A man in a black apron stands behind a cash register in a coffee shop. A customer in a denim jacket stands across from him, facing away from the viewer. The cash register sits on a wooden counter and is made up of a large cash drawer and a mounted digital tablet. Behind the tablet, facing the customer, is a small sign reading "Exact Change Only." Behind the cashier, another employee, out of focus, works at a chrome coffee machine.
Some POS software is specifically tailored to restaurants and other businesses in the food and beverage industry. These apps include features like tipping and online ordering. — Getty Images/RichLegg

Point-of-sale (POS) hardware and software are big investments with potentially high returns. Choosing the right setup enables faster checkouts, accurate inventory, and better reporting. The best POS systems for small businesses offer user-friendly apps and must-have features, from integrated payment processing to retail sales analytics.

Below, you can find the best small business POS systems and explore each vendor’s software, hardware, customer support, and subscription plan options. Use our POS software buying guide to evaluate POS platform features, costs, and scalability.

Small business POS software buyer’s guide

A small business point-of-sale system is a transaction management platform for in-person, online, and phone sales. It eliminates friction at checkout, saves time, and surfaces real-time sales data. With the right POS hardware and software, you can see a return on investment through satisfied customers and efficiency gains.

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The best POS systems for small businesses offer core features and industry-specific tools for improving sales, payments, and inventory processes. Modern cloud-based POS solutions run over the internet, storing information online, whereas on-premise point-of-sale systems keep information on local servers. Both POS options offer all-in-one hardware bundles for retailers and restaurant owners.

Understanding the core functionality of POS systems and knowing which type fits your small business can help you invest in user-friendly, affordable, and scalable tools. Our guide breaks down what to look for, including must-have POS software features for retail stores, restaurants, and service professionals. It explains POS pricing for small business owners, tips for avoiding unexpected costs, and a quick setup guide.

What to look for in POS software for a small business

When buying small business POS software, consider how well it fits your business type and if it’s easy to use and scalable. Affordable POS systems with industry-specific features work out of the box, with floor layouts for restaurants, inventory control features for retailers, and booking integrations for service professionals. Choosing a flexible POS platform allows you to add sales channels, new locations, and hardware without breaking your budget. Here’s what to look for.

Ease of use and training: why user-friendliness matters

A user-friendly POS system helps small teams work faster with fewer errors. Interface design and devices affect how your employees and customers interact with the tools and, ultimately, how satisfying the experience is.

Think about the daily workflows at small businesses. Retail staff benefit from clear, clickable product menus and easy-to-read customer profiles. Restaurant servers need quick access to tables and fixed or custom order options. With an effortless POS interface, small business teams and shoppers can check out quickly with fewer mistakes.

On the other hand, complex menus or clunky navigation slows down employees, and laggy touch screens frustrate users. To ensure your POS hardware and software make everyday tasks smoother, from the sales floor to the back office, test drive several platforms before committing. Run mock transactions, add inventory, and walk through the checkout process.

Look for these user-friendly POS features to streamline checkouts and daily operations:

  • Quick training time: Choose systems with intuitive layouts that new employees can learn in under an hour. It should feel familiar, like using a smartphone, so that most team members can navigate it quickly without having technical skills.
  • User-friendly navigation: Product categories, menus, and payment options should be easy to find, clearly labeled, and well-organized. A good layout means fewer taps or clicks to ring up a sale or issue a refund.
  • Responsive performance: Use POS hardware and integrated payment software to see how it responds to taps and scans during peak hours. Look for solutions that react quickly across all devices, including touch screens and scanners.
  • Mobile device compatibility: Consider cloud-based POS systems that work on tablets and smartphones through browsers or apps. Mobile options let you accept payments on the sales floor or during events.

Integrations: Will it work with your existing software?

POS software delivers more value when it seamlessly integrates with your current tools, saving you time and improving accuracy across accounting, e-commerce, and payroll platforms. For example, POS systems that sync with accounting software like QuickBooks or Xero can automatically transfer daily sales, taxes, and expenses, reducing manual data entry.

Likewise, if you use Shopify or WooCommerce, a POS with real-time e-commerce integration syncs inventory and orders across online and in-store channels, resulting in fewer stockouts and more accurate inventory tracking. Customer relationship management (CRM) integrations connect your POS to HubSpot, Zoho, and customer loyalty programs. You can automatically log purchase histories and sync loyalty data to personalize interactions at the point of sale.

