How to select an inventory management and POS system

Your Point of Sale (POS) and inventory system is the core of your daily operations. Your main goal is to choose a system that not only takes customer payments but also automatically tracks what you've sold, so you always know your stock levels. Getting this right saves you hours of manual work and gives you clear, instant data on what's popular with your customers.

Key features to look for

When comparing systems, focus on these core features. Not all businesses need everything, so think about what is essential for you.

• Inventory Management: This is the most important part. The system should automatically update stock levels when you make a sale. Good systems also let you add new stock easily and provide low-stock alerts.
• Sales Reporting: Look for a system that gives you simple, clear reports. You'll want to see your daily, weekly, and monthly sales figures, and easily identify your bestselling (and worst-selling) products.
• Payment Processing: The system must be able to take modern payments, including contactless, chip & PIN, and mobile payments like Apple Pay, in addition to cash.
• Hardware Compatibility: Consider the physical kit you'll need. Most modern systems run on an iPad or tablet, connecting to a card reader, receipt printer, and barcode scanner. Check if you have to buy the hardware from the provider or if you can use your own.
• E-commerce Integration: If you plan to sell online as well as in-person, it's vital to choose a system that can sync your stock between both. This stops you from selling the same item twice.
• Ease of Use: The system should be intuitive for you and any staff to use. A complicated till process can lead to mistakes and frustrated customers.

How to choose the right system

1. List your absolute needs. Before you start looking, write down your "must-have" features. Do you need to manage bookings? Track customer data for a loyalty scheme? Have a clear list to avoid being distracted by features you'll never use.
2. Research the main players. In the UK, popular all-in-one systems for small businesses include Zettle, SumUp, Square, and Lightspeed. Look at their websites to see which are aimed at your type of business (e.g., retail, cafe, services).
3. Compare the costs carefully. Pricing can be confusing. Break it down into three parts to see the true cost.

Cost TypeWhat it isExampleHardware CostThe one-off payment for your card reader, printer etc.£29 for a card reader.Software FeeA recurring monthly or annual subscription for the software.£39 per month.Transaction FeeA small percentage taken from every card sale you process.1.75% of every sale.

A system with no monthly fee might seem cheap, but it could have higher transaction fees that cost you more in the long run if you have high sales volume.

Our Tip: Think about your future. A simple, free system might be perfect for day one, but will it handle multiple staff members or a second location in a year's time? It's often worth paying a small monthly fee for a system that can grow with your ambition.