Best Inventory Management Software for Small Businesses in 2025

Inventory management is key to keeping a small business making money and running smoothly. If you run out of items, you lose sales. To ensure proper inventory tracking, including item name is essential. Too much stock can use up your cash. Tracking inventory by hand can feel like a big problem.

Using the right inventory management system and good accounting software can help. It lets you guess what your stock levels will be at the touch of a button. You can also track inventory items without doing it all yourself. You get updates right away. Your system will work well with sales and accounting. This means you get the information you need to look at your sales data and make better choices.

In this guide, we look at some of the best inventory management software for small businesses to help run a more efficient business. We cover inFlow Inventory, Katana, Softr, Zoho, and ClickUp. The information here will help you find the tool that fits your way of working, your budget, and what your business needs. You can find apps for inventory management in the Xero App Store too. The right app makes it easy to save a lot of time and check your inventory on a smartphone.

Why Small Businesses Need Inventory Management Software

Running a small business is hard work. You have to look after many things, like sales, customer service, and keeping track of stock. If you do not have good tools for this, you could have many problems.

• Stockouts can make you lose sales.

• Overstocking means money gets stuck in your inventory.

• Manual tracking can lead to mistakes made by people.

• Without good data, it’s easy to miss chances for your business.

A strong inventory control system gives the following benefits:

• Track products and raw materials right away as you need.

• Sync with both online and offline stores at the same time.

• Get alerts when stock is low and set up automatic reorder points.

• Use the cloud to manage everything while you are out or on the go.

• Connect easily with your accounting, CRM, and eCommerce tools.

Quick Comparison of Top Tools

Best Inventory Management Software for Small Businesses

1. inFlow Inventory – User-Friendly All-in-One Tracking

InFlow Inventory is made for small businesses that want a simple and strong system. The software has a clean look that is easy to get. You and your team can use it to keep track of things without help from IT experts. The way you move around in the software is easy, so most people can use it with no trouble. This makes it a good pick if you want a good tool that works well for everyone in your team, even as you approach the finale of your business growth.

Key Features:

• You get real-time updates for your inventory fulfillment.

• Barcode scanning helps you process things fast.

• Order management for both buying and selling is included.

• You can track stock at more than one location.

• It works with QuickBooks, Shopify, Amazon, and more.

InFlow is good for small and mid-sized companies because it does not cost much and is easy to use. A business can start with simple inventory tracking. Over time, they can add things like better reports. They do not have to change to another system as they grow.

2. Katana – Best for Manufacturing SMBs

Katana is made for people who run manufacturing or product businesses. It helps you with inventory and also with managing how you make things. Katana also lets you plan what materials you need.

Key Features:

• Track your inventory and production as it happens.

• Control things on the shop floor. Get tasks for the team.

• The system orders raw materials on its own.

• Connect with your eCommerce sites and accounting tools.

• Get reports that show your costs for making things.

Why SMBs will like it:
If you make goods instead of only sell them, Katana gives you tools for automation and managing your work. You can use Katana to help keep your materials on hand. It helps you stay on track with your production. You can also fill your orders quick and not be late.

3. Zoho Inventory – Best Free Option for Growing Businesses

Zoho Inventory gives you a very good free plan. It is one of the best in the field. This is great for startups and small new businesses. People who want free inventory management software and tools, like free QuickBooks Online inventory management software, should look at Zoho too. If you want to use something with Android, that can work with Zoho Inventory. It lets you sync your inventory in many online sales channels, like Zoho Books and Zoho Commerce. As the company grows, you can pay for more features and go to better plans.

Key Features:

• Sell your products on many sites like Amazon, eBay, Etsy, and your online store Shopify.

• Set up to get alerts when your stock is low and use automated reordering.

• Manage the warehouse and all your items with ease.

• Use shipping tools to sync orders and track shipping.

• Scan items with barcodes for fast updates.

Why It’s Great for SMBs:
You can get going with Zoho at no cost. It gives you the basic tools you need at first. As your sales grow and things get busier, you can add more features. Zoho works well with its other tools like CRM, Books, and Analytics, so you get even more out of it.

4. ClickUp – Inventory + Project Management in One

ClickUp is mainly used for project and task management. But you can also set it up to track inventory. It has databases, dashboards, email features, and acts as a business operations center. Using these tools, you can make an easy and efficient system.

Key Features:

• Proactive procurement templates help you keep track of purchase orders and your stock. These templates also send you PayPal notifications.

• Proactive procurement templates keep track of purchase orders and what you have in stock. You also get notifications.

• Proactive procurement templates help you track purchase orders and what the store has. They also send Twilio notifications.

• Templates make it easy for you to track your stock.

• You also get to use tools like Zapier, Slack, and Google Sheets with the system.

ClickUp is a good choice for small and medium businesses. It brings inventory management, task work, and business planning together in one place. This means you do not need to pay for many different tools.

5. Softr – Flexible No-Code Inventory Portals

You can use the mobile app to make your own inventory tracking app. Do this in real time. You do not need to know how to code.

Key Features:

• You can make your own inventory tracking apps without any coding.

• Let your team or clients have their own permissions to use the app.

• Hook up with Airtable to see everything update right away.

• Make public or private portals. These are for your vendors or customers.

• Add custom workflows to fit what you need.

Why It’s Great for SMBs:
If you want to give your vendors or clients certain access to your inventory data, Softr is a good choice. Ready-made inventory systems do not always be flexible. Softr makes it easy to set up what you need. This means you get more control over the way people see your inventory data.

How to Choose the Right Inventory Management Software

When you pick the best tool for your small business, think about this:

1. Ease of Use – Is the system simple for your team to use? Will everyone get how it works right away?

2. Integrations – Does it work with your sales channels, accounting tools, and CRM? Can it connect to your other systems so everything is in one place?

3. Pricing – Can you start with a price that fits your budget? Is it easy to move up as your business grows?

4. Automation – Will the system save you time by giving low-stock alerts and making automatic POs? Can these features help your team and keep things running smooth?

5. Support – Is the customer service good and quick to help? Do they have a clear plan for new features and updates so you know what’s next for the product?

Conclusion

The best inventory software management software for small businesses can change based on your needs. The industry you are in, your budget, and how you work will all matter. You should look at what is most useful for your business. The right inventory software management software helps you stay on top of inventory, saves time, and fits your workflow. Picking the best inventory software management software means finding one that works well for your budget and meets all your needs.

• Choose inFlow Inventory as it is easy to use and covers all needs.

• Pick Katana when you need help with making things and keeping track of production.

• Start with Zoho Inventory if you want to save money since there is a free option.

• Go for ClickUp if you want both inventory and project planning in one.

• Use Softr if you need a portal made just for you that links with your data.

No matter what you pick, be sure to try the free trial. This helps you see if the software works well for your daily tasks. You and your wallet will feel good about it later.