Tis the season for Tax Deductions!

OK - So I am no way a tax expert so be sure to validate this information with your tax professional. I do have experience as a business manager as well as a degree that included 300 and 400 level accounting and finance course work).

For the last 20+ years, I am always asked about deducting point of sale system expenses from your taxes as an expense.  For most retailers, the answer is yes - an outright purchase of point of sale hardware and software can qualify as a deduction. The requirements are that the hardware is being used in the business and not for personal use.

Some gray areas include if you can deduct point of sale hardware that you are leasing as well as point of sale software that you pay a monthly subscription on.

At any rate, if you have not used up your computer hardware deductions for 2020, now is a great time to look at investing in a new POS system. At this point, you should expect that you will pay for the point of sale system now but not have the new system installed until 2021.   

One last thought - don't wait until the last week in December to try and purchase a new point of sale system for tax purposes - I've had lots of folks call me on December 31st and generally it's too late with most staff (and most companies) closing early on New Years Eve. A good deadline (depending on what you need) is having everything finalized by Dec 15th, 2020. This allows time to process payments and get you that much needed invoice/receipt showing that the POS system was paid for in 2020.

Thoughts, comments and suggestions on the above are welcomed! You can reach me at kevinantosh@gmail.com or 208-340-5632.  

Fall Promotion

As we wind our way through the end of 2019, I wanted to pass along the following promotion valid through November 15th, 2019:

My hourly rate is waived for all on-site consulting services.  All you pay is actual travel expenses for on-site point of sale consulting at your business location.

This offer is valid for contracts signed by November 15th, 2019 and only available to retailers located in the United States. Maximum on-site time is limited to 6 hours a day for up to 5 consecutive business days. Actual travel expenses include airfare, rental car, food per diam, fuel and lodging.

Please contact me at 208-340-5632 or kevinantosh@gmail.com for more information.

Updates on Microsoft RMS Store Operations, One Step Retail Solutions, NCR Silver, Big Hairy Dog, and Spark Systems Solutions

A quick reminder that sales of Microsoft Dynamics RMS and HQ to new users as well as mainstream support ends next year (2016) so please keep that in mind if you are thinking of purchasing RMS or HQ as point of sale software for your business or organization.

A few updates for previous DirectPOS customers as well as all users of Microsoft RMS Store Operations and Store Operations HQ.

It appears that Spark Systems Solutions has delayed establishing an office presence in the Boise, ID and Spokane, WA area. They do have technicians working from home in each city so there is still full local support for current and future Micro's users (but no showroom to see the different types of systems).  I will pass along address information once I hear that they have established an office presence in Boise and Spokane. In the meantime, you can reach them via phone at (801) 486-2151 (also known as Cowans Restaurant Solutions - Salt Lake City, UT).

Ada Cash Register continues to provide sales, service, and programming for Samsung cash registers as well as supplies for cash registers and computer based point of sale systems. You can reach Ada Cash Register at 208-407-2202.

RITE has started their expansion westward and will be offering multiple retail point of sale systems in the states of ID, OR, WA, UT, MT, NV, and WY with a special focus on the Boise, ID, Spokane, WA and Salt Lake City, UT markets.

I've had a few calls and email about NCR Silver - especially since I was previously able to offer significantly discounted pricing for NCR Silver. As I am no longer able to offer the discounted pricing, you can contact NCR Silver directly at 877-630-9711 or visit http://ncrsilver.com/ for more information.

It appears that One Step Retail Solutions out of Phoenix, AZ is only interested in supporting NCR CounterPoint customers (based on calls and emails received). They will support RMS and RMS HQ customers - but for a fee.  Present Microsoft RMS, RMS HQ, and Microsoft POS 2007/2009 customers can contact Microsoft directly at 888-477-7877 for support (free, if you are current on your software maintenance) or to be referred to a different Microsoft RMS/POS/HQ partner.

Finally, things have been very quiet at Microsoft regarding the future plans for RMS/HQ/POS 2007/2009.  There are rumors that the software is being "abandoned" but no official word has been communicated (one way or the other) from Microsoft.  If you currently use any of the Microsoft point of sale products, then you may want to just start thinking about looking at a different solution like Retail Pro.  I know several single and multi-location retail stores that use Retail Pro. A good source for Retail Pro is Big Hairy Dog.

