POS Software: Everything you need to know.

Running a successful business involves more than just selling products or services—it’s about creating seamless experiences for your customers while keeping your operations efficient. At the heart of these efforts lies a powerful tool that many businesses rely on every day: Point-of-Sale (POS) software. Whether you’re a small business owner just starting out or a seasoned entrepreneur looking to upgrade your systems, understanding POS software is essential for optimizing your sales process and growing your business.

In this guide, we’ll break down everything you need to know about POS software, from its features and benefits to tips on choosing the right system for your needs. By the end, you’ll not only understand how POS software works but also how it can transform the way you run your business, no matter your industry or size. Let’s dive in!

What is point-of-sale software?

Point-of-sale (POS) software is like the brain behind your checkout process. It’s what powers a transaction when a customer pays for something, whether they're tapping their card, swiping, or even paying online.

Think of it as a combination of a cash register and a command center. Sure, it allows your business to accept payments, but it can also track sales, manage inventory, and keep tabs on your customers.

Say you own a small coffee shop. Your POS software doesn't just ring up lattes and croissants; it can tell you which pastry is the most popular, how much milk to order next week, and even send a thank-you note to your regulars.

It’s not just for retail, either. Dentists, beauty salons, and even mobile businesses like plumbers use POS software to keep things running smoothly.

In short, POS software is about more than just payments. It’s a tool to help you run your business smarter.

What are different types of POS software?

POS software comes in many forms to suit different business needs. Here’s a detailed look at the main types:

Offline POS software

Works without an internet connection, making it reliable even during outages. This is especially helpful for rural businesses, such as a small-town hardware store, where internet connectivity can be spotty. Offline systems store transaction data locally and sync it with the cloud once the connection is restored, ensuring nothing gets lost. It’s a good fallback option for other POS systems as well.

Online POS software

This style of POS is fully cloud-based, meaning you can access it from anywhere with an internet connection or data connectivity. This setup is ideal for businesses with multiple locations, like a chain of gyms or boutiques, as it lets you track sales across all locations in real time. Even if you mostly use offline POS software, online systems can complement it by enabling better data backups and remote management.

Laptop POS software

Designed to run on laptops, this is a practical option for businesses with a stationary checkout setup, like a bookstore or a small café. The larger screen and keyboard make it easier to manage detailed tasks such as inventory updates or running sales reports. Laptop POS systems can also connect with barcode scanners and receipt printers to offer a traditional checkout experience.

iPad POS software

Optimized for iPads, iPad POS systems combine portability with user-friendly interfaces. They’re often seen in restaurants, where servers take orders directly at the table, or in trendy retail boutiques that value a sleek, modern checkout process. Because they’re lightweight, you can easily move them around the store or use them at pop-up events.

Mobile POS software

Runs on smartphones and is perfect for businesses on the go, like food trucks, craft vendors at markets, or delivery-based services. For instance, a dog groomer visiting homes could use a mobile POS to accept payments immediately after finishing a service. Mobile systems often connect seamlessly with online POS platforms, letting you track payments and sales data in one place.

Each type of POS software can connect and work together. For example, a business might use iPad POS software in its physical store, mobile POS for outdoor events, and online POS for managing sales and inventory across both channels. Choosing the right mix ensures your operations stay smooth no matter where or how you sell.

POS software vs. POS system vs. POS terminal

When people talk about POS, they often use the terms "software," "system," and "terminal" interchangeably. While they are related, these terms represent distinct components of a business's payment process. Let’s break them down.

POS Software

POS software is the program that powers your checkout operations. It manages payments, tracks inventory, and stores customer data. For example, a law firm might use POS software to process client invoices, track billable hours, and manage payments securely. This software serves as the digital backbone, ensuring efficient record-keeping and financial tracking.

POS System

A POS system refers to the entire setup, which includes both the software and the hardware. A veterinary clinic might have a POS system comprising desktop software, a receipt printer, and a cash drawer to handle in-person payments. This integrated system ensures that every aspect of payment processing is streamlined and connected to client management tools.

POS Terminal

A POS terminal is the physical device where payments are completed. This could be a standalone smart terminal, a card reader attached to a smartphone, or a contactless payment setup. For instance, a dentist office may use a POS terminal at the reception desk to process co-payments or remaining charges, providing patients with a quick and seamless checkout experience.

Though they serve different roles, these components work together to create a cohesive payment solution. For example, an electrician might use mobile POS terminals to accept payments on-site while their office staff uses a centralized POS system to manage invoices and inventory. Understanding the distinctions between these elements helps businesses choose the right tools to support their operations effectively.

What is point-of-sale software used for?

