Best POS System for Small Businesses: Our Top Recommendations

Running a small business is no small feat. You’ve got inventory to track, customers to serve, and sales to manage - all while keeping operations efficient.

Ever struggled with outdated registers, missing sales data, or clunky payment systems? You’re not alone.

Here’s the thing: a robust POS system can transform your small business operations. Whether you’re managing a retail store or a café, the right system saves time, reduces errors, and boosts customer satisfaction.

In this blog, we’ll explore the best POS systems for small businesses, their features, and how to choose the one that fits your needs. Let’s dive in!

What is a POS System?

A POS (Point of Sale) system is more than just a cash register. It’s a complete solution that handles sales, payments, inventory, and analytics in one place.

Modern POS systems enable:

• Card, cash, and mobile payments: Accept various payment methods seamlessly.
• Inventory tracking: Keep tabs on stock levels in real-time.
• Sales reports and performance insights: Gain valuable data to make informed decisions.
• Customer management: Maintain customer information and track purchase histories.

With cloud-based options, today’s POS systems work across devices like tablets and smartphones, keeping you in control wherever you are.

Why is a Robust POS System Important for a Small Business?

The right POS system isn’t just convenient; it’s essential. Here’s why:

Streamlines Operations

A robust POS system significantly streamlines operations for small businesses. Efficient order-taking, faster payments, and improved order accuracy all contribute to smoother workflows. Integration with kitchen displays and other devices further accelerates order fulfilment.

Tracks Inventory

Effective inventory management is crucial for any business. A POS system provides real-time stock levels, enabling businesses to avoid stockouts and prevent overstocking. Automated reordering alerts minimise the risk of running out of crucial products. Furthermore, by tracking product expiration dates, businesses can reduce waste and optimise inventory costs.

Boosts Sales

A well-implemented POS system can directly boost sales. Faster checkout times enhance the customer experience, increasing customer satisfaction and reducing wait times. The system also facilitates upselling and cross-selling opportunities, allowing businesses to suggest complementary products or larger quantities to increase average order value. Loyalty programs and targeted promotions further incentivise repeat business and attract new customers.

Improves Insights

A key benefit of a POS system is the valuable insights it provides. Detailed sales reports help businesses track sales trends, identify peak hours, and analyse customer behaviour.

Customer analytics offer a deeper understanding of customer preferences and spending habits. By tracking key performance indicators (KPIs) such as gross profit margin and cost of goods sold, businesses can gain valuable insights into their profitability.

These insights empower data-driven decision-making regarding pricing, inventory, marketing, and staffing strategies.

Enhances Customer Experience

A positive customer experience is paramount for business success. A POS system contributes to this by enabling personalised service based on customer data and preferences.

Offering a variety of payment options caters to diverse customer needs and preferences. Effective communication through email receipts, order updates, and loyalty program notifications strengthens customer relationships.

Ultimately, these efforts contribute to building customer loyalty and fostering long-term relationships.

Reduces Errors

Human error is inevitable, but a POS system can significantly minimise its impact. By automating tasks such as order entry, inventory tracking, and payment processing, the system reduces the likelihood of human error.

This leads to improved accuracy in order fulfilment and minimises the risk of incorrect items or missing orders. Additionally, the system streamlines the reconciliation process at the end of the day, reducing the time spent on administrative tasks.

Facilitates Multi-Channel Selling

A robust POS system enables businesses to manage online orders, in-store sales, and delivery orders from a single platform. This expanded reach allows businesses to tap into the growing demand for online shopping and capitalise on new sales opportunities.

By offering customers the flexibility to shop when and where they prefer, businesses can enhance customer convenience and cater to diverse shopping preferences.

By streamlining operations, improving inventory management, boosting sales, enhancing customer experience, and reducing errors, a POS system empowers businesses to thrive in today's competitive market.

Best POS System for Small Businesses: Our Top Recommendations

When searching what is the best POS system for a small business, several options stand out. Here are our top picks:

Square

Square is a household name in the POS industry—and for good reason.

• Pros: User-friendly, free software, low upfront costs.
• Best For: Cafés, retail stores, and solo entrepreneurs.
• Highlight Feature: Integrated online store capability.

Pricing:

• Free Plan: Basic POS features with no monthly fees.
• Square for Retail: Starting at AUD 60 per month per location.
• Transaction Fees: 1.6% per swipe for card payments.

Best-Fit Industry:

• Retail Stores and Cafés: Perfect for businesses that need a simple, cost-effective solution with the option to scale as they grow.

