What is Cashier Software?

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  • Written By: Carol Francois
  • Edited By: Heather Bailey
  • Last Modified Date: 14 October 2019
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Cashier software is also known as point of sale, or POS, software. This type of software is built into almost every modern cash register in use today. Cashier software is a growing product in the software market, as the programs have expanded from simple calculation functionality to database driven data collection systems.

This product has evolved over time, and there are now three functions included in most cashier software: calculation, inventory tracking, and sales analysis. Cashier software is now used for both traditional and online sales transactions. An integrated system for both types of stores provides enhanced tracking and the ability to evaluate customer behavior and preference.

The calculation aspect of this type of software is well known. There are two input methods for the unit price of each commodity: data entry or automatic update via bar code scanning. Data entry occurs when the cashier types in the price for each item; this process has decreased substantially since the mid 1980s.


Bar code scanning is widely used, as it reduces the error rate significantly and allows the stores to track more information. When a product is added to store inventory, the bar code is entered into the primary cashier software, along with the unit price, category, supplier, and item description. When the product is purchased, it is scanned and the price and description are automatically printed on the receipt. The receipt provides the item description for the customer, along with the savings, if the item is on sale.

Internet or web based sales are a customer initiated process. The customer selects the products that he or she wants to purchase and adds them to the online shopping cart. Once payment is processed, the inventory levels decrease to reflect the sale. In addition to the basic information, online sales all require the customer address and payment method. This information is used for data analysis and review.

Inventory records are updated based on the number of units sold, providing accurate tracking and the ability to closely integrate reorder points and manage stock levels accurately. When a new shipment is received, the loading dock scans the product bar code and indicates the quantity received. Regular inventory checking confirms the stock on hand and provides a control to evaluate the quantity of shrinkage the business is experiencing.

Based on the data collected by the software, the store can now complete sales and activity analysis. Sales analysis can be used to determine customer response to new product offerings and sale prices, as well as the sale of competing and complementary products. Store staffing levels can also be modified to match peak times and minimize overhead costs.


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