kinds of other devices, from card readers and barcode scanners to cash drawers and receipt printers. If this is an option for your cash register, then you can sync them remotely with Bluetooth technology or manually connect it with a USB cable The last step is connecting everything you need and make sure they’re all working together.
If you’re working a cash register for the first time, the good news is modern cash registers and POS systems are designed to be simple and easy to use.
A quick POS training session will be enough to teach you and your team how to make a sale by using the cash register, taking payments, issuing refunds, adding discounts, and more. Before you open for business, or a team member starts their shift, they should turn the register on, log in with their employee ID and PIN (if required), and check everything’s working well. The cash drawer should open and close effectively and the receipt printer should contain paper.
One of the most critical steps is learning how to use a cash register to make a sale. Depending on the cash register settings, the staff might need to log in every time they need to make a sale. Alternatively, the POS could be automatically logged in.
The second step is selecting the items the customer wants to buy. This may include scanning the item with the barcode scanner, selecting an option on the screen, or manually entering the item information. The POS will add up the total for you and add any relevant taxes.
Next, ask the customer how they would like to pay. If they choose cash, the register can automatically calculate the change, and the cash drawer will open so cash can be safely stored and accessed.
If the customer wants to pay by card, the synced card reader will fire into action and be ready to take either a contactless payment, a chip and pin payment, or a chip and sign payment. Customers can add a tip here too(if applicable) by following the instructions on the screen. When the payment is complete, the customer can get a receipt if they need one. While a printed receipt is a typical option, your POS system may allow other receipt types, such as email and/or SMS.
It’s important to know how to void a transaction in case an order is canceled, duplicated, or a customer asks for a refund. Each POS will work slightly differently, but there should be a button that says ‘VOID’ or ‘CANCEL’. Press this to cancel a transaction and remove it from your POS.
If you’re giving a cash refund, choose this option on the screen, enter the pricing information, and the cash drawer will kick open so you can give the customer their money back. Keep in mind some cash registers require manager access only and a card refund will usually be given through the card machine. Choose the option on screen, enter the amount of the refund, and the customer can use their card as normal to receive the refund.
Your cash register will automatically calculate discounts when they need to be applied. This could be a percentage or a specific amount.
It’s up to you as the merchant whether you make this function available to all staff, or if each discount requires manager approval. You can also specify why the discount was applied, which is essential for your own record keeping. When a discount is added, the customer will be prompted to pay the reduced amount.
Like all technology, cash registers can go wrong. Regular maintenance can make the need for cash register troubleshooting less likely, while keeping your POS running smoothly.
You can keep the cash register clean by gently using a soft, lint-free cloth for dusting and wiping down, plus a compressed air can for removing debris from the buttons. If you have a touchscreen display, keep it clean by wiping it down daily with antibacterial spray. This is essential especially if there are lots of people touching it every day.
Dust, old receipts, and even dollar bills can jam your cash drawer too. Keep it clean with regular dusting, check everything is in the correct place, and don’t let the cash register get too full. This can make it hard for the drawer to close and may cause damage.
Just like any other electrical equipment, check the wires aren’t worn or unsafe, and that the power outlet is undamaged.
Each employee should know how to use a cash register, including how to change receipt paper, since it can run out at any time during a transaction. Your card reader and receipt printer contain a paper roll which prints the receipts. You’ll know when the receipt paper roll runs out because it’ll stop printing and alert you.
Open them up, unwrap a new roll, remove the empty cardboard roll, and insert the new roll. Next, pull a section of the roll out of the machine through the serrated slot, close the flap, and print a test receipt to check it’s working. If nothing prints, you might need to turn the roll around so it can print on the other side of the paper.
If the cash register isn’t working, then consider the most common cash register errors first. This includes cloud sync errors, information not being displayed properly, connected devices failing, and the cash drawer not opening. If all your cash register troubleshooting comes to nothing, calling POS tech support can help you get things working again.
Contact the company that makes and maintains your cash register, tell them what the issue is, and they’ll likely be able to help. They may even access your POS remotely (with your permission, of course) to troubleshoot for you.
Troubleshooting during a busy shift is no fun, so it’s important you identify issues out of hours, if possible. This should help you avoid that awful moment when the POS goes down and you have a line of customers standing in front of you.
Outages are sometimes unavoidable, however. If you can’t fix the issue immediately and need to get on with your day, remember that some of the individual components connected to your cash register can work independently. For example, the card terminal may still be able to take card and contactless payments, but it may not sync up to your POS.
Traditional cash registers and modern POS systems serve the same purpose of processing sales transactions and managing cash. But they differ significantly in features and capabilities.
Traditional registers are basic, offering transaction processing and cash storage. They generally lack advanced features such as inventory management and integration with other business systems.
In contrast, modern POS systems deliver a wide range of functionality beyond transaction processing. They include features like inventory tracking, customer relationship management, employee management, sales reporting, and integration with accounting and e-commerce systems. POS systems serve as all-in-one payments solutions, helping businesses manage various aspects of their operations effectively.
While traditional cash registers may suffice for very small businesses with limited growth potential, POS systems are scalable and adaptable to businesses of various sizes, providing room for expansion.
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The ultimate goal of any POS system is creating a seamless, frictionless payment experience for the customer. No matter how many crucial tasks the POS system performs, one of the first steps is knowing how to use a cash register system and configuring it so it supports your business to the fullest.
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