Hillary Crawford writes about small-business software at NerdWallet and is certified in QuickBooks Online and web design. Her previous roles include news writer and associate West Coast editor at Bustle Digital Group, where she helped shape news and tech coverage. She's appeared on Cheddar News and also worked as a policy contributor for GenFKD. Hillary earned a bachelor's degree with high honors in political science from the University of Michigan.
Email: <a href="mailto:hcrawford@nerdwallet.com">hcrawford@nerdwallet.com</a>.
Hillary Crawford writes about small-business software at NerdWallet and is certified in QuickBooks Online and web design. Her previous roles include news writer and associate West Coast editor at Bustle Digital Group, where she helped shape news and tech coverage. She's appeared on Cheddar News and also worked as a policy contributor for GenFKD. Hillary earned a bachelor's degree with high honors in political science from the University of Michigan.
Email: <a href="mailto:hcrawford@nerdwallet.com">hcrawford@nerdwallet.com</a>.
Ryan Lane is an editor on the small-business team and a NerdWallet authority on student loans. He spent more than a decade as a writer and editor for student loan guarantor American Student Assistance and was a managing editor for publisher Cell Press. Ryan’s work has been featured by The Associated Press, USA Today and MarketWatch, and he previously co-authored the U.S. News & World Report Student Loan Ranger blog. Email: <a href="mailto:rlane@nerdwallet.com”">rlane@nerdwallet.com</a>.
Ryan Lane is an editor on the small-business team and a NerdWallet authority on student loans. He spent more than a decade as a writer and editor for student loan guarantor American Student Assistance and was a managing editor for publisher Cell Press. Ryan’s work has been featured by The Associated Press, USA Today and MarketWatch, and he previously co-authored the U.S. News & World Report Student Loan Ranger blog. Email: <a href="mailto:rlane@nerdwallet.com”">rlane@nerdwallet.com</a>.
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Hillary Crawford writes about small-business software at NerdWallet and is certified in QuickBooks Online and web design. Her previous roles include news writer and associate West Coast editor at Bustle Digital Group, where she helped shape news and tech coverage. She's appeared on Cheddar News and also worked as a policy contributor for GenFKD. Hillary earned a bachelor's degree with high honors in political science from the University of Michigan.
Email: <a href="mailto:hcrawford@nerdwallet.com">hcrawford@nerdwallet.com</a>.
Hillary Crawford writes about small-business software at NerdWallet and is certified in QuickBooks Online and web design. Her previous roles include news writer and associate West Coast editor at Bustle Digital Group, where she helped shape news and tech coverage. She's appeared on Cheddar News and also worked as a policy contributor for GenFKD. Hillary earned a bachelor's degree with high honors in political science from the University of Michigan.
Email: <a href="mailto:hcrawford@nerdwallet.com">hcrawford@nerdwallet.com</a>.
Ryan Lane is an editor on the small-business team and a NerdWallet authority on student loans. He spent more than a decade as a writer and editor for student loan guarantor American Student Assistance and was a managing editor for publisher Cell Press. Ryan’s work has been featured by The Associated Press, USA Today and MarketWatch, and he previously co-authored the U.S. News & World Report Student Loan Ranger blog. Email: <a href="mailto:rlane@nerdwallet.com”">rlane@nerdwallet.com</a>.
Ryan Lane is an editor on the small-business team and a NerdWallet authority on student loans. He spent more than a decade as a writer and editor for student loan guarantor American Student Assistance and was a managing editor for publisher Cell Press. Ryan’s work has been featured by The Associated Press, USA Today and MarketWatch, and he previously co-authored the U.S. News & World Report Student Loan Ranger blog. Email: <a href="mailto:rlane@nerdwallet.com”">rlane@nerdwallet.com</a>.
NerdWallet's content is
fact-checked for accuracy, timeliness, and relevance by humans.
It undergoes a thorough review process involving writers and editors to ensure
the information is as clear and complete as possible. Learn more by checking
our
Editorial Guidelines.
Content was accurate at the time of publication.
Why trust NerdWallet
250+ small-business products reviewed and rated by our team of experts.
80+ years of combined experience covering small business and personal finance.
75+ categories of best business software selections.