Point-of-sale software is essential for much more than just processing payments. At its core, it ensures that transactions run smoothly, whether customers are paying with cash, cards, or digital wallets. But a POS system's capabilities goes beyond accepting payments. For example, point-of-sale software can be a powerful tool for inventory management. It helps businesses track stock levels, ensuring they never run out of essential items.

Another key use of POS software is customer relationship management. It stores valuable information about customer preferences, purchase histories, and contact details, enabling businesses to deliver personalized service. A boutique spa might use this data to offer tailored promotions or loyalty rewards to frequent clients, strengthening customer relationships to help grow the business.

POS software can also provide detailed reporting and analytics. By analyzing sales trends and performance metrics, businesses gain insights to make informed decisions. A law firm could use the data to identify which services are most profitable to market or optimize billing cycles for better cash flow.

In essence, POS software acts as a central hub for streamlining operations, improving customer experiences, and offering actionable insights, making it an indispensable tool for modern businesses. Next will explore some tips on how to choose the best POS for your business.

How to choose a POS software for small businesses?

When choosing the right POS software for a small business we suggest evaluating several key factors to ensure the solution fits your needs and budget.

1. Low payment processing fees

If you're looking for a POS software you're essentially looking for a payment processor. Understanding payment processing fees and how they are structured is the first thing to consider when selecting which software is best for you. Some providers charge a flat rate, while others offer Interchange Plus pricing, which is often more transparent and cost-effective. For instance, Helcim’s Interchange Plus model ensures businesses pay the true cost of each transaction plus a small margin, avoiding the hidden fees that other processors frequently surprise small business owners with.

2. Included paymen tools

Look for POS software that comes with built-in tools that suit your business needs. Features like Tap-to-Pay on iPhone, invoicing, virtual terminals, and recurring payment options can be incredibly useful for small businesses. An added bonus is a payment provider that provides these tools for free so you can grow your business without the headache of adding additional vendors to your payment solution.

3. No contracts

Many processors require long-term contracts to access their software, but this can limit flexibility and lock businesses into unfavorable terms. Opt for a provider that doesn’t enforce contracts, allowing you to switch if your needs change. Helcim, for instance, offers its services without binding contracts, empowering businesses to choose and stay based on satisfaction rather than obligation. Keep in mind that to use POS software, you’ll likely need a merchant account, so prioritize providers that offer straightforward account setup without excessive commitments.

Break up with bad rates.

Feeling stuck with your provider? We'll waive $500 of your processing fees when you switch to Helcim.

Learn more

By focusing on these factors, small businesses can select a POS software that aligns with their goals, scales with their growth, and provides the tools they need to succeed.

How much does a POS software cost?

The cost of POS software varies depending on the payment provider you select. Some processors charge monthly or set up fees to access their POS software. Basic plans, often suitable for small businesses or startups, might cost as little as $30 per month, offering core features like payment processing and basic reporting.

Mid-tier plans range from $100 to $300 per month, providing additional tools like inventory tracking, customer management, and integrations with accounting software. These options are often appealing to growing businesses, such as boutique owners or service providers, looking to streamline operations without overcomplicating their workflows.

Enterprise-level POS software, tailored to larger organizations or those with complex needs, can cost $500 or more per month. These advanced systems often include custom integrations, comprehensive reporting, and dedicated support. A healthcare clinic or multi-location business might invest at this level to manage high volumes of transactions and detailed records across locations.

There are also providers, such as Helcim, that don’t charge for POS software. Helcim merchants only pay for what you process, making pricing transparent and access to tools very scalable. The only added cost to Helcim merchants is the cost for accompanying POS terminals which allows businesses to accept credit cards in person. Helcim continues to stand out by providing affordable, flexible hardware options alongside its POS solutions, ensuring businesses can choose the tools they need without unnecessary financial strain.

How to install point-of-sale software?

Installing POS software can vary depending on the device you’re using, but the process is generally straightforward. Here’s how to get started:

Installing on Your Laptop

To install POS software on your laptop, you’ll typically begin by downloading the software from the provider’s website or an app marketplace. Once the file is downloaded, follow the installation instructions, which often include creating an account and linking your merchant account to the software. After installation, you can customize settings like adding your product catalog or connecting peripherals such as receipt printers and barcode scanners. For example, Helcim’s POS software offers an easy-to-use dashboard that simplifies setup, allowing businesses to be operational within minutes.

Installing on Your Phone

For mobile POS software, installation is even simpler. Visit your device’s app store (Google Play or Apple App Store) and search for the software by name. Download and install the app, then log in using your account credentials. Mobile POS apps like Helcim’s are designed to be intuitive, so you can quickly connect to card readers or other hardware and start accepting payments. This setup is ideal for businesses on the go, such as food trucks or service professionals working on-site.