Square offers a seamless experience with its intuitive interface. It’s perfect for businesses just starting out, offering essential features without the hefty price tag. Plus, with Square’s free software, you can get up and running quickly.

SumUp

Perfect for businesses seeking simplicity and affordability.

• Pros: Low transaction fees, simple interface.
• Best For: Mobile businesses like food trucks or market stalls.
• Highlight Feature: Card readers with no monthly fees.

Pricing:

• Card Reader: One-time purchase starting at AUD 50.
• Transaction Fees: 1.75% per transaction.
• No Monthly Fees: Pay only when you make sales.

Best-Fit Industry:

• Mobile Businesses: Ideal for food trucks, market stalls, and any business that operates on the go.

SumUp is ideal for businesses on the move. Its compact card readers are easy to carry, making it perfect for pop-up shops and mobile vendors. With no monthly fees, it’s a cost-effective choice for small businesses.

Takepayments

A great option for businesses wanting flexible contracts.

• Pros: No long-term commitment, fast setup.
• Best For: Hospitality and retail sectors.
• Highlight Feature: Pay-as-you-go pricing model.

Pricing:

• Setup Fee: No setup fees.
• Transaction Fees: Starting at 1.8% per transaction.
• Monthly Plans: Flexible pay-as-you-go options available.

Best-Fit Industry:

• Hospitality and Retail: Great for restaurants and shops that need flexible payment solutions without long-term contracts.

Takepayments offers the flexibility that many small businesses need. With no long-term contracts, you can scale your usage based on your business needs, making it a smart choice for growing businesses.

Zettle

From the makers of PayPal, Zettle blends ease with reliability.

• Pros: Simple hardware, great for small-scale businesses.
• Best For: Cafés and boutique stores.
• Highlight Feature: PayPal integration.

Pricing:

• Free App: No monthly fees for the basic app.
• Card Reader: Starts at AUD 59.
• Transaction Fees: 1.75% per swipe.

Best-Fit Industry:

• Boutique Stores and Cafés: Suitable for small-scale businesses that require reliable payment processing with easy PayPal integration.

Zettle is known for its reliability and seamless PayPal integration. It’s a solid choice for businesses that want a straightforward POS system without compromising on essential features.

Lightspeed

An advanced solution for multi-store businesses.

• Pros: Customisable workflows, robust analytics.
• Best For: Restaurants, retail, and hospitality.
• Highlight Feature: eCommerce integration.

Pricing:

• Retail Plan: Starts at AUD 69 per month per location.
• Restaurant Plan: Starts at AUD 99 per month per location.
• Advanced Features: Available at higher tiers with additional costs.

Best-Fit Industry:

• Multi-Store Retail and Restaurants: Ideal for businesses with multiple locations or those needing advanced inventory and analytics features.

Lightspeed is perfect for businesses with multiple locations or those looking to expand. Its robust analytics and customisable workflows help manage complex operations with ease.

Airwallex

A growing player offering innovative solutions.

• Pros: Multi-currency support, modern interface.
• Best For: Globally focused small businesses.
• Highlight Feature: Cross-border payments.

Pricing:

• No Monthly Fees: Pay only for transactions.
• Transaction Fees: Vary based on volume and currency, starting around 1.5%.
• Additional Fees: May apply for certain services like cross-border payments.

Best-Fit Industry:

• Global Businesses: Perfect for companies that operate internationally and need multi-currency support and efficient cross-border payments.

Airwallex is ideal for businesses operating internationally. With multi-currency support and efficient cross-border payment solutions, it caters to the needs of global entrepreneurs.

EPOS Now

Combining affordability with features, EPOS Now caters to various industries.

• Pros: Scalable, extensive integrations.
• Best For: Retail and hospitality.
• Highlight Feature: Customisable dashboards.

Pricing:

• Basic Plan: Starts at AUD 69 per month per terminal.
• Advanced Plans: Additional features available at higher prices.
• Hardware Costs: Separate purchase required.

Best-Fit Industry:

• Retail and Hospitality: Suitable for businesses looking for a scalable solution with extensive integrations and customisable dashboards.

EPOS Now offers a versatile solution suitable for different industries. Its scalable nature ensures that it grows with your business, providing the features you need at every stage.

Fondy ePOS

An excellent choice for businesses seeking simplicity in payment solutions.

• Pros: Simple interface, competitive pricing.
• Best For: Small-scale businesses with basic needs.
• Highlight Feature: Fast payment processing.

Pricing:

• Basic Plan: Free with transaction fees of 2%.
• Premium Plans: Starting at AUD 29 per month with lower transaction fees.
• No Long-Term Contracts: Flexible pricing options available.