If you employ hourly staff or they handle tips, look for POS systems that integrate with payroll tools. Some even offer built-in time-tracking and attendance features. These solutions automatically transfer tip and wage data for time savings and increased accuracy.

When evaluating POS integrations, ask these key questions:

  • Are core integrations for accounting or e-commerce platforms included or only available on higher-tier plans?
  • Is the POS integration native, based on application programming interfaces (APIs), or via third-party tools like Zapier or Make?
  • Does data sync one or both ways? For example, will updates in your POS automatically show in your CRM?
  • Which data fields transfer for each of my integrations, and is it real-time or batch syncing?

How much does POS software cost?

POS software pricing for small businesses varies widely depending on your business type, required features, and whether hardware is included. Free POS systems offer basic functionality, while full-featured POS platforms range from $49 to over $199 per month. Some vendors offer hardware and software bundles, whereas others only charge payment processing fees. To find the right solution for your budget, see how POS pricing models differ, what costs to expect, and potential add-on fees.

POS software pricing models explained

Most small business POS providers follow a software-as-a-service model, charging a monthly subscription fee. However, pricing structures and tiers vary. Sometimes, a low-cost plan may be more expensive in the long run due to add-on features, users, or transaction volume.

Here are common POS software pricing models:

  • Flat monthly subscriptions: A fixed fee for standard POS service access.
  • Per-register or per-user pricing: Charges for extra employee accounts, devices, or locations.
  • Transaction-based pricing: No base fee, but the vendor takes a percentage of each sale on top of payment processing costs.
  • Custom or quote-based pricing: Tailored plans for larger or multi-location retailers or businesses.

Typical costs for small business POS systems

On average, you can pay around $49 to $129 monthly for small business POS software. Many providers offer discounts for annual payments or bundled hardware plans. The latter may reduce upfront costs but can increase your monthly fees.

Entry-level POS apps include free versions and basic monthly plans priced up to $29. These are great for startups, food trucks, and pop-ups. But they may lack in-depth sales analytics dashboards or integrations. Service businesses like salons or gyms generally pay $39 to $89 monthly, whereas retail and restaurant POS solutions fall on the pricier side, ranging from $59 to well over $199 monthly. These platforms include niche table and inventory management features, time tracking, and advanced analytics.

POS hardware costs can add to the total price. Some vendors offer leasing or financing programs. These may lock you into a long-term contract, have higher interest rates, or early termination fees. Other POS providers work with various tablets and third-party credit card machines.

Prices vary based on features and your business setup:

  • Tablets or registers: $300 to over $2,000.
  • Receipt printer: $100 to $300.
  • Barcode scanner: $50 to $200.
  • Card reader: Free to over $100.

Hidden POS software fees and extra costs

While the advertised low monthly prices can catch your eye, some POS providers tack on fees that increase your total cost of ownership. Before choosing a system, request a detailed cost breakdown and review contract terms.

Here’s what to look for:

  • Payment processing fees: See if the vendor marks up transaction rates, which might occur if you use the provider’s integrated payment processing service.
  • Hardware lease traps: Free devices usually require a contract. Check the terms, interest rates, and what happens if something breaks or doesn’t work out.
  • Cancellation or termination fees: Know what to expect if you exit an agreement (or your business) early.
  • Support or training upgrades: Some POS providers only include basic support and require an add-on or higher tier for onboarding services and premium support.
  • Add-on features: Loyalty programs, gift cards, advanced sales analytics, and e-commerce add-ons may not be included in the base pricing.
  • Other payment-related fees: Find out if your vendor assists with Payment Card Industry (PCI) compliance, chargebacks, and dispute resolutions.

With the right POS hardware and software, you can see a return on investment through satisfied customers and efficiency gains.

Must-have POS software features for small businesses

Your POS software should work out of the box to support your daily operations without dozens of costly add-ons or technical workarounds. The best POS platforms offer industry-specific features tailored to retail, restaurant, or service-based businesses. With the right tools, you can access reports and process payments in fewer steps. Explore essential POS features small business owners should look for when evaluating systems.

Integrated inventory tracking

The best POS systems for small businesses provide real-time inventory management features, which can reduce time spent on manual stock counts and improve cash flow planning. This function should meet the specific needs of your industry, whether using stock-keeping units or tracking perishable items.

