As any store owner or operator knows, today's retail business is intense, challenging and highly competitive, especially for the smaller family-owned or independent store. So why risk competitive disadvantage, or lost time, money and customers at the checkout by relying on outdated methods for handling transactions at the point of sale (POS) - the cash register?

While the larger chains may have the size, product selection and buying power that you don't have, there are ways that independent and small retailers can level the playing field. How?

By investing in a simple, cost-effective checkout system that provides your operation with increased security, more efficient customer checkout, accurate accounting and valuable information on product sales.

Buying a new POS system is a big step, particularly for family-owned businesses that have long relied on "traditional" methods of transacting business in which store operators take the cash, place it in a drawer or cash box and provide customers with handwritten receipts.

As your business grows and the world of retailing becomes not only more competitive but also more complicated, now is a good time to rethink whether the old way of doing business is really working for you.

This might involve hiring new employees that are not family members. If your current structure gives everyone easy access to cash, you may find that trusting others with the daily receipts becomes impractical and leaves you vulnerable to theft or other security issues.

Bonding companies often use a 10/10/80 rule of thumb: 10 percent of employees are likely to steal from you; 10 percent of employees will never steal from you; and the safeguards you have in place help the remaining 80 percent of employees remain honest.

One of the many advantages of a POS system is it can be an effective deterrent to employee theft. A large, clear customer-facing display and detailed, mandatory customer receipts help to reduce both the opportunity and the temptation to misrepresent the amount of a sale. Accurately and securely recording every transaction that takes place in your store goes a long way to ensuring that the day's receipts end up in your bank account and not in someone's pocket.

However front-end systems are not designed to be just a method of loss prevention. They can be a customer service differentiator. Increasingly, consumers have less time for shopping so it is important to determine if you are serving them as quickly and efficiently as possible? Is your checkout process slowing customers down and creating frustration? If so, a cost-effective POS system could be one of your best investments for improving customer service.

Many small stores also face limited space which is why it is important that you know and understand what products are selling in order to avoid out-of-stocks. Nothing is more inefficient or imprecise than handwritten order forms that can get lost and are often illegible. The result is the same - empty shelves where your products should be. The right POS system can generate information-rich sales reports that highlight what's hot and what's not, and detail exactly where your inventories stand at any point in time.

Pricing is another factor to consider when thinking POS. Because customers seldom complain when they have been undercharged, you are left holding the "lost revenue" bag. And if overcharging is common practice, it's a safe bet that some of your customers may simply shop elsewhere. No matter how you look at it, inaccurate pricing costs you money.

Finally, POS equipment suppliers and reliable local resellers are your best resource when looking for a system that will address your store operation. Why not ask other retailers what they recommend, but be sure you gather opinions from store owners and operators who specialize in your industry segment.