Best-Fit Industry:

• Small-Scale Businesses: Ideal for shops and cafes that need a simple, affordable POS with fast payment processing.

Fondy ePOS is perfect for businesses that need a straightforward, no-fuss POS system. Its competitive pricing and quick payment processing make it a reliable choice for small businesses.

AirPOS

Tailored for retailers and wholesalers.

• Pros: Multi-location support, affordable pricing.
• Best For: Small retail businesses.
• Highlight Feature: Stock control and reporting.

Pricing:

• Starter Plan: Starts at AUD 49 per month.
• Advanced Plans: Offer more features at higher costs.
• Transaction Fees: Competitive rates based on volume.

Best-Fit Industry:

• Retailers and Wholesalers: Best for small retail businesses that need robust stock control and detailed reporting across multiple locations.

AirPOS is designed with retailers in mind. Its robust stock control and detailed reporting features help manage inventory efficiently across multiple locations.

Shopify

Shopify’s POS shines for businesses selling online and in-store.

• Pros: Seamless eCommerce integration, great for scaling.
• Best For: Online-first businesses with physical locations.
• Highlight Feature: Omnichannel sales support.

Pricing:

• Basic Shopify POS: Included with Shopify plans starting at AUD 39 per month.
• Advanced Shopify POS: Higher-tier plans offer more features at increased costs.
• Transaction Fees: Varies based on Shopify plan, starting at 2.6% + 10c per transaction.

Best-Fit Industry:

• Online and Physical Stores: Perfect for businesses that sell both online and in-store, offering seamless integration between eCommerce and physical sales channels.

Shopify is a powerhouse for businesses that operate both online and offline. Its seamless integration with eCommerce platforms allows for a unified sales strategy, making it easier to manage and scale your business.

What Features Should a Small Business POS Have?

When choosing a POS system, these features are essential:

• Ease of Use: The interface should be intuitive and straightforward, allowing quick training for staff.
• Inventory Management: Real-time stock tracking is crucial to avoid running out of popular items or overstocking.
• Payment Options: Supports credit/debit cards, digital wallets, and cash to cater to all customer preferences.
• Reporting and Analytics: Offer actionable insights on sales, customer behaviour, and performance to help you make informed decisions.
• Integrations: Works seamlessly with accounting software, eCommerce platforms, and other tools you use daily.
• Mobile Access: Cloud-based systems ensure you can operate anywhere, whether you’re on the shop floor or managing remotely.
• Customer Management: Maintain detailed customer profiles, track purchase histories, and manage loyalty programs.
• Security Features: Protect sensitive data with robust security measures like encryption and user access controls.
• Customisation: Tailor the POS to fit your specific business needs with customisable menus, layouts, and reporting options.
• Support and Training: Reliable customer support and comprehensive training resources to help you get the most out of your POS system.

Features of Each POS System

Understanding the features of each POS system is crucial in determining what is the best POS system for a small business.

Here’s a detailed look at the key features each of our chosen top 10 POS systems offers:

Square

• User-Friendly Interface: Easy to navigate, making it simple for staff to learn and use.
• Integrated Online Store: Seamlessly connect your physical store with an online presence.
• Inventory Management: Track stock levels in real-time and receive alerts for low inventory.
• Sales Reporting: Generate detailed reports to analyse sales trends and performance.
• Customer Directory: Store customer information and purchase history to enhance loyalty programs.
• Mobile POS: Use tablets and smartphones to process sales anywhere in your store.
• Employee Management: Track employee hours and manage permissions directly from the POS.
• Hardware Compatibility: Works with a variety of hardware including card readers, cash drawers, and receipt printers.

SumUp

• Compact Card Readers: Portable and easy to use for mobile transactions.
• Simple Interface: Intuitive design that requires minimal staff training.
• Secure Payments: PCI DSS compliant to ensure secure transactions.
• Real-Time Sales Tracking: Monitor sales as they happen, helping you make informed decisions quickly.
• Invoice Generation: Create and send invoices directly from the POS system.
• Multi-Currency Support: Accept payments in different currencies, ideal for businesses with international customers.
• Integration with Accounting Software: Sync sales data with popular accounting tools for streamlined financial management.
• Customisable Receipts: Tailor receipts with your branding and essential business information.

