Best Point of Sale (POS) for Small Business (2024)

The best point-of-sale (POS) for small businesses helps them succeed by facilitating transactions. The system not only allows you to accept customer payments but also manage employees and sales, track inventory, and enhance the daily functions of the business.

POS systems also offer multiple hardware choices in feature-rich POS software, and most are built-in payment processing services.

When searching for a POS system, you’ll discover hundreds of software to choose from, meaning finding the ideal choice can be challenging.

The best POS system must be transparent in pricing, have a user-friendly interface, and have a comprehensive basic plan.

Most reputable software companies have a basic plan that allows users to try a tool’s capabilities before upgrading to a paid version. Plus, most of these tools aren’t compatible with third-party payment processors, meaning you must pair them with a different payment processor.

Small businesses may need help choosing the best point-of-sale (POS) system from the saturated market and budget limitations. Incorpuk in this guide explores the best systems to serve your unique business needs while supporting your objectives.

We have reviewed and evaluated the top POS providers based on user experience, pricing, and features.

It’s time to reveal the best POS for small businesses.

1. Square

Square is the top POS system because it’s ideal for all small businesses. In addition to general POS services, the system also offers industry-specific POS systems for restaurants, beauty, retailers, wellness operations, and service-based industries.

The software ensures there’s something for everyone needing help receiving customer payments and managing their business. Plus, it comes with a free version, which helps you understand what the POS system can do and more advanced plans to support your business as it grows.

Square is straightforward software with great customer and expert reviews. It’s one of the best POS hardware that offers value for money and supports small businesses as they expand.

Square has free and paid plans. The software is also compatible with brick-and-mortar retailers, high-risk retailers dealing with CBD and liquor, and service businesses. Square POS is compatible with Android OS and iOS devices. Let’s look at the Pros and Cons of the Square POS system.

PROS:

1. A forever basic plan (free)
2. Flatrate payment, which is highly competitive
3. It allows add-ons that support growth and advanced plans
4. Supports multiple businesses

CONS:

1. Users must use Square payment.
2. The loyalty program doesn’t apply to any plans, only add-ons.
3. Can’t be integrated into most eCommerce platforms, including TikTok shop

Square Key Features

Square POS software offers users in different industries a free system to start a small business. The software covers more ground than others as it comes with integrated payments, an online store, and top-tier hardware. Here are more reasons to choose Square POS:

1. The basics of POS systems go beyond the basic roles played by most POS systems, and you can advance to access more advanced features for your business.
2. Industry-specific POS systems in Square serve different businesses with specific tools for each industry. Each version has a free and paid plan for any small business with an opportunity to access advanced features as the company grows.
3. Square offers an in-house Integrated payments solution that processes all types of payments, both online and in person. The software has partnered with Afterpay, which offers customer financing for in-store and online purchases.
4. All Square accounts offer a free online store builder. Each industry-specific POS can build an online store suitable for its needs and integrate third-party e-commerce solutions. However, the integration options for third-party e-commerce solutions are limited.
5. In addition to Square’s advanced options, you can purchase add-on tools like payroll and loyalty programs monthly.
6. A chance to create a Bespoke POS system if a business outgrows all Square Plus plans. You work with their developers to create a bespoke POS system with customised tools and features for your business type.

2. Clover

Clover is a POS system that offers various features for various businesses with different plans and prices to meet multiple needs.

The software has industry-specific features ideal for businesses in retail and service industries. These features help with order and table management, kitchen printers, menu management, processing online orders, customer engagement, invoicing, automated client notifications, payroll, and employee management. Clover’s pricing is competitive because its hardware is costly, but the package offers high-quality products and value for money.

Clover Key Features

Clover POS is feature-rich software that offers all the essential features you expect from a POS system. The most significant benefit of using Clover POS is its beyond-industry-specific features and integrations.