Regardless of the device, it’s important to ensure your software is compatible with your hardware and meets your business requirements. Once you've installed the app, explore the settings to tailor the software to your needs, from configuring taxes to customizing your receipts. With a bit of preparation, you can have your POS software up and running smoothly in no time.

How to use POS software?

Using POS software effectively starts with understanding its core functions and features. Once your software is set up, you can begin to explore its capabilities to streamline your business operations.

1. Setting up your POS software

The first step is to configure the software to suit your business needs. This includes inputting your product or service catalog, setting up pricing, and linking any hardware such as card readers, printers, or terminals. If you’re using Helcim’s POS software, the setup process is designed to be intuitive, with tools like product uploads and hardware integration streamlined for ease of use.

2. Processing transactions

At its core, POS software is built for accepting payments. Depending on your business type, this could mean accepting credit cards, tap payments, or even ACH transfers. Helcim’s system supports various payment methods, giving you flexibility at checkout. Simply select the product or service, input the total, and let the customer choose their preferred payment method.

3. Managing inventory

For businesses with physical products, tracking inventory is a key function. As items are sold, the POS system automatically adjusts stock levels, ensuring you always know what’s available. This feature helps avoid overstocking or running out of popular items, saving you time and money.

4. Engaging with customers

Modern POS software allows you to store customer details, purchase histories, and preferences. This data can be used to enhance customer relationships through personalized offers or loyalty programs. With Helcim, for example, you can easily manage customer profiles and track recurring payments to build long-term loyalty and increase ease.

5. Generating reports

POS software simplifies business analytics by generating reports on sales, customer trends, and inventory. These insights help you make informed decisions about staffing, inventory purchases, or promotional strategies. Regularly reviewing your data ensures you’re always improving your operations.

6. Ongoing maintenance and updates

To keep your POS software running smoothly, it’s important to stay up to date with system updates and new features. Providers like Helcim often release automatic improvements that enhance functionality, security, or compliance. Keeping your software current ensures you’re always operating at peak efficiency.

In summary, using POS software is about more than just processing payments. From setup to analytics, the right system helps you streamline operations, engage customers, and grow your business. By leveraging all its features, you can maximize its value and make your business run smarter.

How to get a free POS software?

Finding free POS software doesn’t have to mean sacrificing quality or essential features. Many providers, including Helcim, offer solutions that allow businesses to start using POS software without paying steep upfront costs or hidden fees.

Helcim’s POS software is included as part of its merchant services, which means you get access to professional-grade tools like invoicing, inventory management, and a virtual terminal without a monthly charge. This is a huge benefit for small businesses looking to keep costs down while still using a robust system to streamline operations.

If you’re currently locked into a contract with another provider, don’t worry. Helcim offers a Merchant Buyout Program, designed to help businesses switch and limit financial penalties. This program allows you to move to Helcim’s transparent, no-contract model while taking advantage of its easy-to-use POS software and cost-saving Interchange Plus pricing.

Break up with bad rates.

Feeling stuck with your provider? We'll waive $500 of your processing fees when you switch to Helcim.

Learn more

Getting started with Helcim is as simple as signing up for a free account, and then following the easy setup process to begin accepting payments in no time. With Helcim, free doesn’t mean limited—it means empowering your business with all the tools you need to succeed, without unnecessary commitments or hidden costs.

FAQs

1. Is there a free POS software?

Yes, some providers offer free POS software. Depending on who you choose, free access may be limited to certain tools; however, with Helcim’s POS software all tools are available at no additional cost, offering tools like invoicing, inventory management, and payment processing without hidden fees or subscription charges. With Helcim you only pay when you process, not for access.

2. Does a POS software work without the Internet?

Yes, offline POS software can operate without an internet connection. It stores transaction data locally and syncs it to the cloud when connectivity is restored. This is ideal for businesses in areas with unreliable internet or for those who want a backup during outages.

3. How to make point of sale software work for your business?

To get started, sign up for a merchant account with a provider like Helcim. Add your inventory to the POS system, customize your settings, and download the app or software to your preferred device. From there, all operations—such as accepting payments, managing inventory, and generating reports—are handled through the POS interface.

4. How do I integrate my accounting software with my POS software?

Most modern POS systems offer integration options for popular accounting software such as QuickBooks or Xero. Helcim’s POS software, for example, includes integration tools that allow sales and payment data to sync automatically with your accounting system, streamlining bookkeeping and ensuring accuracy.

5. What is the difference between POS software and a payment gateway?

POS software is a comprehensive tool used for managing sales, inventory, customer data, and transactions within your business. A payment gateway, on the other hand, is a technology that authorizes and processes online payments, acting as a bridge between your POS system and the payment processor. Helcim’s POS software includes payment gateway functionality, combining these features into one seamless system for both in-person and online transactions.