The best inventory management software, whether used on its own or with a point-of-sale (POS) system, should make it easy for businesses to track products, tools, and assets from production to sale. While most free inventory programs for small businesses are more limited than their paid counterparts, I found several forever-free subscriptions with enough key features, easy-to-use interfaces, and options to upgrade.
So, if you aren’t ready to invest in an inventory management system, here are the seven best free inventory management software for small businesses to consider:
| Provider | Best for | Paid plan starts at |
|---|---|---|
| Odoo Inventory | Overall free inventory management software | $9.10 per month |
| Square | All-in-one software for retailers | $49 per month
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| Zoho Inventory | Large inventories | $39 per month |
| Toast | All-in-one software for restaurants | $69 per month |
| Katana MRP | Small manufacturers | $299 per month |
| Sortly | Mobile app | $49 per month |
| Backbar | Small restaurants and bars | $99 per month |
Note: All of the products on this list include the following in their free plans: real-time tracking, inventory counts, barcode scanning, product variants, basic reporting, customer shipping details, a knowledge base, and (in most cases) support for multiple locations.
- Free inventory management software compared
- How I chose the best free inventory management software
- Free inventory management workbook
- Odoo: Best overall free inventory management software
- Square: Best free all-in-one retail inventory software
- Zoho: Best free software for managing large inventories
- Toast: Best for all-in-one free inventory management for restaurants
- Katana MRP: Best for small manufacturers
- Sortly: Best free inventory app
- Backbar: Best free inventory management software for small restaurants and bars
- Benefits of an inventory management system (and how it works)
- Free vs paid inventory management software
- How to choose the best free inventory management system
- Frequently asked questions (FAQs)
- Bottom line
Free inventory management software compared
| Our Score (out of 5) | Users | Items/Products | Low Stock Alerts | Integrations | |
|---|---|---|---|---|---|
| Odoo | 4.6 | Unlimited | Unlimited | ✓ | ✓ |
| Square | 4.58 | Unlimited | Unlimited | ✓ | ✓ |
| Zoho | 4.48 | 1 | Unlimited | ✓ | ✓ |
| Toast | 4.47 | 2 | Unlimited | ✓ | ✓ |
| Katana | 4.25 | Unlimited | 30 | ✓ | ✓ |
| Sortly | 3.96 | 1 | 100 | Paid plans only | ✓ |
| Backbar | 3.90 | Unlimited | Unlimited | ✓ | ✓ |
How I chose the best free inventory management software
I researched and evaluated a variety of inventory management software that offer free plans. Using a weighted rubric, I compared pricing and value, inventory features, ease of use, and my own expert evaluation. Learn more about my methodology below.
Why you can trust Fit Small Business
Free inventory management workbook
If you only need a spreadsheet for basic stock counts, start with our free inventory workbook. If you need live inventory tracking, low-stock alerts, barcode scanning, integrations, or sales syncing, continue to the software reviews below.
Download our free inventory management spreadsheet.
Odoo: Best overall free inventory management software
Odoo, a fully open-source inventory system, takes the top spot for free small business inventory software. It’s also completely unlimited, making it great for small businesses with huge inventories. Odoo features a double-entry inventory tracking system and an array of customizable reporting functions. I particularly like the range of automated features that Odoo offers in its free plan, including everything from custom alerts to purchase orders.
Odoo earned 4.6 out of 5 in my evaluation. It’s interesting that you need a paid plan to get invoicing tools when everything else in Odoo’s inventory tracking system is free. It also only has email and forum support, along with training videos while other competitors offer live support. Real-world customers like Odoo, but it does not rate as highly as Square or Zoho.
Who should use Odoo
Businesses looking to automate most of their inventory tasks
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| Other Free Features | |
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When to upgrade to a paid plan
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Paid plans start at $9.10 per month
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Odoo offers many business solutions in addition to inventory, and it makes our lists of the following:
- Best Overall Inventory Management Software
- Best Open Source POS
- Best Warehouse Inventory Software
- Best Open Source CRM
- Best Inventory Software that Integrates with QuickBooks
Square: Best free all-in-one retail inventory software
Square is best known for its POS system for retailers and restaurants, but it also offers incredible inventory management tools in all of its POS accounts. Every Square for Retail account includes live inventory tracking as they make sales, ecommerce integrations, mobile capabilities, POS, order management, product variants, and more.