Countless software apps on the CloverApp market can manage different aspects of a business. The apps integrate seamlessly with Clover devices, enabling small businesses to take off and making it a versatile and comprehensive POS system. These features include:

1. A seamless acceptance of customer payments in various ways,
2. Tracking sales
3. Employee management
4. Invoicing
5. Reporting sales
6. Order and inventory management
7. Cash flow services like rapid deposits and cash advances

Add-Ons

Besides its core features, Clover allows you to add several add-ons to increase its capabilities as a POS system further. Clovers offers these add-ons:

1. Online storefront
2. Cash drawer to retail businesses
3. Payroll integration
4. Swivel stands for its mini terminal.

In addition, Clover offers a wide variety of hardware, including weight scales (used in grocery stores), restaurant kitchen printers, and barcode scanners for retail businesses.

With its comprehensive features and integration capabilities, Clover is an ideal POS system for many businesses. As you decide to use Clover in your startup, here are the pros and cons you need to know about:

PROS:

1. The fee for the first three months is waived if no hardware is received
2. The CloverApp Market extends the functionality of the POS by offering various integrations
3. Competitive prices on its monthly plans
4. 24/7 customer service by phone and email
5. A wide range of hardware is available

CONS:

1. The price difference depends on the Clover partner you’re ordering from
2. Expensive hardware
3. No live chat support

3. Toast

Toast is a POS system built specifically for the food service industry, with tools to support restaurants, cafes, catering businesses, food trucks, and more. The system includes tools fashioned for restaurants, including:

1. Online ordering
2. Delivery management
3. Tableside service
4. Kitchen display system (KDS)
5. Menu-based ingredient-level inventory management

Toast bundles its hardware and software, ensuring you have the tools to get your restaurant up and running. Plus, there are several customisable payment options, like pay-as-you-go, so small businesses can pay as revenue comes in and don’t start their business in a debt hole.

PROS:

1. A free basic plan
2. Hardware option for Pay-as-you-go
3. In-house ordering platform
4. Restaurant-specific tools and features

CONS:

1. The POS only functions on Toast hardware.
2. There is no mobile app, so access is only through a browser
3. A standard contract for two years
4. Frequent hardware updates
5. The user interface (UI) is a learning curve.

Toast Key Features

Toast is an ideal POS for small and established restaurants. The POS system has industry-grade hardware for tableside service, kitchen running, and counter checkout. Its wide range of tools meets the needs of cafe and restaurant services.

Toast offers a free plan and custom pricing for large-scale operations, making it the ideal system for small businesses while ensuring support as the company grows. The POS system also offers hardware for pay-as-you-go, allowing small businesses to take off with no upfront costs and an opportunity to pay as income starts to flow. Here are Toast’s features that make it an ideal POS system:

1. A restaurant-specific POS system with a simple order and checkout screen. It also integrates payments, menus, tables, real-time inventory, seating management, and detailed reporting. Although Toast’s functions are only available on its hardware, you can access your POS account online on any browser.
2. Toast’s tableside Service is a handheld POS that can take orders, forward them to the kitchen, and complete payments from the diners’ tables. It allows waitpersons to get notifications for ready orders and collect customer reviews from the same device.
3. Toast offers online ordering and delivery, which enables businesses to integrate third-party delivery channels. You can also design a free online ordering and takeout channel for your website, the Toast TakeOut app, or a phone.
4. The Toast POS system delivers detailed reporting insights on how ingredients and menu levels operate by location.
5. Toast POS Menu management updates keep the staff updated, set menu countdowns for special deals, and ensure your staff knows what’s coming ahead of time. All these functions can be achieved from any terminal or the main POS account.

4. Lightspeed

Lightspeed is an eCommerce software solution designed to streamline the functions of retail and restaurant businesses. It’s famous for its user-friendly interface and fantastic features that enable companies to manage various activities like customer relationships, sales, and inventory. Lightspeed’s functionalities are powerful enough for businesses to process transactions quickly and securely.

Its Straightforward user interface makes it easy for users to navigate through the software. Checking out is fast, which enhances customer experience. Additionally, the software manages inventory, providing real-time insights on stock levels and aiding accurate stock control while preventing stockouts or overstocking situations.

