Best Inventory Management Software of 2024

The best inventory management software supports all of your business’s sales channels, streamlines order management and generates detailed reports. The basic inventory tools that come with small-business accounting software and point-of-sale systems can be sufficient in some cases, but more complex operations may require stand-alone software with extra capabilities.

Our top inventory management picks include:

• Best free option: Zoho Inventory.

• Best for retail shops: Square.

• Best for bars and restaurants: Backbar.

• Best for manufacturing companies: Katana.

Below is NerdWallet's complete list of the best inventory management software picks and what makes them stand out from the competition.

A detailed look at the best inventory management software

Why we like it: Unlike many of its competitors, Zoho Inventory offers a free plan that includes a decent handful of inventory management features: You can process 50 sales orders per month, print 50 shipping labels per month, track items from one warehouse, integrate with one Shopify store and run inventory reports. All plans come with e-commerce, payment gateway and accounting integration options, too. Zoho Inventory’s plans scale up according to the number of users, warehouses, orders, bills and shipping labels, and the software is especially ideal for entrepreneurs who subscribe to other products in the Zoho suite, like Zoho CRM or Zoho Books.

Why we like it: Square is a top-rated POS system and its retail-specific platform, Square for Retail, offers inventory management features that can be sufficient for many small retail businesses. Business owners can sync inventory across multiple channels, both in store and online. All plans come with a free online store and let you offer in-store pickup and delivery options, send invoices, group items into categories, set up low stock alerts and add product details (like size or color) to each item. For more time-saving capabilities, like inventory scanning and barcode label printing, you can upgrade to the paid Plus plan.

Why we like it: Lightspeed Retail is a POS system with strong, built-in inventory management features. In addition to keeping track of stock, you can fill out purchase orders from within the software, bundle multiple items and make bulk price changes across sales channels. The system lets you set up reorder points and low stock alerts, choose from a wide variety of product variations and generate an unlimited number of barcodes, which is important for businesses that sell a high volume of items. Report customization options allow you to filter by date, outlet, supplier and brand, as well as available or low inventory. To sync your sales and inventory data with accounting software, like QuickBooks or Xero, you’ll have to opt for the more expensive Standard plan.

Why we like it: Sortly isn’t the only inventory management software with a mobile app, but its app is one of the simplest. You can use it to scan QR codes and barcodes with your smartphone, upload photos of items and scroll through your inventory lists. Just know that you’ll need to subscribe to the Ultra plan or higher to generate your own barcodes. User licenses and item entry allowances also increase as you scale up. All plans, however, include offline mobile access, which lets you modify inventory counts when the internet is down. Overall, Sortly is a straightforward solution for small-business owners who want to access their inventory counts on the go.

Why we like it: Unlike some of its competitors, Salesbinder supports an unlimited number of locations, even in its free plan. This is a plus for businesses that store their inventory in multiple locations and have to frequently transfer items from one place to another. You can also add kitting and bundling capabilities to any paid plan for an extra $9 per month. This is an important feature for businesses that sell products, like furniture, that involve multiple parts and need to be assembled upon delivery. In terms of free features, all plans include customer relationship management (CRM) tools, packing lists, shipment tracking, reporting and stock transfers.

Why we like it: Whereas some inventory management software only accommodates 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.

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Why we like it: Backbar helps bars and restaurants prevent perishable inventory waste with tools like excess inventory reporting and recipe and drink costing. While you have to subscribe to a paid plan to get the most out of Backbar’s reporting and recipe costing features, its free plan still lets you set up order reminders, integrate with POS systems, add an unlimited number of users and upload invoices.

Why we like it: Created specifically for manufacturing companies, 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. Its “insights” dashboards are easy to read and while plans can be expensive, they aren’t as costly as some competitors. When you create a purchase order with Katana, the software will take stock of your inventory from that particular vendor and let you know if you’re missing anything. Plus, the system integrates with a range of products, including QuickBooks Online, Xero, WooCommerce and Shopify.

Why we like it: Brightpearl's inventory management capabilities go beyond the basics, making it a good fit for quickly growing retail businesses. You can create order processing workflows, manage separate shipping carriers for each sales channel, set up dropshipping rules and receive buying recommendations. Additionally, Brightpearl offers an integrated CRM solution and POS system so omnichannel businesses can sync offline and online sales. When it comes to accounting, you can either use Brightpearl’s own module or integrate with third-party products like QuickBooks and Xero.

Why we like it: 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. A unique feature of this inventory management 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.