Like Zoho, Square has an excellent mobile app, where you can conduct sales and also scan items and perform inventory counts. But what I like about Square the most is that it comes with a free integrated ecommerce website builder, Square Online, so your inventory is updated in real time with your physical store.
Square earned an overall score of 4.58 out of 5 on my evaluation, just below Odoo, which has more inventory management features and can be integrated with other business solutions, whereas Square is exclusive to other Square integrations.
Who should use Square
Small businesses looking for an all-in-one POS and inventory provider
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When to upgrade to a paid plan
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Paid plans start at $49 per month for both Retail and Restaurants (30-day free trial for paid plans)
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Square POS, along with Square for Retail and Square for Restaurants, are among our most popular POS providers for small businesses. They regularly rank among our lists of:
Zoho: Best free software for managing large inventories
Along with allowing for unlimited products, a strong range of integrations, and features like low stock alerts, kitting, and bundling options, Zoho Inventory’s free plan also has shipping tools, you can print packing slips and generate discounted shipping labels from major logistics providers like the United States Postal Service (USPS) and UPS right from your dashboard.
Like Odoo, Zoho offers great flexibility because it’s compatible with other business solutions. In my review, I even found Zoho to have a wider range of free inventory features than Odoo, including a mobile app with excellent user reviews. That said, Zoho’s free plan only supports a single user and could be better with more automations, especially when managing large inventory volume. Zoho earned a score of 4.48 out of 5.
Who should use Zoho Inventory
Growing businesses on a budget that need advanced tools to manage large inventories
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When to upgrade to a paid plan
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Paid plans start at $39 per month with monthly billing
(Discounts available with annual payment)
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Zoho offers a suite of different products for various small business needs. Some of its software are included in our list of the following:
- Best Jewelry Inventory Software
- Best Sales Forecasting Software Tools
- Best Ecommerce CRM Software
- Best Ecommerce Accounting Software
Toast: Best for all-in-one free inventory management for restaurants
Toast is Square’s counterpart on this list as an all-in-one best free inventory management software, this time for restaurants. It’s as feature-rich as Odoo, but with built-in hardware and payment tools. Toast offers a variety of restaurant-specific inventory tools in its free plan, such as real-time ingredient-level tracking, recipe costing, menu management, and more.
With an overall score of 4.47 out of 5, Toast is the best option if you’re looking for an all-in-one POS to manage your growing restaurant business. Despite integration limitations with other POS systems, small businesses, particularly those just starting up, will get the most out of an all-in-one solution and Toast outdid itself with its starter hardware kit options.
However, like Square, using Toast will limit your software flexibility options including payment processing. And one big downside to Toast’s free plan is the expensive transaction fee. So, if you run a low-margin quick-service restaurant, Backbar is the better choice.
Who should use Toast
Full-service restaurants and food retailers looking for an all-in-one inventory management solution
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When to upgrade to a paid plan
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*Paid plans start at $69 per month
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Katana MRP: Best for small manufacturers
Katana MRP is a cloud-based manufacturing resource planning (MRP) system built for makers, workshops, and small manufacturers that want full-scale inventory and production tools without upfront cost. Its free plan gives you access to almost all of Katana’s premium features, such as production planning, shop floor control, material requirements, batch tracking, and live inventory, limited only by your catalog size (30 SKUs) and three locations.
I like that Katana’s free plan isn’t a stripped-down version. You can still manage bills of materials, track raw materials and finished goods, and even sync orders from Shopify, WooCommerce, or QuickBooks Online. The 30-SKU cap is a real constraint for large catalogs, but for small-batch manufacturers or custom producers, it’s more than enough to start with a professional-grade MRP platform.
Who should use Katana MRP
Small manufacturers and workshops that need full production management tools but have a small catalog (up to 30 SKUs)
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When to upgrade to a paid plan
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Paid plans start at $399 per month (Discounts available with annual payment).
Katana is unique because its free plan already unlocks every feature and add-on (plus API access), but you’re capped at 30 SKUs and three locations. If you outgrow that SKU limit, the Standard tier gives you unlimited SKUs (still three locations) but actually fewer included features than Free, such as core operations — advanced insights, multicurrency, custom user permissions, and barcode scanning — but no API and none of the high-end ops tools.
To regain API access and add the heavyweight features, such as full traceability, planning & forecasting, and warehouse management plus 10 locations, you’ll need to step up to the Professional plan. The next higher plan, Professional Plus, lifts locations to unlimited and adds premium support/management.