NerdWallet's small-business software content, including ratings, recommendations and reviews, is overseen by a team of writers and editors who specialize in business software, including payroll, accounting and payment processing. Their work has appeared in The Associated Press, The Washington Post, Nasdaq, Entrepreneur, ABC News, Yahoo Finance and other national and local media outlets. Each writer and editor follows NerdWallet's strict guidelines for editorial integrity to ensure accuracy and fairness in our coverage.
Advertiser disclosure
You’re our first priority.
Every time.
We believe everyone should be able to make financial decisions with
confidence. And while our site doesn’t feature every company or
financial product available on the market, we’re proud that the guidance
we offer, the information we provide and the tools we create are
objective, independent, straightforward — and free.
So how do we make money? Our partners compensate us. This may influence
which products we review and write about (and where those products
appear on the site), but it in no way affects our recommendations or
advice, which are grounded in thousands of hours of research. Our
partners cannot pay us to guarantee favorable reviews of their products
or services. Here is a list of our partners .
Sync inventory across multiple online sales channels. Other integrations include Zoho Books and QuickBooks Online for accounting.
Free plan includes invoice customization, shipping labels, backorders and item bundling.
Free barcode, purchase order and shipping label generators.
Cons
Free plan caps users at one, purchase orders at 20 and sales orders at 50.
Zoho stands out from other free inventory software with a rich set of features, including options to bundle items, set reorder points, run inventory reports and dropship sales orders.
Sync inventory across multiple online sales channels. Other integrations include Zoho Books and QuickBooks Online for accounting.
Free plan includes invoice customization, shipping labels, backorders and item bundling.
Free barcode, purchase order and shipping label generators.
Cons
Free plan caps users at one, purchase orders at 20 and sales orders at 50.
Zoho stands out from other free inventory software with a rich set of features, including options to bundle items, set reorder points, run inventory reports and dropship sales orders.
Built-in POS system and payment processing; in-house POS hardware available.
Generate unlimited barcode labels.
Create purchase orders from within the software.
24/7 chat support in all plans.
Cons
Must subscribe to Plus plan for 24/7 phone support.
Contract required for discounted pricing.
Lightspeed Retail is a cloud-based POS system for retailers. It has strong inventory management capabilities and is a good match for more established small businesses with multiple locations. Newer small businesses with less complicated operations could be better served with a simpler, less expensive product.
Built-in POS system and payment processing; in-house POS hardware available.
Generate unlimited barcode labels.
Create purchase orders from within the software.
24/7 chat support in all plans.
Cons
Must subscribe to Plus plan for 24/7 phone support.
Contract required for discounted pricing.
Lightspeed Retail is a cloud-based POS system for retailers. It has strong inventory management capabilities and is a good match for more established small businesses with multiple locations. Newer small businesses with less complicated operations could be better served with a simpler, less expensive product.
Free plan includes invoicing, purchase orders, barcoding, shipment tracking and CRM features.
Kitting and bundling add-on available.
Cons
You’ll need to select the Bronze plan ($19 monthly) or up to integrate with QuickBooks Online, Xero, WooCommerce and Zapier.
Mobile app for iOS only.
SalesBinder offers a variety of plans to scale with your business, from small-scale to enterprise-level inventory management.
Cin7 Core
Best for Industry-specific inventory plans
Starting at
$349/month
Additional pricing tiers (per month): $599, $999.
Promotion
14-day free trial
Pros
Can accommodate businesses in multiple industries, including retail and manufacturing.
All plans include two e-commerce integrations, plus an accounting integration.
Track components and finished goods.
More than 100 reports available.
Cons
Plans can be expensive.
Limited number of users in all plans.
Whereas some inventory management software products only accommodate businesses in a particular industry, Cin7 Core can be a good fit for a variety of businesses, thanks to its robust set of features. Each of its three plans support multiple users and include accounting integrations, multi-channel order management, reporting and inventory planning tools. An optional POS add-on, along with a built-in accounting module and B2B portal, help make Cin7 Core an all-in-one solution for growing businesses. If you’re not sure which plan is right for you, start with identifying the type of business you own. There are separate plans for retailers and for manufacturers.
Cin7 Core
Best for Industry-specific inventory plans
Best for Industry-specific inventory plans
Starting at
$349/month
Additional pricing tiers (per month): $599, $999.
Promotion
14-day free trial
Pros
Can accommodate businesses in multiple industries, including retail and manufacturing.
All plans include two e-commerce integrations, plus an accounting integration.
Track components and finished goods.
More than 100 reports available.
Cons
Plans can be expensive.
