What is a POS report?

In today’s competitive business environment, you need to use every tool at your disposal to gain a competitive edge. Likewise, with the increased role of e-commerce and online food ordering, consolidating data across platforms is crucial. Without total oversight of your business, you can be bleeding money or underperforming and never catch it.

How can you access and analyze this data? It’s simple - point of sale (POS) reporting.

What are point of sale reports? What do they do?

In short, POS reports are created using data stored in the system. The POS automatically records all interactions and stores data, and compiles it into business reports for quick access. With this data, a user can analyze anything from sales and returns to payroll and taxes. 

Under everyday circumstances, most people only use simple POS reports that show daily sales volume or inventory levels. However, reporting features can be much more in-depth than this, and many business owners are not utilizing their POS system to its full potential.

Benefits of POS reports

Running a business without POS reports is like driving blindfolded. Sure, you might make it, but you're probably gonna hit a few bumps along the way. Here’s why you need them:

1. See what’s actually going on: With POS reports, you get a clear view of your sales data, inventory, and even employee performance—all in one place. No more guessing or hoping things are running smoothly. It’s like having a business GPS, making it way easier to boost sales.
2. Boost your bottom line: By tracking things like sales trends, net sales, and inventory management, you can make smarter business decisions that help you increase profits.
3. Spot issues before they become problems: Whether it’s an employee slacking off or a product not selling, POS reporting helps you spot issues early. Proactive decisions are far better than reactive ones. And keeping an eye on your cash drawer helps ensure you’re not losing money due to discrepancies.
4. Make payroll simple: All that employee data and clock-in times are automatically logged, so you don’t have to manually tally hours for payroll. Just export the data to your accounting software and boom, you’re done.

Key components of a POS report

A POS report might sound like a bunch of boring numbers, but it's packed with all the essential info you need to keep things running smoothly. Here’s what you’ll find in the mix:

• Sales data
• Inventory levels
• Employee data analytics
• Payment methods
• Sales trends
• Refunds and chargebacks

All these components work together to give you a 360-degree view of your business. Our next section will give you a little more insight into each component.

Types of reports you can generate

You're now able to answer "what is a POS report?" and why they're so brilliant for business. Next, let's look at some of the most common reports you should be able to export with a modern POS system.

Sales

For most businesses, it’s all about the bottom line. Analyzing sales data can show you inefficiencies and ways to grow. If you are not generating enough revenue, you cannot stay afloat for long. In fact, SCORE found that 82% of businesses fail due to cash flow problems. A big chunk of that comes from not keeping a close eye on sales performance. POS sales reports can help you dig into your numbers and figure out what’s working (and what’s not). Here are a few sales-related POS reports you can create:

• Total sales volume: A sales report can let you track how many items were sold within a day, week, or set period.
• Gross profits: See how much your business brings in after accounting for production costs.
• Best/worst selling days: Find out which days are most profitable so you can improve staffing and marketing.
• Best/worst selling products: See which items are most in-demand and bringing in the most sales so you can cater to consumer trends.
• Sales trends: When you generate sales reports, you can analyze long-term patterns to predict future sales performance, prepare for seasonal demand, and align your strategies with customer behaviors.

Payment

Do you pay too much in credit card processing fees? Are you on multiple food delivery apps but don’t know which actually increase your bottom line?

A modern POS system tracks all transaction data, including payment processing methods, you can see how customers like to pay. With this data, you can make smart business decisions to ensure you cater to demand without bringing on extra costs. 

Some common POS reports for payment include:

• Card payments: See how many customers use debit and credit cards, and identify which merchants are most popular. Did you know that increased credit and debit card use between 2022 and 2023 resulted in more than 60% of payments per month being made with credit (32%) and debit cards (30%)? It’s worth knowing how much of your revenue depends on card payments.
• Cash payments: In 2020, many businesses ran out of change and could not take cash payments. Track cash transactions to see how many coins and bills to keep on hand. 
• Online payments: If you have an online store or ordering system, integrate all transactions with your POS. You can then analyze and track performance in one place.
• Third-party applications: If you sell via platforms like Epos Now Delivery, you can track total payment volume to see if these services are worth the price.
• Refunds: Analyze refund volume to find ways to reduce return costs.
• Chargebacks: Track all chargebacks to identify possible fraud or issues of poor performance.

Staffing

How do you manage your work schedule? Do you ever overstaff on slow days? 

