Point of Sale software for retail: simplify sales and inventory

Published Thursday 25 September 2025

Table of contents

• What is retail POS software?
• Key features that benefit retail businesses
• A good POS system is crucial in retail
• Get more control of your business with online retail POS
• Take the checkout to your customers with mobile POS
• Make your employees better at sales
• Give customers peace of mind
• Simplify inventory management
• Understand your customers and increase sales
• FAQs on retail POS software
• Start using Xero for free

Key takeaways

• Implement a cloud-based POS system that integrates with your accounting software to automate bookkeeping, sync sales data, and eliminate manual errors while providing real-time business insights from anywhere.
• Utilise mobile POS technology to transform tablets or smartphones into portable checkout systems, allowing staff to serve customers anywhere in-store and eliminate traditional checkout queues.
• Leverage inventory management features to automatically track stock levels, identify best and worst sellers, and use data-driven insights to prevent costly overstocking or understocking situations.
• Apply customer relationship management integration to access purchase history, preferences, and spending patterns instantly, enabling personalised service and targeted marketing that increases sales and customer retention.

What is retail POS software?

A point of sale (POS) system is the modern version of a cash register. It’s the central hub where you manage sales, accept payments from customers, and track your business performance. You can use POS software in your store, online, or on a tablet for selling on the go.

Good POS software simplifies these tasks so you spend less time on admin and more time with your customers.

Key features that benefit retail businesses

A modern POS system does more than just process sales. It brings together different parts of your business to help you work smarter. Key features often include:

• processing payments for credit cards, debit cards, and digital wallets
• tracking stock levels automatically with inventory management
• reporting on sales to show what’s selling and when
• managing customer loyalty and purchase history
• monitoring employee performance and permissions

A good POS system is crucial in retail

Point-of-sale (POS) systems are software platforms that handle transactions and manage retail operations in one place. They replace traditional cash registers with smart technology that does much more than process payments.

A good POS system prevents customer frustration from slow checkouts and manual data entry. A good POS system can transform your business by:

• Inventory management: Shows what's selling and what's not
• Profitability insights: Reveals which product lines make you money
• Customer intelligence: Highlights buying habits and preferences, with research showing that 22 per cent of businesses using AI report improved decision making.
• Mobile sales: Gives employees a digital product catalogue anywhere in-store

If you sell products, a good POS system helps you run your business more efficiently.

Get more control of your business with online retail POS

Cloud-based retail POS systems now give small businesses access to powerful tools once only available to large chains.

With options like the instant asset write-off for eligible assets, these systems are more affordable than ever.

Modern cloud advantages:

• learn quickly with user-friendly interfaces
• access your business data from anywhere
• scale your system as your business grows
• get instant insights into sales, inventory, and customer data

Integrated business management eliminates costly mistakes:

• track inventory automatically to prevent errors
• use data-driven insights to understand your customers
• connect your systems to save time and reduce errors

If you use separate systems or manual processes, cloud-based POS software can help you run your retail business more efficiently.

Take the checkout to your customers with mobile POS

Mobile POS transforms any tablet or smartphone into a portable checkout system that brings payment processing directly to your customers.

Traditional retail models require customers to queue at fixed checkout counters. Mobile POS lets you serve customers anywhere in your store:

• Instant service: Employees approach customers anywhere in-store
• Faster decisions: Help customers while they're considering purchases
• Immediate payment: Process cards and email receipts on the spot
• Seamless integration: Connects with your accounting software automatically

You remove checkout queues and create a more personalised shopping experience.

Make your employees better at sales

Employee empowerment through POS systems turns your staff into confident sales professionals by putting product expertise at their fingertips.

POS software gives your employees instant access to product details, so they can answer customer questions confidently:

• Product information: Detailed specifications and features
• Cross-selling opportunities: Related items and bundles
• Upselling suggestions: Higher-value alternatives
• Sales tips: Proven talking points for each product

Performance tracking helps you support your team better:

• identify your top salespeople for bonuses
• spot employees who need extra support
• see how better product knowledge increases sales

You get more confident employees, higher conversion rates, and more revenue per customer.

Give customers peace of mind

You can reassure customers by using POS software that hides the app selection screen, making the tablet look like a single-purpose sales device.

Choose a system that protects your customers’ trust by securely encrypting their data. Choose a system that securely encrypts customer and bank data, especially as software designed to suppress sales records is illegal to possess or use in Australia.

Simplify inventory management

Inventory management through POS systems prevents costly overstocking and understocking that can drain your cash flow.

Smart stock insights help you make data-driven decisions:

• Best and worst sellers: Identify which products move fastest
• Seasonal patterns: Track what sells when throughout the year
• Price sensitivity: See how price changes affect sales volume
• Optimal timing: Know when and how much stock to reorder

Accounting integration provides deeper financial insights:

• Product profitability: See which lines make the most money
• Price optimisation: Find the sweet spot between volume and profit
• Cash flow planning: Time purchases based on actual sales data

You keep popular items in stock and invest in products that sell well.

Understand your customers and increase sales

Customer relationship management (CRM) integration connects your POS system to detailed customer profiles, enabling personalised service and targeted marketing.

Instant customer insights transform every interaction:

• Purchase history: See everything they've bought before
• Preferences: Know their favourite products and brands
• Special dates: Track birthdays and important occasions
• Spending patterns: Understand their buying behaviour

Revenue growth opportunities:

• Loyalty programs: Reward repeat customers automatically
• Targeted promotions: Send relevant offers based on past purchases
• Upselling success: Recommend products they're likely to buy
• Customer retention: Keep existing customers happy (much cheaper than finding new ones)

This integrated approach helps you increase sales and build long-term relationships with a customer relationship management (CRM) system.

FAQs on retail POS software

Here are answers to some common questions about retail POS software.

What is the difference between POS software and a POS system?

A POS system includes both the hardware (like a scanner or tablet) and the software. The POS software is the program that runs on the hardware to manage sales, inventory, and customer data. You can often use new software on hardware you already own.

Can I connect my POS software to my accounting software?

Yes, many POS software options integrate directly with accounting software like Xero. This connection automates your bookkeeping by syncing sales data, which saves you time and reduces manual errors.

Is Xero a POS system?

Xero is not a POS system, but it integrates with many leading POS apps. This allows you to connect your sales data directly to your financial records for seamless reconciliation and a real-time view of your business performance.