Lightspeed has customisable online storefronts, which extend its capabilities to sell products online and integrate payment processing seamlessly. It’s easier for businesses to reach customers beyond their physical locations and drive sales on different platforms. Other functionality include;

1. Advanced reporting and analytics tools
2. Empowering businesses to derive valuable insights into sales performance
3. Customer behaviour
4. Operational efficiency

By leveraging this robust POS software, businesses get insight that assists them in making informed decisions that refine strategies and drive growth. Here are the pros and cons business owners should know about before considering integrating the Lightspeed POS system:

PROS:

1. Industry-specific for POS retail
2. An option to choose from in-house or several third-party payment solutions
3. Granula, Matrix inventory management tools
4. 24/7 customer support

CONS:

1. High months fees
2. Mobile app limitations
3. User-Interface learning curve
4. Pay a monthly fee for using third-party merchant accounts.

Lightspeed Key Features

Lightspeed has advanced tools for managing complex inventories, monitoring vendors, and integrating purchase order tools. These built-in product catalogues allow users to shop and place orders from the POS account. Lightspeed has the following features that appeal to business owners.

1. Marketing tools that segment shoppers, SMS marketing integrations, gathering customer reviews, automated alerts and promotions campaigns.
2. Lightspeed Ecommerce plans include Lightspeed online, in-house ecom platform, or integrate it with several other eCommerce platforms.
3. The customisable checkout on Lightspeed has tiles you can dedicate to the most used products and functions on the checkout screen.
4. Lightspeed B2B is a built-in product catalogue where you can shop as a wholesaler and place orders from your POS. Once the products you order from other product catalogues arrive, the feature automatically adds them to your inventory catalogue for tracking. The ordered products are added with their complete product details.
5. Inventory management on Lightspeed is on another level, as it is complex enough to serve extensive inventories with many products. The inventory manager has a built-in feature for buying and placing orders. They monitor functions like special orders, issuing low-stock alerts, bulk action tools, and counting tools.
6. Lightspeed allows you to integrate your accounting software into your POS software. With this integration, you can do your bookkeeping from your dashboard.
7. The Loyalty program on Lightspeed is customisable to monitor customer rewards across your sales channels, depending on the structures in place.
8. Lightspeed has reporting tools, including custom reports and analytics. They gather data to provide actionable insights based on performance.

5. Shopify POS

Shopify is famous in the eCommerce industry as a retail space that supports online sellers across different sales channels. The Shopify POS has a complete integrated payment system, a basic level for occasional in-person sales, and advanced plans supporting your growth. The POS has various plans for small businesses at every stage, with an impeccable eCommerce site builder that’s easy to navigate, omnichannel selling features, and marketing tools.

PROS:

1. Best for eCommerce
2. Easy to integrate into other marketplaces (TikTok, FaceBook, Instagram, eBay, Amazon)
3. Advanced plans for eCom and point-of-sale systems
4. 101 customer support round the clock (24/7)

CONS:

1. No free plan
2. Extra charges if you don’t use Shopify payments
3. eCommerce plans only access lite POS

Shopify Key Features

The Shopify POS system is ideal for small businesses that sell products online and conduct few in-person sales. Thanks to its eCommerce tools, you can purchase Shopify’s POS system independently, as it functions as a standalone software.

The POS has dozens of design templates and countless integrations for different sales channels. Additionally, it has unbeatable online marketing and selling tools to support online sellers on various sales channels.

For sellers who focus on eCommerce, the POS has a basic plan suitable for occasional in-person sales. Here are the features that come with Shopify POS software:

1. Ecommerce site builder templates for specific industries in eCommerce are available for any small business. The feature is easy to use, and customisable options are accessible at any time for edits and adjustments from your Shopify account.
2. Scalable POS system in the Lite POS system. The POS features include inventory management, staff management, reporting, and CRM tools in the basic plan. However, you can upgrade to PRO if your business needs advanced features.
3. Shopify app store can integrate with hundreds of third-party tools you pay for monthly. Some third parties you can incorporate include loyalty programs, outreach marketing, inventory management, and analytics.
4. Shopify Payments are integrated into every POS software, so you can receive payments and complete sales once you register your POS account.
5. Omnichannel selling (Pro) allows you to integrate all your sales channels into your POS. As a result, you unify staff, inventory, and customer management and access the data everywhere you sell. Shopify sales channels are available on all marketplaces you want to track, and Shopify will do the rest.
6. Marketing automations on Shopify help you promote stores through SEO and targeted ads and reach new and existing customers through email and targeted SMS automated triggers.
7. Shipping discounts apply to major shipping companies, and you can also print the details from your Shopify account.
8. Shopify boasts a top-converting checkout UI, Shop Pay, which they say has the highest conversion rate compared to other e-commerce platforms.