Limited number of users in all plans.
Whereas some inventory management software products only accommodate businesses in a particular industry, Cin7 Core can be a good fit for a variety of businesses, thanks to its robust set of features. Each of its three plans support multiple users and include accounting integrations, multi-channel order management, reporting and inventory planning tools. An optional POS add-on, along with a built-in accounting module and B2B portal, help make Cin7 Core an all-in-one solution for growing businesses. If you’re not sure which plan is right for you, start with identifying the type of business you own. There are separate plans for retailers and for manufacturers.
Backbar
Best for Bar and restaurant inventory management
Starting at
$0
Additional pricing tiers per location (per month): $99, $149.
Promotion
One-month free trial
of the Essential or Professional plan.
Pros
Unlimited number of users, even with the free plan.
POS integrations and one-click purchase orders available in all plans.
Ability to calculate pour costs, drink profits and recipe costs.
Access to detailed reports on product trends, menu prices, profit and excess inventory.
Cons
Limited to a single restaurant or bar location and only six months of reporting history for the free plan.
Custom report tagging and QR code menu links only available in highest-tier plan.
If you have a single location for your restaurant or bar, you can use Backbar and most of its inventory management features for free. And if your business opens more locations down the line, Backbar offers paid plans that can grow with your business.
Backbar
Best for Bar and restaurant inventory management
Best for Bar and restaurant inventory management
Starting at
$0
Additional pricing tiers per location (per month): $99, $149.
Promotion
One-month free trial
of the Essential or Professional plan.
Pros
Unlimited number of users, even with the free plan.
POS integrations and one-click purchase orders available in all plans.
Ability to calculate pour costs, drink profits and recipe costs.
Access to detailed reports on product trends, menu prices, profit and excess inventory.
Cons
Limited to a single restaurant or bar location and only six months of reporting history for the free plan.
Custom report tagging and QR code menu links only available in highest-tier plan.
If you have a single location for your restaurant or bar, you can use Backbar and most of its inventory management features for free. And if your business opens more locations down the line, Backbar offers paid plans that can grow with your business.
Katana’s inventory software lets you track both raw materials and finished products, set reorder points and see which items have the best profit margins.
Katana’s inventory software lets you track both raw materials and finished products, set reorder points and see which items have the best profit margins.
Brightpearl
Best for Built-in accounting features
Promotion
N/A
Pros
Sync inventory across multiple channels online and in-store.
Create automation rules for tasks like order processing and invoicing.
Forecasting tools predict demand and make inventory recommendations.
Also offers its own POS system, accounting and invoicing capabilities, CRM system and warehouse management software.
Cons
Quote-based pricing makes it difficult to compare costs.
Excessive for small businesses that don’t plan to grow.
Quickly growing e-commerce businesses that need a holistic solution for running their retail operation might consider Brightpearl. In addition to offering e-commerce inventory and order management, the retail operating system also has an integrated CRM solution and POS system.
Brightpearl
Best for Built-in accounting features
Best for Built-in accounting features
Promotion
N/A
Pros
Sync inventory across multiple channels online and in-store.
Create automation rules for tasks like order processing and invoicing.
Forecasting tools predict demand and make inventory recommendations.
Also offers its own POS system, accounting and invoicing capabilities, CRM system and warehouse management software.
Cons
Quote-based pricing makes it difficult to compare costs.
Excessive for small businesses that don’t plan to grow.
Quickly growing e-commerce businesses that need a holistic solution for running their retail operation might consider Brightpearl. In addition to offering e-commerce inventory and order management, the retail operating system also has an integrated CRM solution and POS system.
Finale Inventory and QuickBooks Online Advanced subscriptions can be bundled.
Offers a variety of POS and e-commerce integrations including Lightspeed, Shopify, Square, Amazon and Etsy.
All plans include at least one virtual training session.
Can create purchase orders from within the software.
Cons
Must subscribe to the Silver plan or higher to integrate with QuickBooks Online.
Finale Inventory supports a number of industries from apparel businesses and distributors to pet suppliers and solar companies. A unique feature of this inventory software is that it allows you to bundle QuickBooks Online Advanced, the most expensive QuickBooks Online accounting plan, with Finale Inventory’s Silver plan or higher, so you can save some money overall. These bundles start at $499 per month or $4,990 per year, making them more ideal for growing businesses as opposed to very small ones.
