Many companies use electronic cash registers to record and process sales transactions. Your company can usually use a cash register for at least a decade before you need a new one depending on the quality of the model you select.
While there are pros and cons to using electronic cash registers, a small business will find that even a very affordable model is equipped to meet its basic needs.
Buying an Electronic Cash Register
For small businesses just starting out, buying a traditional electronic cash register is often a more affordable investment than a complete retail POS system. You can always upgrade to more superior equipment later as your business increases in size even if you start out with a low-cost model.
Make sure the register has the memory capacity to meet your business needs if you are buying one for the first time. Higher-end models of cash registers that come with advanced features have functions that allow for more complex record-keeping and storing more data.
Lower Checkout Time and other Pros of Electronic Cash Registers
Electronic registers offer benefits like lower checkout time, tracking customer transactions, and many more. Most models are user-friendly and provide accurate record keeping. Basic models include the printer, keyboard, and display. Even cheap cash registers include functions to calculate change, record sales, provide price look-ups, calculate tax, and print customer receipts.
Usually, these registers come with software included in the basic cost that allows you to run reports, charge the correct sales tax, and identify sales by employee. More advanced registers often require you to buy a separate software program depending on your business type of records.
Security
This is definitely another advantage. The cash drawer on an electronic register locks automatically and only authorized users who have a password can log in and open it. Electronic cash registers offer a high degree of security, being big enough to prevent easy theft.
They are equipped with robust locking mechanisms for cash drawers. Mechanical registers do not have any protection mechanisms except for a key lock. There’s no need to transmit private customer data online or electronically as with web-based payment methods because electronic registers process cash transactions locally as well.
Ease of Use
Sellers often face the challenge of collecting and storing cash from buyers. Most retail stores use electronic cash registers; a basic method of collecting payment from their customers. These highly common, user-friendly devices perform the necessary arithmetic and provide a secure place to store checks and cash. Of course, they are not the only option.
Accuracy
High accuracy is among the major advantages of electronic cash registers. The internal computer system enters every transaction, making it simple for managers to compare sales numbers with the cash in the drawer at the end of the day and identify discrepancies.
Electronic cash registers give sales staff the advantage of knowing exactly how much to charge clients and how much change to return after the payment. They are equipped with tools for voiding transactions as well as features for applying discounts and promotions, all of which help the user provide accurate, quick, reliable customer service.
Electronic cash registers are available in a number of makes and models. This allows businesses to choose the best option to fit their specific needs and requirements. A business can also purchase an electronic register under a specific brand on the market. For example, you can choose a sharp electronic cash register that can ensure maximum ROI or a more basic model.
Memory Capacity
Another advantage of a cash register is high memory capacity, the importance of which is undeniable. Always look for a device with the highest possible memory capacity.
Affordable
The cost is arguably one of the most important issues for all business owners, particularly small business owners. Some companies’ price structures are confusing. There are usually hidden fees and charges the company doesn’t learn about until much later.
While electronic cash registers are generally quite affordable, you should still check for costs in advance, in particular, integration fees, support fees, set up fees, hardware fees, and add-on fees.
Electronic registers make it possible to be updated on your employee’s or coworkers’ work, share information, and access detailed overviews of how the store is doing. This will give you peace of mind knowing you’re being productive and making a profit.
Electronic Cash Register vs. POS System
When considering whether to purchase a POS system or electronic cash register, there are a few things to consider. Here is a list of benefits and drawbacks for comparison.
Electronic Cash Register
PROS:
- Easy to use
- They are very low cost
- You can find them locally
- Simple set up
CONS:
- Programming guides are sometimes complicated
- Not always durable and often cheap
- No inventory management
- No purchase order creation
- No support for physical inventory counts
- No detailed reporting
- No menu items (for restaurants)
- No customer tracking
- No table seating arrangement (for restaurants)
- No employee time clock
- No gift card capabilities
- Not designed for take-out (for restaurants)
- Not designed for integrated credit card transactions (have to use separate terminal)
- Not designed for delivery transactions (for restaurants)
- Cannot save or transfer sales data
- Cannot customize receipts
- Cannot support multiple tax codes
- Cannot connect to peripheral devices most of the time (example: barcode scanner)
Point Of Sale System
PROS:
- User-friendly
- Equipment comes with a manufacturer warranty
- Set up and installation is usually straight forward, often already done by vendor (POSGuys.com)
- The software can be uninstalled and switched to a different software
- Suited for all types of businesses, retail, restaurant, hospitality, healthcare/spa services, etc.
- Easy database backups and file transfers
- Track Sales
- Most software has full inventory management capabilities
- Diverse reporting features
- Fast transactions
- You can upgrade to a better computer or software at any time
- Integrated credit card processing
- Compatible with handheld scanners, printers, scales, fingerprint scanners, etc.
CONS:
- Computer, Monitor, Printer, and cash drawer are usually not integrated as one unit
- Investment is often more than an electronic cash register
- Separate equipment requires more counter space