POS reports can transform how you manage your team and streamline business operations. With a modern POS system, every staff member logs into the terminal to begin their shift, meaning all their activity and work hours are automatically tracked and stored. These employee reports provide valuable insights that can help you make smarter business decisions.

You can use staff reports for your hospitality or retail business:

• Scheduling: Monitor work hours to ensure they are distributed fairly across employees. Using this data, you can analyze employee performance and reduce costs during slow periods.
• Attendance: Track what times employees clock in and out to spot tardiness and other issues.
• Payroll: Since all hours are logged through the POS system, you can export timesheets directly to your accounting software for faster payroll.

Employee performance

Do you offer commission or other incentives? Do you reward employees with “Employee of the Month” or recognize your top-selling associate? A modern POS system can help you track performance effortlessly. With an in-depth employee report, you can monitor each worker’s contributions and use this data to motivate your team and improve overall business performance.

These valuable insights allow you to pinpoint strengths and areas needing attention, helping you make data-driven decisions to foster growth and productivity.

Here are some common issues you can address with employee reports generated through POS systems:

• Employee sales performance: Identify your top sellers and see which employees generate the most sales (even if they work across multiple locations). Use this actionable insight to create incentives or focus coaching efforts on team members who may need extra support.
• Average tip amount: Review employee tips as an indicator of customer satisfaction. This raw data helps you gauge how customers perceive individual employees and ensure that compensation aligns with their efforts.
• Upselling: Track which employees excel at promoting high-margin products or loyalty programs.

Inventory management

Do you have an accurate count of what’s on shelves and what’s in your storeroom? Do you know how many pours are left in your kegs and bottles?

Whether you operate a retail or hospitality business, your POS system helps you keep an accurate count of what products you have with inventory reports. All transactions automatically count against your last stock take, so you know exactly how much remains. 

POS reports can help manage inventory issues like:

• Expected stock vs. Actual stock: See your expected stock levels to quickly identify theft or shrinkage issues during stock takes.
• Deadstock: Identify non-selling items to prevent over-ordering and determine what needs to be liquidated.
• Out of stock: Identify popular items and set recurring orders to ensure customers get what they need without delay.  

Customer

Your business is nothing without its customers. Failing to satisfy their expectations can lead to lower profits and poor reviews. Since repeat customers spend more than first-time shoppers (67% more to be exact), you can use store reports to meet their demands and encourage repeat business.

Here’s how your POS can improve customer service and keep us with sales trends:

• Identify repeat buyers: Capture customer data and enrol them in your loyalty program to see how often they visit.
• Track shopping habits: Use customer reports to see what returning customers buy to create targeted marketing offers.
• Follow up on lost sales: Capture online shopper data before they finalize their purchase. Send abandoned cart emails to boost conversions.

Location

Does your store have multiple locations? Maybe you oversee restaurant franchises? Or perhaps you're managing a chain of retail stores? Managing multiple locations can be a challenge, but with the right POS system, it doesn’t have to be a headache.

Tracking performance across locations can be difficult. From simple reporting gaps to employees skewing data, it is hard to get an accurate picture from a distance.

With a cloud POS, all devices are connected and data is sent to a central location. Owners and management can get real-time insight into any location from any device. Leaders can see every report mentioned, and you can set permissions to prevent one location from seeing another location's reports.

Common mistakes to avoid in POS reporting

We’ve all been there—rushing to get things done and accidentally skipping over the important stuff. But when it comes to POS reporting, a small mistake can lead to big issues. Here’s some things to watch out for:

• Ignoring the details: It’s easy to glance over inventory reports or employee performance, but missing key data can throw off your entire operation.
• Not updating regularly: Make sure you’re pulling sales data and inventory reports frequently to keep your info fresh and relevant.
• Overcomplicating reports: POS systems are supposed to make things easier, not more confusing. Don’t drown yourself in unnecessary data. Focus on the key components.

Get powerful POS reports with Epos Now

Epos Now point of sale systems empower business owners with a range of reporting tools. While our devices can generate detailed insights, they also integrate with a range of platforms to increase overall efficiency. With our POS systems, you can:

• Synchronize your e-commerce site: Manage your online store directly from your Epos Now terminal and see all data in one place.
• Export reports to accounting software: Generate reports via your POS software and send them directly to QuickBooks, Xero, and other programs.
• Create a customer loyalty program: Enroll shoppers in a unique program and offer rewards/incentives to encourage continued business.
• Store all data securely on the cloud: With online storage, you get 24/7 remote access to your system and add a layer of protection.

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