From Clock-Ins to Cash Outs: Why POS + Payroll Integration is Critical | Netchex
Restaurants
Jan 29, 2025

From Clock-Ins to Cash Outs: Why POS + Payroll Integration is Critical

From Clock-Ins to Cash Outs: Why POS + Payroll Integration is Critical
Blog

Share

KEY TAKEAWAYS:
  • POS systems can perform multiple functions, including serving as time clocks
  • Integrate POS with payroll software to verify hours and streamline pay
  • Commissions and tipped wages are easier with integrated software
  • Identify staffing shortages and compare performance with one system

Businesses (successful ones) typically have lots of money flowing in and out. At restaurants and retailers, sales flow in through the cash register and point of sale system (POS). Payroll (and the cost of labor) makes up as much as 70% of the cost of doing business. In a matter of days or weeks, most of that revenue flows out of the company with the next pay period. Simplify your business integrating your POS and payroll systems and start utilizing the same software for the biggest types of transactions at your company.

What is a POS (Point of Sale) System?

POS isn’t just a popular label for ex-boyfriends, it’s also an acronym for Point of Sale (POS) systems, such as touchscreen cash registers. With today’s electronic transactions and card payments, mechanical cash tills are as antiquated as the abacus and stone tablets. Your POS needs to be easily updated with temporary specials and changes to products. 

Small businesses might use a dedicated iPad or tablet computer as their POS, but serious retailers and restaurants should use a POS system that’s designed for their specific needs and industry. 

  • Restaurant POS

The typical restaurant POS needs to manage tables and send orders to display or print in the kitchen. Split checks and order customization are must-have abilities for the food service industry. A single transaction might last more than an hour from appetizer to dessert, so several open tabs per server need to be managed concurrently.

READ: From Kitchen to Front of House: Restaurant HR Software Helps Everywhere

  • Retail POS

Fast and efficient, a retail POS might be as simple as a barcode scanner that finds items in the inventory list. You might offer discounts and track which employee is managing each transaction. Loyalty programs collect contact details and track points for individual customers.

The Importance of Your POS

It’s hard to run (and grow) a cash-only business. Today’s marketplace requires nearly all businesses to be able to handle card transactions. As you have more staff handling a larger number of transactions, your POS system helps things go smoothly.

Collecting and Organizing Data

More than just sales and income, your POS can help track inventory. Follow customer behavior and trends for analysis. Provide bonuses and incentives for workers who make the most upsells.

Improved Customer Experience

Customers want to give your business money. Make it as easy as possible with an efficient POS. Nobody enjoys waiting in line for a malfunctioning register. Integrated POS systems encourage employees to take personal responsibility for each customer transaction.

Integration with Other HR systems

Connect your POS system with other HR software. Many POS registers can serve as a time clock. Compare the efficiency of different employees with detailed reporting and Performance Management Software.

LEARN: HR Technology Integration – Why It Matters and Why You Can’t Afford to Ignore It

Benefits of Payroll – POS Integration

Different HR systems use a lot of the same employee data. Software integration allows a business to streamline and automate complex HR routines. Most POS systems are primarily focused on transactions, but there are several great reasons to integrate sales activity directly with payroll.

Calculating Commissions and Tips

Does an employee’s sales figures affect their income? Restaurant servers and others rely on tips for the majority of their income. If you use a commission model or give incentives for employees to upsell customers, then an integrated POS can help you reward the highest performers.

Accurate Time Tracking

Use your POS as a time clock to help manage tardiness and missed punches. Employees who forgot to punch the clock will need to login to complete their first sale. Activity at the POS should correlate with shift changes and scheduled hours. 

DISCOVER: 12 Essential Time and Attendance Software Features

Simplified Payroll Processing

Swapped shifts and tipped income affect employee wages. Use your POS system to track who’s working their scheduled hours. Managers can verify the numbers for each pay period, but automated payroll should be able to quickly calculate taxes and other withholding figures as needed.

READ: Key Ingredients Needed for Restaurant Payroll Software

Real-Time Labor Cost Insights

Restaurant managers already know to watch out for servers going into overtime. Payroll and POS integration gives you real-time insights into overstaffed shifts and inefficient scheduling.

READ: Top Strategies to Control Labor Expense for Your Company

Elimination of Duplicate Data Entry

Don’t ask managers or HR staff to waste their time copying data between systems. Use integration to automatically transfer employee information and keep everything up to date.

Enhanced Compliance and Reporting

Automatic reporting and recordkeeping makes it easier to verify your compliance. HR software companies are invested in following the latest trends in overtime rules and other labor laws.

Employee Satisfaction

Incorrect paychecks make employees furious–although being underpaid is noticeably more upsetting than being overpaid. Timekeeping and payroll should be user-friendly and reliable. Integration removes the biggest opportunities for human error and unnecessary drama.

DISCOVER: Service with a Smile: Increasing Restaurant Employee Retention

Easier Onboarding

Once new hires are entered into your HR system, you shouldn’t have to re-enter the same names and personal information for your POS and payroll systems. Save time and money by streamlining and digitizing onboarding paperwork.

READ: Take Care of the HR Prep Work with Restaurant Onboarding Software

Reducing Shrinkage

Buddy punching is pretty common in businesses without biometric time clocks or integrated POS systems. If an employee isn’t scheduled to be working, then you should be suspicious about any sales or refunds rung up with their account.

Discover how Netchex can help your company with Payroll + POS integration:

Related articles

Blog 1
Restaurants - 10/29/24

Restaurant Management

Read article
Blog 1
Restaurants - 06/10/24

Growing Your Restaurant Franchise: HR Software Benefits and Features

Read article
Blog 1
Restaurants - 05/28/24

Service with a Smile: Increasing Restaurant Employee Retention

Read article
Blog 1
Restaurants - 05/21/24

Take Care of the HR Prep Work with Restaurant Onboarding Software

Read article

With top-ranked technology and better customer service, discover what Netchex can do for you