If you can operate within 30 SKUs and 3 locations, stay on Free to keep all the bells and whistles. Move to Standard only when you need unlimited SKUs, and to Professional when you also need API + advanced ops.
Sortly: Best free inventory app
Sortly is a cloud-based inventory management platform that provides activity tracking, multilocation tracking, barcoding, and audit trails. Its noteworthy feature, however, is its built-in barcode and QR scanner mobile app that works even in offline mode.
Note that Zoho also has an offline mode to its mobile app, but its free plan is limited to only two locations, unlike Sortly. You can scan incoming and outgoing inventory even when your phone app doesn’t have a signal. Sortly will sync automatically as soon as you’re back online. Its offline abilities, paired with its multilocation tracking, make Sortly ideal for on-the-go inventory management across multiple locations.
That said, I found the limited inventory support and lack of integration in the free plan essentially restricted Sortly’s multi-location capabilities. If you’re open to using an all-in-one option, Square is a great alternative.
Who should use Sortly
Businesses looking for mobility in managing inventory
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When to upgrade to a paid plan
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Paid plans start at $49 per month (Discounts available with annual payment)
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Backbar: Best free inventory management software for small restaurants and bars
Backbar’s free plan is well-suited for one-location small to midsize bars and quick-service restaurants that need a straightforward, dedicated solution for managing their inventory and menu items. The free plan offers essential inventory management tools and purchasing functionality. It comes with a preexisting database of alcohol products and beverages, and it supports offline inventory mode.
With a score of 3.9 out of 5, Backbar is a great inventory management software choice if you’re just starting up. The paid plan offers more features such as unlimited recipe builder and recipe costing. However, you’ll need to pay over $100 to get cost variance detailed advanced reporting tools. Consider Toast as an alternative.
Who should use Backbar
Quick-service restaurants and small bars looking for inventory software that can work with their current POS system
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When to upgrade to a paid plan
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Paid plans start at $99 per month (Discounts available with annual payment)
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Benefits of an inventory management system (and how it works)
Managing inventory isn’t just about counting what’s on the shelf; it’s about keeping your business efficient, profitable, and ready to grow. The right inventory management system helps you stay organized, cut down on costly errors, and make smarter decisions about what to buy and sell.
What is inventory management software?
Inventory management software is a digital system that helps businesses monitor and control stock, from raw materials and purchase orders to finished goods and sales. Instead of relying on spreadsheets or manual counts, it tracks product movements automatically, showing what’s in stock, what’s selling, and what needs restocking.
How it works
Most inventory systems sync with your POS, ecommerce, or accounting tools. When a sale or purchase happens, your quantities update in real time. Many programs also include barcode scanning, reporting dashboards, and low-stock alerts to help you reorder before you run out. This automation reduces errors, saves time, and improves visibility across locations or sales channels.
Why it matters for small businesses
An inventory management system streamlines day-to-day operations, saves money, and supports growth. With one in place, you can:
- Avoid stockouts and overstocks: Real-time updates keep your counts accurate.
- Save time on manual tracking: Automation replaces repetitive spreadsheet work
- Improve cash flow: See which items move fast and which tie up capital.
- Forecast smarter: Reports reveal sales trends and seasonal demand.
- Enhance customer experience: Always know what’s available to fulfill orders on time.
Even a free system can make a big difference, giving small businesses the control and insight needed to scale efficiently without overspending.
Methodology: How I evaluated the best free inventory software
Free vs paid inventory management software
Free inventory management software is best for starting out, but growing businesses should compare upgrade costs before committing to a system. A free plan can work well for basic stock tracking, but you may need a paid plan once you add more locations, users, sales channels, or reporting needs.
| Free inventory software is enough if... | Upgrade to paid if... |
|---|---|
| You have one location | You manage multiple warehouses or stores |
| You only need basic stock counts | You need forecasting, automation, or purchase orders |
| You have a small team | You need more users and role permissions |
| You sell on one or two channels | You sell across ecommerce, POS, marketplaces, and wholesale |
| You can work around reporting limits | You need custom reports, COGS, margins, and vendor performance |
| You have simple products | You need serial tracking, batch tracking, BOMs, or kitting |
How to choose the best free inventory management system
You can choose from a number of free inventory management software options — to find a solution that matches your business, assess your needs, current systems, and future plans for growth. Make sure to test the systems as well.