I've known Big Hairy Dog for 10+ years and they are committed to providing affordable point of sale solutions along with great customer service.  They are located in Sacramento, CA and can be reached at 800-377-7776. You can also go to their website at http://www.bighairydog.com/ (there is a history behind the funny name but they are a true 'survivor' as a retail point of sale solution provider).

Long post - I'll wrap things up by saying that I wish that One Step Retail Solutions and Spark System Solutions/Cowans Restaurant Solutions would have been more honest about their plans which would have made it easier to communicate to my former customer base.

Are you in the US and in need of no cost retail point of sale advice? I'm happy to help and can be reached on my cell at 208-340-5632 (mountain time) or via email at kevinantosh@gmail.com.

A Couple of Shout Outs

A big shout out to The Peregrine Fund/World Center for Birds of Prey in Boise Idaho (http://www.peregrinefund.org/world-center) and Zion Human History Museum in Utah (http://www.nps.gov/zion/historyculture/zion-human-history-museum.htm). Both of these organizations recently upgraded from my Microsoft RMS Store Operations solution to my NCR CounterPoint for Museums solution. Check out their websites if your travels take you to Boise Idaho or Southern Utah and give me a call if your museum is searching for a technology solution to track sales, membership, admission, or similar information - 208-340-5632.

The main reason for upgrading was that both organizations had outgrown the Microsoft RMS system and were searching for a system that could handle integrated online sales, better membership/donor marketing and tracking,  and use of the system on smart phones or tablets during peak visitor times like when exhibits are changed out.

NCR CounterPoint is unique it its ability to start as a basic point of sale system and then expand with your organizations needs to perform more advanced functions.

The cost justification comes from both labor cost savings and allowing your volunteers/staff to spend more time with the guests or performing revenue generating activities.

If you think about it - just one paid labor hour saved each day equates to a savings of around $4,000 annually.  More than enough to justify investing in new or upgraded technology for your organization.

Tuesday Tips – Reprinting Receipts

It happens from time to time – a freshly printed customer receipt is eaten by the receipt printer, ruined by a spilled beverage, or somehow damaged. Once great thing about point of sale systems is that you can quickly reprint your most recent customer receipt.

Microsoft RMS Store Operations users can press “Shift” plus “F11” from the point of sale screen to reprint the most recent receipt (no screen shots this week as these instructions are pretty self explanatory).

NCR CounterPoint users can have a reprint button added to the point of sale screen – simply click or press the reprint button to print the most recent receipt.

Are you in the US and in need of no cost retail point of sale advice? I'm happy to help and can be reached on my cell at 208-340-5632 (mountain time) or via email at kevinantosh@gmail.com.

New Credit Card Malware: vSkimmer

Many of you have probably hear about the Dexter Malware from last fall that was designed to capture credit card information as each card was swiped. A new malware program was just discovered by the folks at McAfee and has been named vSkimmer.

vSkimmer appears to be more advanced that Dexter since it gathers general computer information and then uses the internet to capture and send credit card information. vSkimmer is designed to capture date from track 2 on a credit card swipe.

What should you do?

1. Make sure that your anti-virus and anti-malware is set to be updated as updates become available and that you are current on your update subscriptions.
2. Ensure that virus and malware scans are being done on a daily basis.
3. Check all of your firewall settings.
4. Backup your computer information daily and backup to an off-site location or to a removable device like a flash drive.

Credit card malware like Dexter and vSkimmer can also be hindered by using credit card swipes that encrypt the data as the card is swiped. Currently, NCR CounterPoint supports encryption right within the credit card swipe with the correct hardware.

The programmers behind vSkimmer have made threats that 2013 will be a big year for ways to obtain credit card information.

Unsure if your credit card swipe can encrypt data? Contact your point of sale provider as there is an easy way to test this (I'm not posting this online for security reasons).

Are you in the US and in need of no cost retail point of sale advice? I'm happy to help and can be reached on my cell at 208-340-5632 (mountain time) or via email at kevinantosh@gmail.com.

Does Your Point of Sale Provider Have 'Real World' Experience?

