If you’re searching for the term “cloud based POS system”, you’re likely looking for solutions that can boost efficiency, scale with your business, and easily integrate with other tools you use. This article will walk you through everything you need to know about cloud-based POS systems:
- Starting with what a cloud-based POS system is;
- To how they can benefit your business;
- And top 5 cloud based POS systems right now.
Let’s jump in and explore your options together.
What Is a Cloud-Based POS System?
A cloud-based POS system is a point-of-sale solution that runs online, storing your business data on remote servers instead of on local hardware. Unlike traditional systems, which require physical servers on-site, a cloud-based setup lets you manage sales, track inventory, and access real-time business data from anywhere with an internet connection.
These systems are typically made up of a few key components:
- POS software: The application that runs on devices like tablets or computers to manage sales and transactions.
- Cloud storage: All your data, like sales history and customer details, is stored securely online, so you don’t need bulky hardware or manual backups.
- Internet connectivity: You’ll need an internet connection to access the cloud and keep everything running smoothly.
With a cloud-based POS, you can log in from any device, wherever you are, giving you the flexibility to stay on top of your business operations even when you’re on the go. This makes it an ideal choice for businesses with multiple locations or those looking for a more convenient way to manage transactions.
So, what's the key differences between cloud-based and traditional POS systems? When comparing cloud-based and traditional POS systems, the differences are pretty clear, and knowing them can help you decide which is best for your business.
The table below can highlight all simple and basic terms and comparisons between the two solutions.
Aspect | Cloud-based POS | Traditional POS |
Data storage | Stored in the cloud | Stored locally |
Accessibility | Accessible from any location | Accessible only on-site |
Maintenance | Automatic updates | Manual updates needed |
Hardware requirements | Minimal hardware, often mobile | Requires on-site hardware |
Backup and recovery | Automatic backups and data recovery | Manual backup processes required |
Top 5 Cloud-Based POS Systems for Different Business Types
When it comes to choosing the perfect cloud-based POS system, it's important to remember that one size doesn't fit all. Every business has its own unique needs, so it's crucial to find a system that caters to those specific requirements. In this section, LitExtension will provide an overview of some best cloud-based POS systems designed for different types of businesses, helping you to make a well-informed decision.
1. Square POS: Best overall POS system
Square POS is a flexible and user-friendly option that works well for many types of businesses, from retail shops to cafes. It offers a wide range of features at affordable prices, making it a great all-around choice.
With Square POS, you can start with a free plan and just pay a small transaction fee of 2.6% + $0.10 for in-person transactions and 2.9% + $0.30 for online transactions. If you want to go all out, there are advanced plans like Retail Plus for $89/month and Restaurant Essentials starting at $153/month, plus some hardware fees.
Pros:
- Easy to set up and navigate.
- No monthly fees for basic features.
- Integrates seamlessly with other business software.
- Includes robust reporting tools.
Cons:
- Advanced features may not suit larger businesses.
- Transaction fees can be higher than some alternatives.
- Hardware costs can increase if you need multiple devices.
- Limited support for complex inventory needs.
My tips for you:
- Test the Square basic plan before committing to advanced features.
- Connect Square with your accounting or eCommerce tools for seamless operations.
- Use Square’s analytics to track sales trends and optimize your strategy.
2. Shopify POS: Best for eCommerce
If you have both an online and physical store, Shopify POS is a great option for you. It combines Shopify’s amazing online selling features with in-store capabilities so you can have the best of both.
You can get started with Shopify POS for as low as $5 per month (Starter plan) and go up to $399 per month (Advanced plan). Transaction fees vary by plan, but they're usually around 2.9% + $0.30. If you need POS Pro, it costs $89 per month per location.
Pros:
- Ideal for merging online and in-store sales.
- Provides real-time inventory management across channels.
- Strong customer support is available.
- Easily integrates with Shopify’s platform.
Cons:
- Advanced features come with higher fees.
- Some features may require additional apps or plugins.
- Hardware options can be pricey.
- Requires a stable internet connection for optimal performance.
My tips for you:
- Manage online and physical sales in one platform for a consistent customer experience.
- Shopify’s app store has options to tailor your POS to your specific needs.
- Shopify’s hardware is designed to work seamlessly with its software, so it’s often worth the investment.
3. Toast POS: Best for restaurants
Toast POS is specifically built for food and beverage businesses, offering tailored features like menu management, kitchen displays, and table tracking, which are essential for restaurants, cafes, and quick-service places.
Toast POS offers a Quick Start Bundle starting at just $69/month (Core Plan). If you want to grow, the Growth Plan is available for $165/month, with processing fees set to increase from September 2024.
