Point of Sale and Credit Card Processing

As point of sale software companies look to increase revenue, one of the common trends over the years has been to 'force' customers to use a certain company for credit card processing services (also known as merchant services).  One of the first companies to do this was Intuit when it came to QuickBooks Point of Sale software. You can always use a separate card terminal but processing credit and debit cards within the point of sale system is much more efficient (only one receipt and quicker end of day procedures).

I've had the opportunity to review merchant services statements from businesses using QuickBooks Point of Sale and Intuit Merchant Services and found that the merchant was generally paying 1/2 to 1% higher than normal fees.  For a typical retail business, this could easily add up to $2000+ annually in additional merchant services fees.

Point being - I highly recommend that you consider two things when searching for a point of sale system:

1. Ask if the point of sale software works with multiple merchant services providers - that allows you to shop around for the lowest rates.
2. Ask about hidden fees related to the point of sale software and merchant services. For example NCR's CounterPoint point of sale software allows you to pick and choose a merchant services company but, if you do not use NCR Payment Services, then you will be charged an additional annual fee (generally less than $200 annually but something to keep in mind).

All in all, pay attention and ask questions when it comes to point of sale software and merchant services - failure to do this could have a negative effect on your bottom line.

Year End Physical Inventory

Physical Inventory Tip for Retail Stores: CounterPoint, Microsoft RMS, and QuickBooks POS Pro all have the ability to conduct year end physical inventory counts. In a hurry?  CounterPoint, QuickBooks Point of Sale Pro, and Microsoft RMS allow you to perform physical inventory counts for just specific departments or categories – a great way to do some spot checks on a rotating basis for items susceptible to theft or cashier error.

Want to speed up the physical inventory count?  There are a variety of hand held devices that allow you to scan inventory and then send a file to your point of sale computer to generate an inventory variance report.

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.

Point of Sale Equipment and Tax Deductions

Great article written by an expert on small business year end tax deductions. Note that section 8 discusses how to handle business equipment deductions (like the cost of cash register or point of sale equipment): http://www.nolo.com/legal-encyclopedia/top-tax-deductions-small-business-30176-2.html

Keep in mind payment for equipment purchases has to be made in 2012. I can think of many New Years Eves when a retail store, bar or restaurant would call me or stop by our office to pre-pay for a point of sale system. They needed to maximize their business equipment tax deduction and point of sale equipment makes for a great business equipment investment.

Section 10 of the article also talks specifically about to depreciate small business software expenses.