Many small shops start with billing software: a program that creates a bill with the business name, items, tax and total. It is simple and it works. So why do growing shops move to POS software?
What billing software does well
Billing or invoicing software is good at producing a clear, numbered bill quickly. If you sell services, sell a handful of products, or mainly need tax-compliant invoices, it may be all you need.
Where billing software stops
A bill is the end of the process for billing software. It usually does not know:
- what is left on the shelf after the sale,
- what the item cost, so it cannot show profit,
- who the regular customers are and what they owe,
- which cashier made the sale or gave the discount,
- which branch sold it.
What POS software adds
| Need | Billing software | POS software |
|---|---|---|
| Fast bill with tax | Yes | Yes |
| Barcode scanning | Sometimes | Yes |
| Stock updated by every sale | Rarely | Yes |
| Purchases and supplier payments | Rarely | Yes |
| Customer credit and balances | Sometimes | Yes |
| Staff roles and permissions | Rarely | Yes |
| Several branches | Rarely | Yes |
| Profit, stock and tax reports | Limited | Yes |
When to move from billing to POS
Consider POS software when you count stock by hand, run out of best sellers, give customers credit, hire staff, or open a second shop. Each of these is easier when the bill, the stock and the customer live in the same system.
You still get proper invoices
Moving to POS software does not mean giving up invoices. In Dynamic POS every sale can print a short receipt or a full invoice with your logo, tax details, terms and a QR code, and the layouts can be customized. See the full feature list or start on the free plan.