Pros:
- Customizable features designed for restaurant operations.
- Integrates with kitchen and delivery services for efficiency.
- Supports multi-location management.
- Offers customizable hardware options.
Cons:
- Subscription plans can be costly for smaller businesses.
- Heavily dependent on internet connectivity.
- Complex hardware setups may be challenging for small operations.
- Not ideal for non-food businesses.
My tips for you:
- Use Toast’s menu features to update items, manage specials, and track what sells best.
- Streamline delivery orders by integrating with services like DoorDash and Uber Eats directly through the system.
- Use the table management feature to maximize seating efficiency and improve customer turnover rates.
4. Clover POS: Best for retail
Clover POS is perfect for retailers looking for a customizable and scalable POS solution. With a wide range of hardware and software options, Clover can be adapted to fit various retail needs.
Clover POS starts at $14.95/month for basic plans, with retail and restaurant packages from $60/month to $165/month. Transaction fees range between 2.3% + $0.10 and 2.6% + $0.10.
Pros:
- Highly customizable with numerous hardware choices.
- Integrates well with business apps and payment gateways.
- Scalable for growing retail stores.
- Offers extensive support and training resources.
Cons:
- Advanced features and add-ons can increase costs.
- Monthly fees may grow depending on chosen features.
- The interface may not be user-friendly for everyone.
- Less suitable for non-retail businesses.
My tips for you:
- Clover’s app marketplace offers numerous options to tailor the system to your store’s specific needs.
- Use the built-in reporting tools to track performance and adjust your product offerings based on sales data.
- Invest in hardware that can be expanded as your business grows so you can add more devices without hassle.
5. Helcim POS: Best for professional services
Helcim POS is designed for service-based businesses like salons, gyms, and consulting firms. It offers transparent pricing and low fees, making it a cost-effective choice for businesses that handle appointments and bookings.
Helcim POS offers flexible pricing with low transaction fees. Specific monthly rates depend on the services used, making it ideal for high-volume businesses looking for competitive fees.
Pros:
- Transparent, no-surprise pricing.
- Low transaction fees, perfect for high-volume businesses.
- Excellent support for appointment-based services.
- Accessible from any device for flexibility.
Cons:
- Limited functionality for retail or restaurant operations.
- Basic inventory management capabilities.
- May not suit businesses with complex eCommerce needs.
- Setup may require technical support for full customization.
My tips for you:
- Take advantage of Helcim’s scheduling tools to manage client bookings and reduce no-shows.
- Monitor transaction volumes and compare pricing plans to ensure you’re getting the most cost-effective setup.
- Use the cloud access feature to manage appointments and business data from any location, making it easier to oversee operations on the go.
Key Benefits & Features of a Cloud Based POS System
Cloud-based POS systems offer a range of benefits that make them a smart choice for modern businesses.
1. Real-time access from anywhere
One of the biggest perks of a cloud-based POS is that you can access your data anytime, anywhere. Whether you’re managing multiple locations or keeping an eye on your business from home, having everything available in real-time means you can respond quickly and make informed decisions on the go.
2. Integration with other business systems
Cloud-based POS systems are designed to work seamlessly with other tools you already use, like accounting software, CRM systems, and eCommerce platforms. For example:
- Accounting integration: Automatically sync sales data with accounting software like QuickBooks, reducing manual data entry and improving accuracy.
- Ecommerce integration: Connect with platforms like Shopify or WooCommerce to manage both online and offline sales in one place.
- CRM integration: Track customer behavior and preferences, enabling personalized marketing and improved customer service.
As you can see, these integrations simplify workflows and keeps all your business information connected, so you can manage everything in one place without jumping between systems.
3. Cost efficiency and savings
Traditional POS systems can be costly upfront, requiring servers and other hardware. With cloud-based systems, you can run everything on basic devices like tablets, helping you save on hardware expenses right from the start.
Most cloud POS systems work on a subscription basis, which spreads out your costs over time rather than requiring a big upfront payment. This makes it easier to budget, and you can choose plans that fit your needs and grow with your business.
4. Enhanced security and data protection
Security is always a concern, especially when dealing with customer payments and sensitive data. Cloud-based POS systems use advanced encryption and follow strict security protocols to keep your data safe. POS system providers also handle regular updates to make sure your system stays secure and compliant.
In addition to encryption, cloud-based systems typically offer:
- Automatic software updates that address potential security vulnerabilities.
- User access controls that allow business owners to restrict access based on roles and responsibilities.
5. Automatic backups and data recovery
With cloud-based systems, you don’t have to worry about manual backups or losing data. Everything is automatically backed up and stored securely in the cloud, so if something goes wrong, your data is safe and can be recovered quickly, minimizing downtime and keeping your business running smoothly.