On a fairly regular basis, I travel to speak at specialty retail related conferences and expos. One thing I like to do is compare notes with other point of sale vendors and suppliers who are also at the conference or expo. Usually, I find out that the other companies have very qualified technicians and skilled salespeople but they don't have staff that has actual retail, restaurant or bar experience.

I feel strongly that anyone who provides cash registers or computer-based point of sale systems needs to have 'real world' experience. If they have never "walked in your shoes', how can they understand what you solution you need. It also shows when working with support/technical staff - they have a vested interest in helping make your business more successful.

End point: When searching for a point of sale system for your business, ask the vendors how much experience their staff has working in actual retail and hospitality environments.

Traveling

Just a quick note that if you reside in Eastern Idaho, Western Wyoming, Eastern Idaho, or Northern Utah, I will be traveling to your area over the next ~4 weeks.  You can reach me at 208-340-5632 if you would like to schedule an appointment for us to have a (non-sales related) conversation about your business.

EMV Update

EMV update: it appears that October of 2015 will be the date when EMV will be fully implemented in the US - I will keep you updated as software and hardware requirements become available. In the meantime, be sure to stay current on your annual software maintenance so you are eligible for any revisions/updates to your point of sale software.

General information on EMV can be found at: http://en.wikipedia.org/wiki/EMV

Owning versus Renting Point of Sale Systems

One of the more recent trends in specialty retail point of sale systems is the ability to 'rent' a system. Generally one monthly payment includes the software, hardware and support.  Traditionally, point of sale systems have been purchased outright (or leased with intent to own after 3 to 5 years).

This question came up again when I was co-chairing a retail technology forum at the IFTD show in Reno, NV.

The answer simply comes down to down works best for your budget. An outright purchase means that you own everything and can start enjoying a return on investment with your system. However, just like some people prefer to lease a car, a monthly rental payment tends to be easier on your budget.

Things to watch out for when renting a point of sale system include the following:

1. Is everything included in the monthly payment (software, hardware, support and upgrades)?
2. Do you still have access to all you customer and inventory information should you decided to switch to a different system?
3. What happens if the company goes out of business?
4. How are hardware repairs handled?

The final pondering point we talked about at the conference is that renting will cost more in the long run. With a typical point of sale system starting around $3000.00, we determined that utilizing a similar system with a monthly payment of $79/month will cost $4740.00 over the course of five years.

In the end - it is what works best for you and your budget.  Of note, there are some 'free' point of sale systems being offered. We all know that nothing is free - these companies make money on the back end by charging higher fees for credit card processing or similar services.

How Gift Cards Increase Net Profit

Looking again at data from retail surveys conducted by the Nation Retail Federation and National Cash Register, it is probably not well known that simply selling gift cards through your retail point of sale system can actually increase your net profit.

How?  It boils down to three things that generally happen when someone purchases a gift card from your store:

1. The gift card is set aside or given as a gift and forgotten about.
2. The gift card is used for a purchase but the customer under-spends. The gift card has a value of $50.00 but the customer only spends $45.00 and never uses the remaining amount. I personally tallied up the various partially used gift cards in my laptop bag and they all had unused balances of $.87 to $2.84.  The unused portion of a gift card is pure profit for you.
3. The gift card is used but the customer over-spends. The gift card has a face value of $50.00 but the customer spends $65.00.  That is a 30% increase in the transaction amount.

Factoring these three things, retailers reported net profit increases of 1% to 3% by simply offering gift cards. Considering that point of sale systems  have built in gift card functions, it should be an easy decision as to whether or not to offer gift cards.

When researching point of sale software, I always encourage the retail store owner to make sure that there are no hidden fees related to the selling or redemption of gift cards. The only cost should be for the card itself as the point of sale software should track the gift card sale and redemption (and remaining balance for the customer who wants to reload or fully utilize the cards value).

Even with just a 1% increase in net profit that could equate to $1250 or more annually - depending on your annual gross sales.  There is also some time savings involved since your no longer have to track paper gift certificates as your point of sale system will take care of it for you.  Not a bad deal for simply selling a piece of plastic!

Are you in the US and in need of no cost retail point of sale advice? I'm happy to help and can be reached on my cell at 208-340-5632 (mountain time) or via email at kevinantosh@gmail.com.