Buying a POS system is just the first step. To maximize your investment, you need to get it properly installed, configured, and tested before going live. This guide also walks you through how to use a POS system for daily operations. If you are a reseller, showing your knowledge on how to use your product will help convince your clients to close the deal.
Step 1: Setting Up Your POS System for First Use
This step includes installation, account setup, and configuration.
Installation
For large businesses, POS systems are professionally installed, as it involves complex networking of multiple stations. However, if you only need one checkout counter, self-installing a POS system is fairly easy. It also saves you money since professional installation can be quite expensive and is often an additional cost on top of the unit itself.
All you need to do is follow the manual that comes with the packaging, which just generally describes how to set up the hardware on your countertop and properly plug the cord into a power outlet. It will also show you how to turn on the system and how to properly connect your pos system hardware peripherals (such as scanners, printers, and scales).
Once it’s up and running, the system will display a startup guide to help you connect it to your internet service.
Account Set Up and Configuration
Next, the system will prompt you to log in with your account. Now, some providers would ask you to set up an account on their website, which you can use to log into your POS system. If not, you can create an account right there. It will ask you to provide your business profile, as well as work on items such as:
- Tax settings
- Time zones
- Store hours
- Receipt and invoice template
- Reporting templates
- Password protection
- User profiles (if more than one person will access the system)
Caption: Set up your merchant account on the POS system (Image Source: BIMI Restaurant POS System)
Integrating Your Current Business Software
If you signed up for a POS system that allows you to connect your current business software, now is the time. Examples of these include accounting software, payroll (time-in/time-out) systems, customer relationship management (CRM) systems, kitchen display systems (KDS), and appointment calendars. While there are some variations, the process typically involves:
- Choosing your business software from the POS system list of integrations
- Click on the link to launch the business software
- Log in to your business software account
- Confirm the integration
If this is a two-way integration, your business software may require you to perform the same steps in reverse.
Adding Your POS System’s Business Management Software
For new or micro businesses that do not have their own set of business software yet, you likely subscribed to some of your POS system’s business management tools. These are features similar to some of the business software we mentioned earlier, but are built directly into the POS system. Here is how to activate these features:
- Click on the Add-on Features tab from your merchant dashboard menu
- If you have subscribed to a plan that includes this feature, the tools should be available
- If you are not subscribed, you’ll find a prompt to upgrade your plan or sign up for the feature as an add-on to your monthly fee.
- Confirm to activate the feature
Connect a credit card processor
A credit card processor is not just hardware for swiping or tapping your customer’s card to process payment. Before you can start accepting credit card payments, you will need a merchant account. This is different from the account you have with your POS software provider; some of the best POS providers can provide you with this merchant account as well.
The advantage of choosing a POS software + merchant account processor is that you don’t need to apply for a separate merchant account. Once your POS software provider approves your service, it already means you’re also approved to accept credit card payments. All you need to do is:
- Link a business bank account where proceeds of your sales can be deposited
- Connect and set up a credit card reader or terminal.
Note that software providers with their own merchant account service almost always provide you with their own credit card readers (some are even free or discounted).
| 💡 “What if I already have a merchant account processor?” If you already have a merchant account service provider, they are most likely able to integrate with your new setup. Make sure to inquire about this function before purchasing a POS system. |
Step 2: Uploading and Organizing Your Business Data
Once your setup is complete, it’s time to upload your business data, such as your inventory and employee lists. Here’s how to do it for your inventory:
- Check for the POS system’s supported file format.
- Navigate to the inventory management tab
- Choose the bulk update option and upload your inventory list file
- Once uploaded, review the inventory list on the POS system and correct any errors
- Enter your starting inventory levels
- Review your pricing and discounts
You should be able to follow similar steps for other business data sets. For example, with staff profiles, you can assign login IDs and role-based access.
Step 3: Performing Test Transactions Before Going Live
It’s important to perform test transactions before launching your new POS system. This will help you confirm that the sales process and record keeping work the way you expect them to.
First, run a test sale by adding one or more items to the cart. Adjust the quantities and proceed to checkout. Test all the payment methods you have enabled in the system and review how the receipt and the sales records turned out. Also, check if your inventory was adjusted automatically for the sales. If you have promotions and discounts, test them as well.
Next, run test refunds, voids, and returns. Choose an item from one of your test sales and start a test refund, test void, and then test returns. Observe if the process worked properly from the counter, then check if the necessary adjustments were made to your records. You should also perform test transactions for an entire receipt, not just one or two items.
| 💡 Pro Tip: Don’t forget to spend some time training your staff on the process if they are assigned to use the POS system. |
How to Process Sales Using Your POS System
To begin a sale, use your barcode scanner to scan the product code. If you are not using a barcode scanner, you can click on the search feature on your POS screen and enter the product’s SKU. From here:
- The system will pull up the product information
- Verify that the product and variant listed on the system are the same as the item in front of you
- Adjust the product quantity and check the price for any line item discount
Repeat these steps until all the items for checkout have been entered. The system will display the checkout screen with a list of the items, with the total cost and total number of items at the bottom. Check the number of items present at the counter to make sure they are accurate. Once done, advise the customer of the total amount and ask how they would like to pay.