Takepayments

• Flexible Payment Options: Accept a wide range of payment methods including contactless and mobile payments.
• Cloud-Based System: Access your POS from anywhere with an internet connection.
• Customisable Interface: Adapt the POS layout to fit your specific business needs.
• Detailed Analytics: Gain insights into sales patterns, customer behaviour, and inventory performance.
• Loyalty Programs: Implement customer loyalty programs to encourage repeat business.
• Employee Management: Track sales by employee and manage shifts and permissions.
• Integration with E-commerce Platforms: Connect your POS with online stores to unify sales channels.
• Automatic Updates: Receive regular updates to ensure your POS system is always up-to-date with the latest features and security measures.

Zettle

• PayPal Integration: Easily connect with your PayPal account for seamless transactions.
• Customisable Receipts: Personalise receipts with your logo and business details.
• Inventory Management: Keep track of stock levels and receive notifications when items are low.
• Sales Analytics: Access detailed reports to understand your sales trends and business performance.
• Mobile POS: Use Zettle on smartphones and tablets for flexible sales operations.
• Customer Management: Store customer information and purchase history to improve service and marketing efforts.
• Offline Mode: Continue processing sales even without an internet connection, ensuring no interruptions during transactions.
• Multiple Payment Options: Accept various payment methods including credit/debit cards, contactless payments, and mobile wallets.

Lightspeed

• Advanced Inventory Management: Manage complex inventory with features like bulk editing, barcode scanning, and supplier management.
• Customisable Workflows: Tailor the POS to match your business processes, whether in retail or hospitality.
• Robust Analytics: Access in-depth reports and analytics to drive strategic decisions.
• eCommerce Integration: Sync your physical store with your online store for a unified sales experience.
• Multi-Store Management: Easily manage multiple locations from a single dashboard.
• Employee Management: Track employee performance, manage schedules, and control access to sensitive information.
• Customer Relationship Management (CRM): Build detailed customer profiles to enhance marketing and customer service.
• Mobile App: Manage your business on the go with Lightspeed’s mobile application.

Airwallex

• Multi-Currency Support: Handle transactions in multiple currencies, ideal for international businesses.
• Cross-Border Payments: Efficiently manage payments across different countries with minimal fees.
• Real-Time Reporting: Access up-to-the-minute reports on sales, expenses, and transactions.
• Secure Transactions: Advanced security features to protect your business and customer data.
• Integration with Global Platforms: Connect with various global eCommerce and accounting platforms for streamlined operations.
• Automated Reconciliation: Simplify your accounting with automated transaction reconciliation.
• Customisable Invoicing: Create and send professional invoices tailored to your business needs.
• API Access: Integrate Airwallex with your existing software solutions for a customised POS experience.

EPOS Now

• Scalable Solutions: Adapt the POS system as your business grows, adding more features and integrations as needed.
• Customisable Dashboards: Tailor your dashboard to display the most relevant information for your business.
• Extensive Integrations: Connect with a wide range of third-party applications including accounting, eCommerce, and marketing tools.
• Real-Time Inventory Management: Keep track of stock levels in real-time to prevent overstocking or stockouts.
• Detailed Reporting: Generate comprehensive reports on sales, inventory, and customer behaviour.
• Employee Management: Monitor employee performance, manage shifts, and control access levels.
• Customer Loyalty Programs: Implement loyalty programs to reward repeat customers and increase retention.
• Mobile Access: Manage your business remotely with EPOS Now’s mobile capabilities.

Fondy ePOS

• Fast Payment Processing: Handle transactions quickly to reduce wait times and improve customer satisfaction.
• User-Friendly Interface: Simple and intuitive design that makes it easy for staff to use.
• Competitive Pricing: Affordable plans with no hidden fees, making it ideal for small businesses on a budget.
• Real-Time Sales Tracking: Monitor sales as they happen to make informed business decisions.
• Inventory Management: Keep track of stock levels and receive alerts for low inventory items.
• Customisable Receipts: Personalise receipts with your business logo and details.
• Integration with Payment Gateways: Connect with various payment gateways for flexible payment options.
• Customer Management: Store and manage customer information to enhance service and marketing efforts.

AirPOS

• Multi-Location Support: Manage multiple retail locations from a single POS system.
• Stock Control: Efficiently manage inventory across different locations with detailed stock reports.
• Detailed Reporting: Access comprehensive reports on sales, inventory, and employee performance.
• Affordable Pricing: Cost-effective plans tailored for small retail businesses.
• User-Friendly Interface: Easy to navigate, reducing the learning curve for your staff.
• Customisable Menus: Adapt the POS layout to fit your specific business needs.
• Employee Management: Track sales by employee and manage access levels.
• Integration with Accounting Software: Sync sales data with your accounting tools for streamlined financial management.