6. Helcim

Helcim offers a basic POS system that completes sales, tracks inventory, manages customers, and reports your small business performance. The payment processing company doesn’t charge upfront fees; you pay for the Helcim card reader and payment processing.

Helcim uses interchange-plus pricing for all transactions. This means users only pay the minimum processing fee with increasing discounts as their transactions increase. The POS system is compatible with various devices, but you must download the Helcim Payments app. Download the app, pair your device with the Helcim Card Reader, and start using the POS system.

PROS:

1. Free software
2. Cost-effective
3. Interchange-plus processing fee
4. Invoicing and subscription management tools

CONS:

1. Only basic level, no advanced POS tools
2. You must purchase Helcim hardware to process hardware.
3. Limited eCommerce integrations
4. No marketing tools

Helcim Key Features

Helcim’s POS tools are not the most advanced but ideal for service-based businesses with limited inventories and basic retail needs. The POS stands out in its professional service tools for simple companies in healthcare, law, the automotive industry, consulting, wholesale, contracting, and accounting. Helcim is famous for these features:

1. Invoicing on Helcim software is free, which simplifies billing and payment operations and allows you to make significant savings on processing fees.
2. Interchange-plus pricing allows you to enjoy the lowest rates, and you don’t pay for merchant markups. The higher the transactions you process, the more you save.
3. Subscription management services are set up for recurring payments made on credit cards and ACH payments.
4. A free POS system comes with all the essential tools a small business needs, and it can function on a personal device as long as you download the app.
5. Inventory management tracks your inventory catalogue to track the levels and performance without missing a bit.
6. Add customers to your CRM directory, enter the contact details, store payment methods, and monitor their activity.
7. Reporting tools on Helcim allow you to review your business’s performance, sales totals, transactions, tipping details, sales by category, tender use, invoicing totals, and product sales.

7. IT Retail

IT Retail is a POS solution designed explicitly for grocers, markets, and convenience stores. With tools like ID scanning, scale integrations, a customisable rewards program, and hardware solutions specific to the food-selling industry, IT Retail is the best in the game for small business food sellers and convenience stores. The system is popular in the small business grocery industry, with thousands of satisfied customers. You can customise the system in countless ways to make it work for you.

PROS:

• Hardware and software tools are only meant for grocery stores.
• Self-checkout hardware
• Online grocery store
• Scale integration

CONS:

• Must use IT retail payment solution
• Proprietary hardware is expensive yet a must purchase
• A fee is charged for eCommerce integration add-ons.
• High monthly fees

IT Retail’s Key Features

IT Retail is an excellent option for small businesses like food markets, grocers, and convenience stores. The POS system is well-equipped with all the necessary software tools and hardware solutions to support food-selling enterprises.

As your business expands, IT retail can scale and support additional grocery solutions, such as weighted sales, e-commerce, and sales in different locations. While IT Retail is costly, thousands of users find the POS system worth the investment.

1. Advanced inventory management tools on IT Retail POS are dedicated to food sellers.
2. A reporting tool that can view sales reports, individual performances, and reports by department. The data is broken down into easy-to-read tables and graphs. The retail reports from IT Retail can be downloaded directly to Excel and QuickBooks for further analysis or accounting.
3. Online grocery integrations can partner with other online grocery platforms to display your online orders, sales, and inventory. The different activities integrate seamlessly into your POS system, allowing you to monitor all your sales channels in one place.
4. Contactless self-checkout solutions enable customers in kiosks and apps to download, scan and purchase in your store.
5. Deli scales track inventory for stores that weigh food, and the POS system works seamlessly with labels printed out.
6. Customer loyalty programs integrate seamlessly with your POS. They create tailored loyalty programs that allow customers to gain points for specific actions they choose to reward and will automatically apply to their purchases.
7. Integrated payments come with the POS; you can start processing payments immediately.

