Point Sale System

What is a Point of Sale System
Point of sale (POS) system is the spot where your customer makes the payment for goods or
services that are offered by your company.
Point of sale systems are systems that enable the business transaction between the client and the
company to be completed. POS system is a computerized network that consists of the main computer
linked with several checkout terminals and supported by different hardware features starting from
barcode scanners and ending with card payment terminals.
As businesses have different profiles they need various point of sale systems as well. For example,
restaurants, retail businesses, and grocery stores all have their specialties and that is why they need
a (Links to an external site.)POS system that meets their specific needs.
A food store requires a scale at the point of sale and a cafe needs to have an opportunity to
customize menus in case of special offers.
But in general, there are two primary types of businesses that need the point of sales system. These
are retail companies and hospitality businesses such as restaurants and hotels. That also means that
there are mainly two suitable POS systems one for retail and the other for restaurant businesses.

Why Is POS System Useful?

Using the POS system can have a positive effect on your business.
It allows you to have better control over your business operations. With a POS system, you know
exactly which products you have sold on daily or monthly bases, how many products are in the
warehouse or how much money you have made.
It allows doing better analytical thinking and planning.
For example, POS system makes it easier to keep track of your inventory, to notice and analyze
movements and tendencies in sales processes, to analyze your sales reports and other data in order
to predict more precisely future trend and your company’s requirements.
It allows you to increase your business efficiency.
POS system makes the managing of your company’s paperwork more time-saving. Managing bills
and orders, sales figures or reports is made very convenient. Besides the office environment POS
system also increases the efficiency of the everyday sales environment thanks to different POS
features such as barcode scanners or credit card terminals.
It allows you to make personal client communication more efficient.
As a POS system makes it very easy to gather the contact details of your best clients at the same
time they complete their purchase. This information is valuable for generating personal offers and
developing personal client communication.
Thereby with a POS system, you can save money and boost your profits and in addition, the POS
system helps you to make more informed business decisions.
Why Is POS System Useful?

Using the POS system can have a positive effect on your business.
It allows you to have better control over your business operations. With a POS system, you know
exactly which products you have sold on daily or monthly bases, how many products are in the
warehouse or how much money you have made.
It allows doing better analytical thinking and planning.
For example, POS system makes it easier to keep track of your inventory, to notice and analyze
movements and tendencies in sales processes, to analyze your sales reports and other data in order
to predict more precisely future trend and your company’s requirements.
It allows you to increase your business efficiency.
POS system makes the managing of your company’s paperwork more time-saving. Managing bills
and orders, sales figures or reports is made very convenient. Besides the office environment POS
system also increases the efficiency of the everyday sales environment thanks to different POS
features such as barcode scanners or credit card terminals.
It allows you to make personal client communication more efficient.
As a POS system makes it very easy to gather the contact details of your best clients at the same
time they complete their purchase. This information is valuable for generating personal offers and
developing personal client communication.
Thereby with a POS system, you can save money and boost your profits and in addition, the POS
system helps you to make more informed business decisions.
Elements of the POS System

First of all, you need to think about system computers because a computer is an essential part of a
POS system. You need a computer to run the POS software. It is possible to buy a POS system
together with computers, but you can buy computers separately. It is also important to keep in mind
that POS computers should only be used for POS.
Then as mentioned you have to choose suitable software for your business needs. As there are many
different point of sale solutions there are also different software. But in general POS software
packages contain features and functionality that will help you to manage easily all common customer
related transactions that are needed in your business.
The development of cloud technology has also lead to cloud-based POS systems.
These systems can be accessed directly from the Internet and they use data for operating that is
stored on a remote server.
Cloud-based POS systems are also created to be compatible with a wide range of POS hardware.
Cloud-based POS also helps to expand POS systems in addition to computers to mobile and tablet
devices. For example, a cloud-based POS system that runs on iOS-based devices can also be used
on an iPad based POS system.
And thirdly, you need POS system hardware (Links to an external site.).
System hardware consists of different equipment, such as a cash drawer, barcode scanners, monitor,
receipt printer, etc. You also need touch screens, programmable keyboards, scanners, and handheld
terminals to be able to enter necessary data into the POS system.