Now, enter the payment information either by manually entering the tender amount or tapping, dipping, or swiping the customer’s card. When the system accepts the payment, the cash register will open, where you can:
- Place the cash and retrieve the necessary change, or
- Keep a copy of the credit card receipt with the transaction reference written on the back.
The POS system will then generate copies of the receipt, with the original provided to the customer.
Note that some advanced POS systems can have a modern interactive customer display. This is where customers can review their total purchase and choose their payment method themselves. You will only need to either receive the cash tender or direct them to where the card reader is set up.
Caption: Interactive customer display at checkout (Image Source: BIMI Retail POS System)
How to Manage Inventory, Cash, and Daily Operations
The advantage of using a POS system is its automation. This means most (if not all) of the record-keeping tasks are done automatically and in real-time. Therefore, your main task is to perform random system check-ups to make sure that everything is in working order.
Staff Management
If you have more than one employee taking on the cashier role, you can set your POS system to require a cashier’s ID before starting their shift. This step does two things:
- Logs the time an employee starts working, and
- Keeps a record of who operates the cash register for all transactions made
Once their shift is done, your cashier will be prompted to use their ID again to log off the system. You can also set a role-based access to the cash register. This means the system will recognize if a manager is using the POS and will allow them additional functions such as editing the pricing or removing items.
Cash Reconciliation
Your cashiers will have to reconcile their sales every time they log off from their shifts. They only need to navigate to the sales report function on the POS screen to view the records. From here, they can begin reconciling the total cash and card sales stored within the cash register. These are then taken from the register, placed inside a secure lock box, and handed off to the manager.
Once the cash register is closed, the register records are reset and ready for the next shift.
Inventory Count
A physical inventory count is a must-have in every business that maintains inventory. While it still requires an employee to be present, the POS system helps in automating some of the steps. Here’s how:
- Instead of a printed list, you can use a tablet with an inventory count template.
- Instead of manually counting and entering the numbers, you can use a barcode scanner to log and count the items.
Using a digital file will also help you in accurately analyzing your current inventory records against your inventory count.
How to Generate Sales and Operational Reports
Your POS system is designed to provide you with a range of business reports. Remember when you set up your reports template in Step 1? Once you had that set up, the system automatically began recording all transactions, and reports were generated and updated in real-time.
An overview of these should be available straight from your merchant dashboard. To go into the particulars, all you need to do is click on one of the reports on display. Depending on your software plan, your POS system can perform the following:
- Filter your view and reporting analysis based on your preferred date range
- View your sales by cashier, by counter, or by location
- Filter results based on customer or payment types.
- Combine two or more reports to create a comprehensive analysis
- Provide customer-based reports with detailed profiles
- Analyze staff performance
Best of all, these reports can be sent directly to your payroll, accounting, and marketing software.
POS System Common Issues and Troubleshooting Tips
It’s normal to encounter issues as you learn how to use a POS system. While you can check the product manual, below are the most frequent problems and how to fix them.
| Issue | Likely Cause | What to Check or Fix | When to Contact Support |
| Sales are not syncing |
|
| If sales remain missing after reconnecting |
| Inventory counts are incorrect |
|
| If discrepancies continue after adjustments |
| Card or digital payments are failing |
|
| If payments fail consistently or show error codes |
| The receipt printer is not printing |
|
| If the printer is recognized but still not responding |
| The cash drawer does not open |
|
| If the drawer fails after a hardware reset |
| Staff cannot access certain features |
|
| If permissions do not apply after saving |
| The POS system is running slowly |
|
| If performance issues persist after updates |
| Discounts or taxes are not applying correctly |
|
| If calculations remain incorrect after corrections |
| POS crashes or freezes during use |
|
| If crashes happen frequently or during transactions |
Getting The Most Out of Your POS System
A POS system is a major business investment and should be given enough time to prepare and learn. Learning how to use it will ensure that your business runs smoothly, and the system will efficiently support your growth goals.
Get your POS system from experts who can help. BIMI has 15 years of experience providing tailored POS system solutions for businesses of all sizes. Our in-house experts will help you with the best recommendations and after-sales support.
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Frequently Asked Questions (FAQs)
What is a POS system, and how does it work?
A POS system is a set of hardware and software that businesses primarily use to replace cash registers to ring in sales. It comes in different types that accommodate different business models and sizes.