How Does a POS System Work?

POS systems are the modern version of cash registers but more advanced. A POS system can calculate a customer’s purchase amount, apply sales tax, accept payment, and indicate the time and date of this transaction.

Brilliant, right?

POS systems have three main components, namely:

1. Hardware
2. Software
3. Payment processing services

Let’s have a rundown of how each component functions.

POS Hardware

Hardware is standard in POS systems but not necessary for online stores. Some standard POS hardware include:

1. Credit and debit card readers are familiar with people who make in-person sales. A card reader will integrate with an app on their smartphone, while others are linked via Bluetooth. The best credit card readers allow you to swipe, dip or tap cards that may be attached to a more powerful POS system.
2. Countertop terminals are necessary for brick-and-mortar shops where customers line up to purchase products. A complete countertop has a larger screen, a built-in card reader, and an optional cash drawer.
3. Customer displays are separate screens that display customer orders and payment details, while the merchant handles the payment details on the other side of the counter.
4. Kitchen display systems (KDS) replace the paper ticket system in a restaurant. KDSs work from the front house then send orders to the kitchen screen. The staff can view, make alterations, and monitor the orders from the kitchen.
5. Self-ordering kiosks use these standalone systems to empower customers to place an order and pay for it alone without abandoning other business activities.
6. Additional accessories include receipt printers, cash drawers, barcode scanners, kitchen scales, and label printers.

POS Software

1. On-premises POS software (legacy system) is only accessible on the installed POS. The system facilitates services like payment processing and employee scheduling, logs sales, and then syncs them with accounting software. The software is ideal for small businesses prioritising in-store sales with a single POS terminal.
2. Cloud-based POS software syncs information from several POS terminals offering mobile and desktop access. These POS systems are more flexible and viable for eCommerce businesses, mobile businesses, and those with several terminals.

Payment processing services

A payment processor is a go-between for debit and credit card transactions between a wholesaler, the customer, and a financial institution (bank). Most POS system vendors double up as credit card processing companies, meaning they handle card transactions, but the services come with additional fees.

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Frequently Asked Questions

Which is the most used point-of-sale system?

Square is the most used POS system, an all-in-one solution for any business. The POS has features that manage inventory, reporting, customer loyalty programs, and analytics. Square has a customer base of 2 million companies, making the integrated payment processing solution the most popular POS in the market today.

Do all POS systems charge a monthly fee?

POS systems charge a one-time purchase fee, while others have a basic free level, which can be upgraded to paid plans that accommodate growth. As for hardware purchases, POS systems charge a one-time fee for store register systems, mobile card readers, and other payment equipment.

How much will I pay for a small POS system?

In the first year, a small POS system may cost between $0 and $2,000, including hardware, software, and installation fees. The prices may change in the second year depending on the POS system size, feature updates, and income stream. However, you need to note that the majority of all POS systems have a basic free level that any business can leverage when starting and then upgrade to a paid version as the business grows.

In Summary

A Point-of-Sale (POS) system comprises hardware, payment services, and software businesses use to make sales. As the title suggests, a POS system exists physically or at a virtual point of sale.

Businesses that only operate online don’t need the hardware part to have a complete POS system. Generally, a POS system documents customer purchases, processes payments, prints receipts, and sends them as text or email notifications.

The best POS systems for small businesses create reports, aid in inventory management, track employee working hours and customer loyalty programs, and make reports.

The internet has countless options for different point-of-sale (POS) small businesses. Small businesses’ best point of sale (POS) offers various services that simplify operations beyond facilitating transactions.

POS systems help streamline your business’s daily operations streamline your business’s daily operations by combining software tools. Choosing the best POS system will depend on your business, as some are industry-specific while others are suitable for any venture. Kindly contact one of our experts here if you have questions.