Shopify

• Seamless eCommerce Integration: Connect your online store with your physical store for a unified sales experience.
• Omnichannel Sales Support: Manage sales across multiple channels including online, in-store, and social media.
• Advanced Inventory Management: Keep track of inventory across all sales channels with real-time updates.
• Detailed Analytics and Reporting: Access in-depth reports on sales, customer behaviour, and inventory performance.
• Customisable Checkout: Tailor the checkout process to match your brand and improve customer experience.
• Customer Profiles: Build detailed customer profiles to enhance marketing and loyalty programs.
• Mobile POS App: Manage your store on the go with Shopify’s mobile application.
• Employee Accounts: Create and manage employee accounts with customisable permissions.
• Integrated Payment Processing: Accept a wide range of payment methods with Shopify Payments and other integrated gateways.
• Security Features: Robust security measures to protect your business and customer data.

This comprehensive overview of each POS system’s features should help you determine what is the best POS system for a small business that aligns with your operational needs and business goals.

Each system offers unique strengths, so consider which features are most important for your specific industry and business model.

How to Choose a POS for a Small Business?

Not all POS systems are created equal. To pick the right one, consider:

• Business Type: A café’s needs differ from a boutique’s. Identify what features are essential for your specific industry.
• Budget: Compare upfront costs, transaction fees, and monthly plans to find a system that fits your financial constraints.
• Scalability: Ensure the POS grows with your business. Look for systems that offer additional features and integrations as you expand.
• Integration Needs: Do you need compatibility with specific tools or platforms, such as your accounting software or eCommerce store?
• Customer Support: Reliable assistance is a must for troubleshooting and ensuring your POS runs smoothly.
• User Reviews: Check what other small business owners are saying about the system. Real-world experiences can highlight strengths and weaknesses.
• Hardware Compatibility: Ensure the POS works with your existing hardware or consider the costs of new devices if necessary.
• Trial Periods: Take advantage of free trials and demos to test options before committing. This hands-on experience can help you make an informed decision.

Take advantage of free trials and demos to test options before committing.

Case Study: How a Local Café Transformed with the Best POS System

Let’s consider a hypothetical case study.

Meet Jane, the owner of “Jane’s Java,” a cosy café in Melbourne. Like many small business owners, Jane juggled multiple roles - from brewing coffee to managing inventory and handling sales.

Her old cash register was slow, making long lines a common sight during busy hours. Tracking inventory manually was time-consuming, and Jane often found herself guessing which items were running low.

Jane decided it was time for a change. She researched what is the best POS system for a small business and chose Square for its user-friendly interface and integrated online store capability.

Here’s how Square transformed Jane’s Java:

• Streamlined Operations: Square’s intuitive interface made it easy for Jane and her staff to manage orders and process payments quickly, reducing wait times for customers.
• Inventory Management: With real-time inventory tracking, Jane no longer had to guess stock levels. She could see exactly what was running low and reorder just in time.
• Sales Insights: Square’s detailed reports provided Jane with valuable insights into her best-selling items, helping her make informed decisions about menu adjustments.
• Customer Experience: The integrated loyalty program kept regular customers coming back, boosting repeat business.
• Cost Savings: With Square’s low upfront costs and no monthly fees for basic features, Jane saved money that she could reinvest into her café.

Thanks to Square, Jane’s Java saw a 30% increase in sales within six months. The efficient POS system allowed Jane to focus more on what she loves - brewing great coffee and connecting with her customers.

Wrapping Up: Find Your Perfect POS System Today!

To sum up, the right POS system is a game-changer. Whether it’s Square for simplicity or Lightspeed for advanced features, there’s a solution tailored to your needs.

Ready to upgrade? Don’t wait - get a free demo and discover how what is the best POS system for a small business can streamline your operations.

For expert guidance on POS solutions, contact Payflo. Let us help you find the perfect fit for your business!

FAQs

1. What is the best POS system for a small business?

The best POS depends on your business type. Square and Shopify are versatile, while Lightspeed excels for restaurants.

2. How much does a small business POS system cost?

Costs vary but expect to pay $0 - $100 per month, plus transaction fees.

3. Can I use a POS system without Wi-Fi?

Yes, some systems offer offline modes, but features may be limited.

4. Do I need a specific device for a POS system?

Not always. Many POS systems work on tablets, smartphones, or existing computers.

5. Is a cloud-based POS better than traditional systems?

Absolutely! Cloud-based systems offer flexibility, remote access, and regular updates.