Choosing the Right Cloud Based POS System for Your Business
Picking the best cloud-based POS system for your business can feel overwhelming with so many options out there. But don’t worry! Finding the right fit comes down to understanding your specific needs, budget, and goals. Here’s a guide to help you make a confident decision.
1. Understanding business needs
The first step is to figure out what your business specifically requires. For example, retail stores might prioritize inventory tracking, while restaurants might focus on menu and table management features. You should choose a system that’s right for your industry to get the most out of it.
If you handle a high volume of transactions, you should also make sure your POS can keep up without slowing down during peak hours. Finally, if you’re planning to expand, look for a scalable POS that can easily grow with your business, whether that’s adding new locations or terminals.
2. Evaluating features and functionalities
Not all POS systems are created equal, so it’s important to focus on the features that matter most for your business. First, you need to make sure the system offers basics like inventory management, sales tracking, and customer management tools.
If you have specific requirements, let’s go for systems that allow you to add or customize features through apps and integrations. A POS with built-in analytics can provide valuable insights into your sales, customer behavior, and employee performance, helping you make better business decisions.
3. Budget considerations and pricing models
Different POS systems come with various pricing options. Between subscription vs one-time payments, which might be the best fit for you? Most cloud POS systems work on a subscription basis that allows for monthly or annual payments. This spreads costs over time, but it’s important to compare plans to find one that fits your budget and needs.
But let’s be mindful of additional costs like hardware, transaction fees, and setup charges. For instance, some systems might require specialized devices, while others work with basic tablets, which can save money.
4. Security and compliance standards
Security is a must when dealing with customer and business data so we will summarize what you should focus on:
- Ensure the provider uses strong encryption and security measures to protect your information.
- Check if the POS system complies with PCI-DSS (Payment Card Industry Data Security Standard) to ensure your business meets required regulations for handling payments.
- It’s important that the POS allows you to set permissions based on employee roles, so only the right people have access to sensitive data.
Cloud Based POS System: FAQs
A cloud-based POS system is like a virtual cash register that runs on the internet. Instead of storing data on your computer, it saves everything on remote servers. It's pretty cool because it gives you real-time access, updates itself automatically, and can connect with other business tools.
A cloud POS is a system that operates using cloud technology, storing data on remote servers accessible over the internet. In contrast, a traditional POS system stores data locally on in-house servers or computers. Cloud POS systems are typically more flexible, scalable, and easier to update, while traditional POS systems might offer more control but require more maintenance.
Cloud-based POS systems provide greater flexibility, accessibility, and scalability. They require less hardware, offer automatic software updates, and allow business owners to manage operations from anywhere, improving efficiency and reducing costs compared to traditional systems.
Yes, internet connectivity is crucial for cloud POS systems, as they rely on cloud servers to process transactions, store data, and manage updates. However, many providers offer offline modes that allow the system to continue processing transactions when the internet is down. Then, the system syncs data once the connection is restored to ensure business continuity.
Cloud-based POS stores data online on remote servers accessible via the Internet, while server-based POS stores data on local, in-house servers. Cloud-based systems offer more mobility and automatic updates, whereas server-based systems require manual maintenance and updates.
Cloud POS is a full online system, accessible from multiple devices. mPOS (mobile POS) specifically uses mobile devices like tablets or smartphones to process payments, often integrating with cloud POS software for added flexibility and portability.
Is a Cloud Based POS System Right for Your Business?
A cloud based POS system offers a lot of advantages for businesses looking to streamline operations and boost efficiency. With features like real-time access, scalability, and easy integration with other software, they’re a great fit for many businesses, from retail to restaurants and service providers.
But, before you make the switch, it’s important to weigh these benefits against potential downsides, such as the need for a stable internet connection and ongoing subscription costs. Understanding these factors will help you determine if a cloud-based POS is the best fit for your specific needs.
Here are my final recommendations for you:
- For retailers looking for flexibility and customization, I recommend checking out Clover POS, it's a great option!
- If you're in the restaurant business and need specialized tools like kitchen integration, Toast POS is a top pick.
- Ecommerce businesses, you'll love Shopify POS, it's perfect for managing both online and in-store sales.
- And for service-based businesses, I highly recommend Helcim POS, it offers transparent pricing and appointment management tools tailored to your needs.
Ultimately, the perfect cloud-based POS system for you will really depend on what kind of business you have, your budget, and your growth plans.
We hope you found this article insightful and now have a clear understanding of a cloud based POS system. For more content like this, be sure to visit the LitExtension blog and join our eCommerce community to gain further insights and connect with fellow business owners.
