How to Create a POS System in Excel

Excel is a rich and intelligent software, and a good knowledge of how it works means you’ll be able to use it for many of your business needs, including creating a Point-of-Sale (POS) system. A good POS system allows you to effectively log and scan the items a customer is purchasing, and some platforms include features like integrated time tracking and inventory monitoring.

Although it can be a cheaper alternative, we wouldn’t recommend using Excel as a POS system ahead of standard software, particularly as there are plenty of free or cheap POS systems available on the market that can suit a variety of business needs. Better yet, many come with high-quality hardware and boast features beyond simple sales monitoring.

Here, we’ve created a short guide on creating an Excel POS system, while also rounding up the best free plans and paid alternatives. For a more targeted POS System quote, you can check out our price tool.

On This Page, We Cover:

• Is Excel a Good Platform For a POS System?
• Pros of Creating a POS System in Excel
• Cons of Creating a POS System in Excel
• How To Create a POS System in Excel
• Alternatives to Using Excel for POS

Is Excel a good Platform for a POS System?

Although there are some benefits to using Excel as a POS system, this is not something we recommend. If you do opt for one, you’ll have the freedom to customize and make it as simple or as complex as you want. And if you’re knowledgeable about Excel macros and enjoy a particular setup, this could be beneficial. It’s also a readily available and cheap option.

However, while Excel does have a lot of data analysis abilities, it’s far from the ideal POS software for small businesses. If you don’t have a strong knowledge of Excel, you’ll have to learn, which could be time-consuming –particularly if you want to use automation features that most existing POS software have already set up. It also goes without saying that there are limitations to even the most thorough of Excel POS sheets. It’s also difficult to integrate the program with other POS hardware, such as receipt printers.

Here are the key takeaways:

Pros of Creating a POS system in Excel

• Customization options can suit a variety of styles
• Cheaper than some other softwares
• Can be a good choice if you enjoy creating your own systems

Cons of Creating a POS system in Excel

• Steep learning curve if you don’t have existing Excel knowledge
• Set-up and update times can be long
• Excel doesn’t integrate with POS hardware, meaning some data will have to be manually input or other applications bought to support integration
• There may be security and privacy risks if you are inputting sensitive data
• You’d be missing out on the other useful features of POS systems, such as marketing tools and customer loyalty schemes

How to create a POS system in Excel

Here are a few simple steps you can follow to get yourself started with an Excel-based POS:

• You can start by creating a sheet for all of the products you will be tracking, with the headings: Product ID, Product Name, Category, Description, Price, Size/Portion
• Once filled out, you can create a sheet for Invoicing, and lay out your page to clearly show the Date, Order Number, Type of Payment, and Item. Then you can add Total, Subtotal, Discount, and Grand Total. This will be the template that your invoices will follow
• By using Excel formulas, you can calculate the correct values in each cell as prices and quantities are inserted. For instance, multiplying the cell numbers of ‘Price’ and ‘Quantity’ in the ‘Amount’ cell using the formula (=[Price cell no.]*[Quantity cell no.]) will ensure your amount is indicative of these two factors
• You can also use a formula to ensure any discounts are applied, by telling the program to subtract the ‘Discount’ cell from the ‘Subtotal’ cell, using their cell numbers in (=[Subtotal cell no.]-[Discount cell no.])
• You can then create sheets for storing the dates, order numbers, payment types, subtotals, discounts, and grand totals

We recommend continually testing the sheets if you are using Excel macros to make sure functions and commands are running as they should.

Alternatives to using Excel for POS

If you are looking for a POS system, we would recommend Toast, Square and SpotOn for their excellent free plans, and Clover, Lightspeed and EposNow for a paid option. POS systems today boast a variety of features beyond sales and inventory tracking. In a basic system setup, you’ll receive sleek software and hardware that work cohesively to manage employees, process different transaction types, and analyze sales data.

There are also extensive marketing tools that can help you set up customer loyalty schemes and options for floor plan customization. Below, we have given options for free and paid POS systems that serve as an alternative to Excel.

Best Free POS Platforms

Toast

Toast was ranked top amongst our picks of the best free POS systems because of its excellent free starter kit, which includes a pay-as-you-go plan.

Overall, we enjoyed these elements of Toast’s free plan:

• Smooth user experience and a sleek and modern interface
• Great range of hospitality features, including digital menus
• Real-time fraud monitoring feature
• A range of marketing features, including encouraging repeat buying
• 24/7 chat support
• You’ll receive a handheld ordering device as part of the plan

However, Toast is not the best option if you want to use it alongside iOS hardware, as it only supports its own hardware models.

Square

In a similar way to Toast, Square’s free plan includes plenty of features. Here are the ones that stuck out to us the most:

• Stripped-back, user-friendly interface and hardware that is impressive to guests
• Strong third-party integration options
• Advanced reporting options to analyze sales performance and more
• Fraud protection services
• You’ll receive a free Square card reader for Magistripe, used for swiping credit cards

However, Square does not offer 24/7 customer support, unlike Toast and SpotOn, and if you want to access team management and payment features, you’ll have to fork out $35 per month + $6 per employee for Square’s Payroll add-on.

SpotOn

SpotOn may still be up-and-coming in the world of POS systems, but it is a great choice in particular for food businesses. In terms of what you can expect with its free plan, here’s what we liked:

• Great range of retail features, including an advanced reporting and analytics platform
• 24/7 customer support
• Restaurant features, including table layout and menu management functions
• Features to help grow a customer base through marketing and review software
• You’ll receive a water and dust-resistant 15-inch POS terminal and an optional stand, cash drawer, and receipt printer

It should also be noted that SpotOn does not currently offer a free tier for retail businesses. In these cases, Toast or Square may be a better free option.

Best Paid POS Platforms

While there are plenty of free options available, if your business wishes to take advantage of all of the features POS platforms have to offer, opting for a paid plan is a good idea.

As well as Clover, Lightspeed, and Epos Now, the three POS software covered above – Toast, Square, and SpotOn – also have great paid monthly plans for your business.

Clover

Clover earned commendation in our best restaurant POS systems for professional hardware options that are some of the best on the market. Here is what stuck out for us in their paid plan:

• Intuitive and simple to use software
• Some of the best hardware options on the market, which are responsive and fast
• Advanced features, such as fingerprint logins and bill splitting
• Great integrations with other apps
• A unique CRM app, Clover Rewards, which could help attract loyal customers

Although it does not provide a free plan, you can still try Clover for 30 days with a free trial.

Lightspeed

Lightspeed Restaurant’s features for retaining loyal customers are what make it stand out from the crowd. These are the features we liked the most:

• Advanced inventory management, allowing you to track items across several branches
• Great customer loyalty toolkit, including SMS marketing and custom loyalty programs
• A cost vs profit breakdown feature that allows you to keep an eye on margins
• Excellent online ordering options
• Multi-location management for big businesses

However, Lightspeed is also completely app-based, so businesses looking for an all-in-one POS terminal should look more towards SpotOn or Clover.

Epos Now

Epos Now is a great option for restaurants with large or complex inventories, and is a feature-rich software on both its app and multi-device POS terminal. Here are the things that stuck out to us:

• Cost vs profit management tools. great for large inventories
• Customization options within the menu, including custom floor plans
• Solid till features and till-based products
• Alerts for low stock and bulk upload options

However, in our testing, we found Epos Now was not the easiest to use. So, in cases where a simple interface is preferred, Toast may be the better option. You’ll also have to contact customer services for the most accurate pricing, including transaction fees.