Compare these POS inventory management features between vendor solutions:

  • Low-stock level alerts and automatic reorder triggers.
  • Live stock level updates after transactions.
  • Product variants and bundles for sizes, colors, and sets.
  • Support for inventory management processes, like demand forecasting and stock categorization.
  • Purchase order creation from your POS dashboard.
  • Inventory sync across multiple locations and sales channels.

Key reporting and analytics

POS reporting tools and dashboards let small business owners see vital analytics and performance statistics from anywhere with an internet connection. The best software solutions help you visualize your data with interactive dashboards, bar charts, and pie graphs. Look for sales insights and POS analytics that let you compare sales versus staffing levels, view profit margins, and see hourly or daily revenue snapshots.

Basic CRM tools and loyalty programs

Most small business POS systems include basic CRM functionality to track customer profiles, purchase history, and engagement without needing a separate CRM tool. These help personalize your customer service, driving repeat business and distinguishing your brand from competitors.

Consider POS customer engagement and loyalty features, such as:

  • Loyalty programs: Built-in or integrations with loyalty programs can automate reminders for points, discounts, or birthday offers. POS rewards software may be an add-on or upgrade option.
  • Customizable receipts: Messages on receipts, including promo offers and survey links, personalize physical statements.
  • Promotion management: Some vendors offer POS loyalty tools and management options, allowing you to add promos or manage campaigns through your POS dashboard.
  • Gift cards and discount codes: See if the software and hardware let you process gift cards and add promo codes to accounts. Look for role-level security measures that discourage fraud yet allow for quick checkouts.

Small business owner and admin tools

Since your POS platform can control your cash drawer and impact sales figures, secure, accurate, and easy-to-use admin controls are crucial POS features. Consider what functions are available during offline mode and how that affects different sales channels. Look for role-based access and permission settings for employees, allowing you to control who can create or apply discounts, void sales, process returns, and access sensitive data.

As your business grows, you will want tools with multi-location management settings, location-level reporting, and custom tax configuration. Admin controls in POS systems let you sync inventory, pricing, and accounting rules across branches and evaluate performance by site.

POS for online sales and e-commerce

If you sell online and in-store (or plan to), your POS solution should support omnichannel commerce. This type of POS terminal syncs customer information, inventory, and orders in real-time across different channels. It provides tools that help prevent overselling and offer a consistent customer experience.

Look for the following omnichannel POS features:

Employee time tracking and scheduling

Not every small business needs workforce management tools, but these features can benefit hospitality and service companies. A POS with time tracking lets employees clock in and out at the point of sale terminal. With this capability, managers may receive mobile alerts when someone misses a shift, clocks in late, or racks up overtime hours.

A POS system with employee scheduling allows owners to create schedules and assign shifts through POS software. It can eliminate the need for separate scheduling apps and give managers access to labor cost reports, which they can use for real-time decisions and when scheduling.

Industry-specific POS system features

POS features for retail and restaurants address specific pain points of managers, employees, and customers in those industries. If you plan to upgrade from a free POS system, confirm that your vendor supports data migration to avoid losing your settings, sales history, or customer profiles.

Consider the following industry-focused POS features:

  • Restaurants: Table mapping, server assignments (side work), menu modifiers and split checks, kitchen display systems (KDS), and tip tracking.
  • Salons and spas: Appointment scheduling, stylist commission tracking, physical product management, and service management, like time slots or bundled offers
  • Retail stores: Barcode scanning, easy returns and exchanges, gift registries, product variants, item bundling, and labeling tools.
  • Service businesses: Invoicing, digital waivers, and mobile checkout options.

How do you setup POS software

Setting up a POS system is easier than most small business owners expect, especially since many platforms are cloud-based. Basic configurations take one to three hours, whereas multi-location setups require a few days. If you purchase a POS that works with standard tablets and Bluetooth accessories, then you can log in and start setting up. On the other hand, vendor-specific hardware and larger sites with multiple POS stations will need additional time to place and connect components.

Here’s a simple step-by-step process for setting up your POS software:

  • Install the POS app or software. After creating your account and choosing your plan, download the POS app to your smartphone, tablet, or desktop.
  • Connect POS hardware. Follow on-screen instructions from your vendor to add a cash drawer, EMV (Europay, Mastercard, and Visa) card reader, receipt printer, and barcode scanner.
  • Customize your settings. Configure user roles, product inventory or menu options, and tax rates from the admin panel.
  • Test it out. Run test transactions to see if your software and hardware processes sales and payments correctly.
  • Train employees. POS software may have a demo mode for practice sessions with built-in tutorials to speed up training.

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