All Finale Inventory plans include kitting and bundling, invoicing and serial number tracking. Each plan increases the number of users, monthly purchase and sales orders and integrations. The Silver plan comes with additional capabilities like report customization, but you’ll need to subscribe to a higher-tier plan if you want access to the Android app for barcode scanning.
Finale Inventory and QuickBooks Online Advanced subscriptions can be bundled.
Offers a variety of POS and e-commerce integrations including Lightspeed, Shopify, Square, Amazon and Etsy.
All plans include at least one virtual training session.
Can create purchase orders from within the software.
Cons
Must subscribe to the Silver plan or higher to integrate with QuickBooks Online.
Finale Inventory supports a number of industries from apparel businesses and distributors to pet suppliers and solar companies. A unique feature of this inventory software is that it allows you to bundle QuickBooks Online Advanced, the most expensive QuickBooks Online accounting plan, with Finale Inventory’s Silver plan or higher, so you can save some money overall. These bundles start at $499 per month or $4,990 per year, making them more ideal for growing businesses as opposed to very small ones.
All Finale Inventory plans include kitting and bundling, invoicing and serial number tracking. Each plan increases the number of users, monthly purchase and sales orders and integrations. The Silver plan comes with additional capabilities like report customization, but you’ll need to subscribe to a higher-tier plan if you want access to the Android app for barcode scanning.
Jump to
What is inventory management software?
Inventory management software is a program that tracks how much inventory you have in stock, how much you’ve sold and where each item is located. After signing up for an account online, you’ll add all of your inventory items to the system or import a list. From there, you may fill out purchase orders and track sales from within the software.
More sophisticated inventory management software will forecast stock levels based on previous sales and tell you how much inventory you should order and when. That way, you’ll have your most in-demand products in stock when you need them while also preventing an overstock of items, especially those that are less in demand.
Your inventory management software should integrate with all of your sales channels — meaning your e-commerce platforms and point-of-sale (POS) system. On top of that, make sure it integrates with your accounting software. Inventory is considered a current asset account and appears on your balance sheet.
💬 From our Nerds: Tips for setting up your inventory system
"Every business has to create categories for their inventory. Software can make doing so pretty simple — sometimes, too simple. I think things can quickly become overly complicated based on how you choose to segment products.
"My best advice? Start small. Begin by categorizing according to location, department or item type. Don’t worry about unique entries for different sizes and colors. You can usually add those options as “variants” or “variations” of existing items to simplify tracking."
Real-time inventory tracking . Track inventory items as they move through the supply chain and order fulfillment process. Software with this feature will immediately update when returns and sales are made, too.
Multi-channel inventory management . Businesses that sell products in multiple places will need to centralize their sales and inventory data in one place.
Low-stock alerts and reorder points . You can set custom reorder points so that you’re notified when it’s time to order more inventory. Some software will even suggest or calculate these for you.
Purchase order management . Creating and sending purchase orders from within your inventory management software allows you to streamline the process. This can be especially helpful for businesses that use the just-in-time inventory strategy.
Digital labeling and barcode scanning . Counting inventory by hand takes time and is prone to human error. Scanning items’ SKU or UPC labels as they're delivered or packed for shipment is much more efficient. Some software lets you use a mobile device as a scanner.
Kitting and/or parts and assembly tracking . Track products with multiple parts both individually and as a whole.
Reporting . Look for reports on inventory forecasts, cost of goods sold, inventory profitability and sales by item or product.
Integrations . Inventory software should integrate with your accounting software, e-commerce platform and POS system.
Industry specifics . Restaurants have different inventory needs than retailers, for example. Finding software that caters to your unique business can help maximize profit.
Item variants and units of measure flexibility . Businesses that sell the same shirt in multiple sizes and colors, for example, will need inventory management software that lets you record variants (like color and size), as well as descriptions.
Order fulfillment options . Inventory management software with shipping add-ons or features helps you manage the fulfillment process end-to-end.
Unless you choose a free inventory management software option, subscriptions can be expensive — upward of $300 per month in some cases. Less-expensive inventory management software costs between $50 and $100 per month, and most platforms offer a range of plans and prices.
The more complex your business’s inventory needs, the more you should expect to pay. The following factors may impact your monthly inventory management software costs:
How many inventory locations or warehouses your business has.
How many items you need to track.
The number of sales channels you need to integrate.
How many users need to access the inventory management software.
