An Overview on Cash Registers and POS System

Digitization of economy leads to the increase in electronic methods of payments and tracking records. It needs to understand the different methods of payments and also to understand the difference between them. Cash registers and POS are the new technology used for records transactions and keeping day to day tracking of sales.


A cash register is a machine that records sales transactions, gives change and holds money, while A POS system is a computerized system that handles financial transactions, tracks inventory, and records many types of business data. The biggest difference between a cash register and a POS system is efficiency and communication. The major differences between POS and cash registers are as follows:

  1. POS are suitable for large business organizations while Cash Registers are mostly suitable for small business organizations.
  2. POS can perform complex business application either it is keeping track of inventory, generating reports or receipts, while it is not possible with the cash registers.
  3. Inventory management and tracking records of inventory is possible with the use of POS whereas only sales receipts are generated in cash registers and no records of inventory are maintained.
  4. In cash registers, report generation requires sorting of sales receipts while in POS the reports are generated automatically and even employees can generate its own.
  5. It is easy to look up past transactions. If you need to know how much you sold last Tuesday a point of sale system can give you that information in a snap. It would take many hours of laborious work to find the same answer using a cash register.
  6. Pos System is a very convenient, modern and more technical mode of making sales, while cash registers are a traditional and non- technical mode of making transactions.
  7. Modern workers are often more comfortable with point of sale devices than old fashioned cash registers.  The generation now entering the workforce never knew a time without computers, and as a result they are very comfortable working with computerized technology like point of sale devices.
  8. Point of sale devices provides faster service than old fashioned cash registers. Every part of the process, from authorizing a credit card transaction to printing a customer receipt, is faster on a point of sale device.
  9. Customers receive more informative itemized receipts with a point of sale devices. Many cash registers can only print the date and the amount of the sale, but since point of sale devices are tied into the inventory control system they can provide much more detailed information, including a description of the item, the list price and the sale price.
  10. Errors rates are lower in POS system then the cash registers, as POS ensure that correct information is put into the database.
  11. You can see real time inventory with a point of sale device, something that even the best cash registers simply cannot do.  In fact, many companies have found that implementing a point of sale system virtually eliminates the need for a costly hand count.
  12. The maintenance and repair costs are often much lower on a point of sale device than a cash register.  The number of companies that repair cash registers is dwindling, and that means that repair costs can be rather high.  There are many vendors who repair point of sale devices, and that can keep repair costs low.
  13. In the long run a point of sale solution should save you time, money and generate more income than with the use of cash registers.

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