POS Systems and Profitability

Can your POS system determine whether your business is profitable? A point-of-sale (POS) system is a hardware and software device that calculates sales and processes payments for both large and brick and mortar businesses. POS systems offer add-on modules that report sales, track inventory, and streamline employee performance. While POS systems certainly calculate and record sales, they do not determine whether a business is profitable or not.


You may be familiar with the popular players of the POS world like Square, Clover, Toast, Stripe, and Shopify. Your business may even utilize one of the systems just mentioned. Although POS systems like these are helpful in daily operations, businesses must focus efforts towards tracking their profitability. Since profitability is the greatest predictor of a businesses overall success, it is imperative that all business owners understand the profitability of their business. If owners aren’t aware of the profitability of their business, they may not have the necessary knowledge needed to plan ahead, delegate costs, and budget resourcefully.

Final Takeaway

Though POS systems like the ones mentioned above are excellent solutions for small businesses, they do not determine whether a business is profitable. Remember POS systems simply manage sales and cannot determine a businesses profitability.