A quick-start guide to understanding your cash register

The iconic cha-ching is a sound that retailers and shoppers all know well: A sale has just been made. From the very first cash register in 1879 with its literal bells and whistles to now, the cash register is a symbol of retail business. 

These days, people can record payments and handle cash with registers that track transactions digitally. Cash registers have evolved into important pieces of technology that do more than just announce each sale. Let’s dive into what modern-day cash registers can do and how you can get started using one like a pro.

What are the fundamental uses of a cash register?

Cash registers are a must-have in any retail environment. At their most fundamental, they serve the following needs.

• Processing sales: A cash register’s main job is calculating sales and taking payments.
• Generating receipts: Cash registers also provide proof of purchase to customers.
• Storing and tracking cash: They keep money securely stored and organized.
• Voiding sales or facilitating returns: Cash registers can cancel a transaction or process a refund for a returned item.
• Calculating taxes: They automatically calculate sales taxes based on tax rates. 

What are the more advanced uses of a cash register?

Cash registers today can do so much more. Not only can they help with everything we listed above, they can also do these tasks.

• Inventory management: Advanced cash registers can track and update stock levels in real time.
• Customer relationship management: Some cash registers can store customer data and purchase histories, allowing you to better understand your shoppers. 
• Employee management: When it comes to evaluating employee performance or commissions, advanced cash registers can track sales by individual employee. 
• Data tracking and analysis: Advanced POS systems offer detailed analytics and reporting capabilities that help drive more strategic decisions.

Different types of cash registers

Cash registers may come in various forms and shapes, but ultimately, they play the same role and work in a similar way. However, it’s a good idea for retailers to understand the various types of cash registers so they can choose the best one for their business. There are four types to keep in mind.

Electronic cash register

Electronic cash registers, also known as ECRs, were the default options for cash registers for decades. In every boutique and every convenience store, you could catch the familiar sight of these pieces of hardware. ECRs are fairly bare-bones: They don’t connect to the internet or to your e-commerce backend. They don’t examine inventory or suggest when you should restock items. 

Like a calculator, it calculates payments, adds tax, and then prints out a receipt. Simple at its core, it comes with a cash drawer, a keypad, a monochrome screen, and a small printer. Though you still might see ECRs here and there, most retailers are upgrading to more powerful, more efficient machines. 

Point-of-sale cash register

Nowadays, you’ll notice that point-of-sale cash registers, or POS cash registers, are ubiquitous. Unlike the ECR, they’re a blend of hardware and software. Yes, they can calculate payments, but that’s only one of their features. The integration of software means a POS cash register can also manage your inventory, produce revenue reports, track customer loyalty programs, and even set up profiles for staff members to monitor their sales performance. 

Many businesses are using POS registers to get more work done faster and scale up their operations.

Mobile cash register

Think of a mobile cash register as a miniature version of the POS cash register. It encompasses the same level of functionality as a point-of-sale cash register, but its powers aren’t confined to a countertop. A mobile POS can go where you go and enable transactions regardless of whether you’re behind a sales counter or at a trunk show. They do this with contactless payment features like Tap to Pay. 

You’ll often see these in non-permanent sales spaces like a county fair or a pop-up or even just a street vendor. However, retailers might still use mobile POS in their brick-and-mortar to cut down on lines of people at checkout. 

Cloud-based register

If ECRs are the past, and POS and mobile POS are the present, consider cloud-based registers the future. While all the other registers we’ve mentioned rely on some type of hardware element, be it a cash drawer or a terminal, cloud registers transcend hardware entirely and just exist online. 

Every sale you ring up is stored on the cloud, and information can be synchronized across multiple devices. This means you can be more nimble and more informed as you go about making the hundreds of real-time decisions you must make each day to keep your business running smoothly. A cloud-based register can be accessed anywhere there’s a reliable internet connection. 

How to use a cash register

Getting started with a cash register will depend on the type of cash register you choose for your business. For cloud-based registers and POS systems, the start-up process can vary widely but can be as simple as booting up your device, logging in, and launching the software. 

Here are the most basic moves to follow when operating a traditional cash register. Keep in mind these instructions could apply to more advanced systems as well.

1. Prep the cash register: Make sure paper is in the receipt printer and load additional ink if it’s low to avoid faded receipts. Also make sure the cash in the drawers is properly organized by denomination. This not only speeds up the process of giving change but also helps in minimizing errors during transactions.
2. Launch a transaction: There will likely be a “sale” or a “new” button to press, and then you can start ringing up the individual items by either scanning them with a barcode reader or entering their item code or SKU. Remember to carefully enter the quantities of each item, especially in scenarios where multiple units of the same item are being purchased.
3. Add discounts: Registers have dedicated buttons for sales items or coupon items that can automatically apply discounts. In some cases, you might need to manually enter discount amounts. Either way, be sure to account for discounts correctly so you can avoid discrepancies in your sales records.
4. Complete the transaction: Collect payment for the full amount whether it’s through a credit card, cash, or a gift card. If a customer pays in cash, you’ll have the option to calculate the amount of change due. Always count back the change to the customer to avoid mistakes.
5. Provide a receipt: Once the payment clears and the transaction is processed, print out an itemized receipt that details the transaction. However, if your system supports paperless transactions, offer customers the option to receive a receipt via email or text. 

Cash registers today are so much more than the simple devices they started out as. By choosing the right type of cash register for your business and understanding the different functions of each, you can make selling and buying much easier in your retail shop. That means smoother sales, happier customer customers, and more cha-ching. 

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