Point of sale (POS) software integrates the physical devices in the POS systems with computer language and thus facilitates automated data processing. POS software not only monitors almost all day-to-day activities of any business, but also helps to run them systematically, keeping track of income and expenditures, inventory, stock, and clearance, billing, customer, and transaction records and customer service through touch screen information kiosks and vending machines. Speedy business transactions and accurate budgeting helps vendors increase their profits significantly. The software also helps in paging in hotels and restaurants, taking online food orders and delivery of food items.

The very first POS software was introduced by IBM, which came out with IBM 3650 and 3660 Store Systems in August 1973; the software was first installed in Pathmark Stores in New Jersey and Dillards Department Stores. Now, POS needs have become so wide and varied that different POS software is tailored to suit the specific needs of different industries. The most popular of these industries include restaurants and retail stores. Software for each of these industries has unique features that automate sales and customer transactions and ensure staff accountability. For example, POS software for a hotel will ensure that a guests personal calls are automatically are automatically billed into his account by the computer and added to other charges. And a retail outlets POS software will require employees to swipe their cards to record their work hours and will keep stock of all the product details. Some point-of-sale software also includes credit and debit card swipe facility, fake-check tracing, and report-generating capabilities for day-to-day and monthly transactions.

Vendors usually take trials of different software before deciding the best software for their industry. Essential for the installation of basic POS software are computers, printers, cash registers, scanners, and keyboards. Barcode printing software, cash register express software, and inventory software are essential for any business that uses a point-of-sale system.