Step 1: Determine your needs
Create a list of your must-have features. This should include the number of users, products, orders, and locations the software could accommodate on its free plan.
For this list, also consider the type of inventory you’re tracking and what other information you need to track alongside it — variants, purchase orders, vendor information, individual parts, location within your warehouse, sales or use history, etc. This is where you may need to break your list into must-haves and nice-to-haves. After all, we’re looking at free software, so there will be some limitations. Just consider what you are and aren’t willing to compromise on.
If the answer is you don’t want to compromise on anything, consider choosing from our list of top paid inventory software. There are many options for under $100 per month.
Step 2: Consider any existing systems and software
If you have any existing software, like QuickBooks, an online store, or an order or invoicing system, ideally, your new inventory software can work with it. Having data stored in two systems that don’t talk to each other can result in a lot of time spent manually reconciling records and opening yourself up to a lot of potential human error.
Your inventory software should at least have a one-way push or pull integration (where your inventory data will sync with your other systems, or your other systems will sync with your inventory system); even better would be a two-way sync where data is automatically pushed between both systems.
Related: Best Inventory Software that Integrates with QuickBooks
In addition to software, consider any workflows or procedural systems you may have in place. For example, your inventory receiving process, counting cycles, reporting, or restocking process. Your new software should make these workflows easier — not require you to do additional manual data collection or construct workarounds.
Step 3: Create a shortlist and test for yourself
Once you know what features you need and how they should fit into your day-to-day operations, consider five to 10 systems that meet your basic requirements. Then, depending on your preference, either sign up and test-drive each software for yourself or inquire about a professional demonstration.
One of the benefits of free software is that anyone can sign up and use it, so you have nothing to lose by trying it out.
In my years of testing software, the general trend I’ve noticed is that the easier it is to use, the more limited it may be in terms of features or customization capabilities. On the other hand, incredibly feature-rich software can often have a steep learning curve. Consider which is more important to you — after all, a fancy feature is only helpful if you’re actively using it.
Step 4: Take into account future growth
Finally, before settling on software, consider where your business will be six months, a year, and three years from now. Basic inventory tracking software is easy and fast to set up and while you can always switch inventory systems, it is a giant pain to do so. Try to choose a software that can grow with you.
Frequently asked questions (FAQs)
Here are some of the most common questions I encounter about free inventory management for small businesses:
What is the best free inventory management software?
Odoo is the best free inventory management software overall because it supports unlimited users, products, locations, and transactions. Square is better for retailers that need POS tools, while Zoho Inventory is better for ecommerce sellers managing large product catalogs.
Is there really free inventory management software?
Yes. Several inventory management systems offer free plans, but they usually limit users, orders, locations, reports, integrations, or support. Free plans work best for small businesses with basic inventory needs.
What is the best free inventory app?
Sortly is one of the best free inventory apps for mobile inventory tracking because it focuses on visual item records, barcode scanning, and on-the-go counts. Square and Zoho also offer strong mobile apps for businesses that need POS or ecommerce inventory tools.
What is the best free inventory software for retail?
Square is the best free inventory software for many small retailers because it includes POS tools, unlimited items, stock tracking, sales reports, and a free online store.
What is the best free inventory software for restaurants?
Toast is the best free inventory option in this guide for restaurants because it combines restaurant POS tools with inventory support. Backbar is better for bars and restaurants that need beverage or ingredient tracking.
When should I upgrade from free inventory software?
Upgrade when you need more users, more locations, higher order limits, purchase orders, forecasting, advanced reports, vendor management, barcode label printing, or stronger ecommerce and accounting integrations.
Can I use a spreadsheet instead of inventory software?
Yes, a spreadsheet can work for very small businesses with simple stock counts. Inventory software is better if you need real-time updates, barcode scanning, low-stock alerts, POS syncing, ecommerce integrations, or multiple users.
Bottom line
Whether you’re just starting out or running a fully established business, managing your inventory should be a key part of your growth strategy. Investing significantly in a software provider will likely suffice, but a feature-rich free version can give your business the best value, depending on what you need.
There are surprisingly many available options in the market, but I found Odoo to be the best free software to manage inventory for small businesses. Its open-source, totally free system works great for small or large inventories and multiple locations, and it has an excellent set of features. You can even integrate it with your other software. Visit Odoo and try it for free today.