What makes a POS system unique from an electronic cash register is its business management function. Aside from processing transactions, a POS system serves as an overall business management software that keeps an accurate record of all your business data in real-time. It also automates most of the manual repetitive tasks, so the records are more reliable.
What are the main components of a POS system?
A typical POS system comes with a complete set of hardware and software components. Hardware options include a terminal or countertop type register, tablet and tablet stand, barcode scanner, receipt printer, customer display, and payment card reader.
POS software primarily includes the checkout system, which cashiers use to process transactions. There are also core business management features such as inventory, CRM, staff monitoring, reporting, and user permissions.
What types of POS systems are available for businesses?
POS systems can be categorized in different ways. Do you know what the different types of POS systems are available for your business?
Legacy POS systems are those whose records are stored locally within the business premises. Modern-day POS systems are cloud-based, meaning data is stored in the cloud. This is an advantage, particularly for growing businesses with plans to scale their inventory and store locations.
Another way to categorize POS systems is based on business models. For example, a mobile POS system is ideal for small businesses and those that plan to sell on-the-go. An online POS system does not have a hardware component, but it can let you sell and accept payments online. A multichannel POS system lets you sell in-store, online, and on-the-go.
What are the benefits of a POS system?
If you are a POS system dealer, you should inform your customers about the benefits of the POS system.
1. Enhanced Efficiency & Speed: Reduced human error & Faster checkouts.
2. Precise Inventory Management: Real-time tracking, Low-stock alerts & Shrinkage control.
3. Data-Driven Decision Making: Sales trends, staff performance & accounting integration.
4. Improved Customer Relationships: Customer profiles, loyalty programs & digital receipts.
5. Multi-Channel Synchronization: In-store & online.
How long does it take to learn how to use a POS system?
Most POS systems are easy to learn and use because the display is designed to be intuitive and customizable. This means you can configure how buttons function, create shortcuts for your most used feature, and access tool tips as you go along.
Basic POS functions such as processing sales, refunds, and reconciling the cash register can be easily learned in a few hours. However, more advanced tasks such as managing inventory, running reports, and adjusting settings may take more time to learn. It’s important to take the time to learn these functions, including how to secure the system from unauthorized access.
Can I change POS settings after the initial setup?
Most settings, such as tax rules, inventory tracking method, stock levels, and user permissions, can be easily changed. However, this must be done outside of business operating hours to avoid errors in your reports.
Please note that core business profile data can not be changed without contacting your software provider first. This includes your business contact details, time zone, linked business bank, and software subscription.
Do POS systems work without an internet connection?
Modern POS systems can work without an internet connection for some time. However, cloud-based systems need to be online as the business data is stored remotely. Without an internet connection, cashiers can continue processing payments, but all transactions are temporarily saved on the device.
This means your inventory and sales records remain unchanged until the internet connection is restored. Prolonged use of a POS system offline can result in inaccurate tracking of sales data, revenue, and inventory levels. Real-time card payment authorization is also not available.
Is staff training required to use a POS system?
It’s advisable to have your staff trained on how to use the POS system. A few hours of hands-on experience in performing test sales, refunds, voids, and return processes will help to ensure that there are no delays during the actual transactions. Some staff with higher permissions will require additional training on business management features that they are meant to use.
We suggest that you create a training manual for every feature available in your POS system. This way, you can share only sections based on your employee’s role. It’s also crucial to include best practices in your training, especially on how to keep your POS system safe from unauthorized use.
How secure are POS systems for handling payments?
POS systems are protected by layers of network security, plus your user-based controls, such as role-based permissions and ID tracking. When it comes to handling payments, however, it’s the merchant processor’s role to install the necessary security.
Ideally, you need to choose a provider whose system comes with data encryption, security protocols, and a machine-learning fraud monitoring feature. These technologies comply with industry standards designed to reduce the risk of unauthorized data access and fraud. Some advanced systems allow you to customize these monitoring tools from the dashboard.
What should I do if my POS system stops working?
Basic troubleshooting should be your first step if your POS system stops working. It’s important to focus on the system alerts or error messages being displayed. From there, you get clues as to what the issue is and how to check them. This includes tasks such as restarting your device, checking your internet connection, and checking your hardware setup.
If the issue persists after conducting your troubleshooting steps, contact your POS provider immediately. Make sure to describe the problem, the error messages, and the steps you took in trying to fix them. It is also a good idea to list potential major POS system issues beforehand and have a backup plan prepared that will help minimize downtime.
Can a POS system be customized for different business needs?
Yes! The best POS systems are those that are tailored to your business growth plans. It’s important that you only pay for hardware and software that you need while also having the option to upgrade when you’re ready. Long-time industry experts like BIMI can help you match your business needs with the right POS features.
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