The number of sales orders you create per month.
The complexity of your production process. For example, it may cost more to track both parts and finished products.
Whether you need add-ons for shipping. Small businesses that ship orders may need a more sophisticated product that includes end-to-end order fulfillment options.
Your payment schedule. Opting to pay annually, as opposed to monthly, will usually save you money. Just make sure you’re ready to commit to the product for an entire year if you go that route.
To choose the best inventory management software for your business, take these four key factors into account:
Features
Some main features to look for, regardless of your business’s industry, include basic inventory tracking, reporting, reorder points and the ability to create purchase orders to send to vendors. Examples of more advanced features could be shipping add-ons for businesses that deliver orders to customers and inventory forecasting that calculates reorder points based on previous sales data.
Cost
Business software costs start to snowball as you subscribe to more products (and integrate them), so it’s best to choose options that can fulfill multiple purposes. Before subscribing to software specifically made for inventory management, check to make sure your existing software products, like your accounting program or POS software, don’t already meet those requirements for you.
If you determine that you need dedicated inventory management software, the question becomes whether a free option will suffice. Free versions are a great choice for very small retail businesses, in particular, but businesses in specialized industries, like manufacturing, might choose a paid alternative that’s more specific to their needs. Paid plans typically run from anywhere around $40 to more than $300 per month. And if the software doesn’t have built-in integrations, you might have to pay to integrate them through a third-party product like Zapier.
Integrations
Your inventory management software needs to sync with your accounting software so that you can keep tabs on how much your business has spent on inventory and how that inventory impacts your business’s overall value. And since your POS system facilitates and tracks sales, your inventory management software should integrate with it, too. That way, the POS software will update stock counts as items are sold.
Ability to track items sold in different places
This is most applicable to businesses that sell inventory from more than one sales channel — whether it’s your own online store and another online marketplace, like Etsy, or an online store and a brick-and-mortar. You want to be able to track how much inventory is being bought and replenished for each sales channel. This can also help you gauge which channel attracts the most sales.
Benefits of inventory management software
One of the biggest benefits of inventory management software is that it can save your business time and money in a variety of ways. Ordering too much inventory can be a costly mistake if it sits on the shelf for too long and depreciates or, even worse, expires. At the same time, you don’t want to run out of popular inventory and lose out on profit.
Inventory management software can help solve this by calculating reorder points and forecasting inventory levels. It can also speed up inventory counts with barcode scanners, automate purchase orders and streamline different stages of the order fulfillment process, such as shipping.
A more efficient inventory management system could boost your inventory turnover ratios, too. In general, a higher ratio means your business’s inventory is selling well. Products sitting on your shelves for too long, however, can drag your ratio down.
Stand-alone softwareMade specifically for tracking inventory and typically more advanced and scalable than the inventory management features that come with POS or accounting software. A good fit for small businesses that need to track hundreds of items, their variations and the raw materials used to produce them.
Accounting softwareSome accounting software has built-in inventory management tools that are worth considering before subscribing to a separate, stand-alone inventory tracker. For example, QuickBooks Enterprise has in-depth inventory management tools.
POS softwarePOS systems often come with basic inventory management tools. Some popular examples include Square Retail POS and Lightspeed Retail POS. If they’re sufficient for your business, you could save significant monthly costs by not subscribing to additional inventory management software.
Inventory management software FAQ
How does inventory management software work?
Inventory management software helps your business avoid ordering too much or too little inventory, so that you can reduce waste and save money. It keeps tabs on how much of each item your business has and when particular products are in high demand. That way, you can make sure your shelves are stocked accordingly.
Is inventory management software expensive?
Robust, industry-specific inventory management software can cost well upward of $100 or even $300 per month. Sometimes, you can save by paying annually instead of monthly. Companies like Zoho also offer free inventory software options that can be a great launching point, as long as they integrate with your existing software ecosystem.
Last updated on May 6, 2025
Methodology
Methodology
NerdWallet evaluates inventory management software based on its features, scalability, cost, integrations and specialization. Most products include some combination of the following features:
- Granular inventory tracking.
- Reporting.
- Accounting, POS and e-commerce integrations.
- Barcode scanning.
- Purchase order management.
- Order fulfillment options or shipping add-ons.
Since inventory management software isn’t as universal as some other types of business software, we also weigh a product’s ability to fill a particular niche or accommodate a specific industry.