Data Management
Data management (Links to an external site.) is an administrative process that includes acquiring,
validating, storing, protecting, and processing required data to ensure the accessibility, reliability, and
timeliness of the data for its users. Organizations and enterprises are making use of Big Data more
than ever before to inform business decisions and gain deep insights into customer behavior, trends,
and opportunities for creating extraordinary customer experiences.
To make sense of the vast quantities of data that enterprises are gathering, analyzing, and storing
today, companies turn to data management solutions and platforms. Data management solutions
make processing, validation, and other essential functions simpler and less time-intensive.
Leading data management platforms allow enterprises to leverage Big Data from all data sources, in
real-time, to allow for more effective engagement with customers, and for increased customer lifetime
value (CLV). Data management software is essential, as we are creating and consuming data at
unprecedented rates. Top data management platforms give enterprises and organizations a 360-
degree view of their customers and the complete visibility needed to gain deep, critical insights into
consumer behavior that give brands a competitive edge.
Data Management Challenges
While some companies are good at collecting data (Links to an external site.), they are not managing
it well enough to make sense of it. Simply collecting data is not enough; enterprises and organizations
need to understand from the start that data management and data analytics (Links to an external
site.) only will be successful when they first put some thought into how they will gain value from their
raw data. They can then move beyond raw data collection with efficient systems for processing,
storing, and validating data, as well as effective analysis strategies.
Another challenge of data management occurs when companies categorize data and organize it
without first considering the answers they hope to glean from the data. Each step of data collection
and management must lead toward acquiring the right data and analyzing it in order to get the
actionable intelligence necessary for making truly data-driven business decisions.
Data Management Best Practices
The best way to manage data, and eventually get the insights needed to make data-driven decisions,
is to begin with a business question and acquire the data that is needed to answer that question.
Companies must collect vast amounts of information from various sources and then utilize best
practices while going through the process of storing and managing the data, cleaning and mining the
data, and then analyzing and visualizing the data in order to inform their business decisions.
It’s important to keep in mind that data management best practices result in better analytics. By
correctly managing and preparing the data for analytics, companies optimize their Big Data. A few
data management best practices (Links to an external site.) organizations and enterprises should
strive to achieve include:
 Simplify access to traditional and emerging data

 Scrub data to infuse quality into existing business processes
 Shape data using flexible manipulation techniques
It is with the help of data management platforms that organizations have the ability to gather, sort,
and house their information and then repackage it in visualized ways that are useful to marketers.
Top performing data management platforms are capable of managing all of the data from all data
sources in a central location, giving marketers and executives the most accurate business and
customer information available.
What you mean by data mining

In simple words, data mining is defined as a process used to extract usable data from a larger set of
any raw data. It implies analysing data patterns in large batches of data using one or more software.
Data mining has applications in multiple fields, like science and research. As an application of data
mining, businesses can learn more about their customers and develop more effective strategies
related to various business functions and in turn leverage resources in a more optimal and insightful
manner. This helps businesses be closer to their objective and make better decisions. Data mining
involves effective data collection and warehousing as well as computer processing. For segmenting
the data and evaluating the probability of future events, data mining uses sophisticated mathematical
algorithms. Data mining is also known as Knowledge Discovery in Data (KDD).
Key features of data mining:
• Automatic pattern predictions based on trend and behaviour analysis.
• Prediction based on likely outcomes.
• Creation of decision-oriented information.
• Focus on large data sets and databases for analysis.
• Clustering based on finding and visually documented groups of facts not previously known.
The Data Mining Process: Technological Infrastructure Required: 1. Database Size: For creating a
more powerful system more data is required to processed and maintained. 2. Query complexity: For
querying or processing more complex queries and the greater the number of queries, the more
powerful system is required. Uses: 1. Data mining techniques are useful in many research projects,
including mathematics, cybernetics, genetics and marketing. 2. With data mining, a retailer could
manage and use point-of-sale records of customer purchases to send targeted promotions based on
an individual’s purchase history. The retailer could also develop products and promotions to appeal to
specific customer segments based on mining demographic data from comment or warranty cards.
What is data mining used for
Data mining (Links to an external site.) involves exploring and analyzing large blocks of information to
glean meaningful patterns and trends. It can be used in a variety of ways, such as database
marketing, credit risk management, fraud detection (Links to an external site.), spam Email filtering, or
even to discern the sentiment or opinion of users.
The data mining process breaks down into five steps. First, organizations collect data and load it into
their data warehouses. Next, they store and manage the data, either on in-house servers or the
cloud. Business analysts, management teams and information technology professionals access the
data and determine how they want to organize it. Then, application software sorts the data based on
the user's results, and finally, the end-user presents the data in an easy-to-share format, such as a
graph or table.
Example of Data Mining

Grocery stores are well-known users of data mining techniques. Many supermarkets offer free loyalty
cards (Links to an external site.) to customers that give them access to reduced prices not available
to non-members. The cards make it easy for stores to track who is buying what, when they are buying
it and at what price. After analyzing the data, stores can then use this data to offer customers
coupons targeted to their buying habits and decide when to put items on sale or when to sell them at
full price.
Data mining can be a cause for concern when a company uses only selected information, which is
not representative of the overall sample group, to prove a certain hypothesis.
LESSON 1
Introducing QuickBooks
 Using forms
 You record most of your daily business transactions on a QuickBooks form, which looks
just like a paper form.
 Using lists
 The list is another basic feature. You fill out most QuickBooks forms by selecting entries
from a list.
 Using registers
 Registers contain a record of all the activity in one account.
Getting Around in QuickBooks
 Manage your open windows
 QuickBooks displays one window at a time.
 Using the menu bar
 You can find all commands on the menu bar.
 Using the icon bar
 The icon bar allows you to manage your business more quickly.
 Using the navigation bar
 The navigation bar provides quick access to the Centers and onscreen Help.
 Making the Home page your starting point
 The Home page provides a graphical representation of the workflow, organized in
logical groups.
 The QuickBooks Coach can guide you through the workflows on the Home page.
About the chart of accounts
 Chart of accounts
 The chart of accounts is a complete list of your business’ accounts and their balances.
 When you keep books for a company, you want to track:
 Where your income comes from
 Where you put it
 What your expenses are for
 And what you use to pay them
 You track this flow of money through the chart of accounts
About assets, liabilities, and equity
 Assets
 Includes what you have and what people owe you.
 Liabilities
 What your company owes to other people.
 Equity
 Equity is the difference between what you have and what you owe.
 Equity = Assets – Liabilities
Cash versus accrual bookkeeping
 Cash basis
 Income is recorded when money from sales is received and expenses when bills are
paid.
 Accrual basis
 Income is recorded at the time of the sale and expenses when you receive the bill.
Measuring business profitability
 The balance sheet
 A snapshot of your company on one date. It shows:
 What you have (assets)
 What people owe you (accounts receivable)
 What your business owes (liabilities and accounts payable)
 The net worth of your business (equity)
 The profit and loss statement (income statement)
 A profit and loss statement or income statement shows income, expenses, and net
profit or loss
 Statement of cash flows
 Shows receipts and payments during a specific accounting period
General journal transactions
 Traditional accounting method
 Total amount in the Debit column equals the total amount in the Credit column
 Each amount is assigned to an account in the chart of accounts
 To view the journal entry for a transaction, select the transaction and press Ctrl-Y.
 Modify the report and choose to display the Credit and Debit columns if they do not
appear in the report.
In QuickBooks, an item is anything that your company buys, sells, or resells in the course of
business, such as products, shipping and handling charges, discounts, and sales tax (if applicable).
You can think of an item as something that shows up as a line on an invoice or other sales form.

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What are the main components of a POS system?

What are the main benefits of using a POS system for businesses?

What is a Point of Sale System

Why Is POS System Useful?

Why Is POS System Useful?

Elements of the POS System

 Simplify access to traditional and emerging data

What you mean by data mining

Example of Data Mining

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