Best Stock Management Software for Small Business in 2026

Stock management software automates the tracking of inventory from purchase to sale, giving you real-time visibility into what you have, what you need, and what's costing you money. For UK businesses, the right system must also handle compliance requirements like Making Tax Digital, integrate with accounting platforms such as Xero or Sage Accounting, and scale as your operation grows.

This guide compares seven stock management solutions for small businesses in the UK, with particular attention to the differences between general retail tools and specialist healthcare systems. You'll learn what features matter most, how to evaluate costs, and which platforms suit your specific sector.

Whether you run a pharmacy, clinic, retail shop, or manufacturing operation, you'll find practical guidance on choosing medical software or general inventory systems that fit your needs.

What is Stock Management Software?

Stock management software is a digital system that tracks inventory across your entire business, from the moment you order from suppliers to the point of sale or clinical use. Unlike spreadsheets that require manual data entry, these platforms automate the recording of stock movements, generate purchase orders when levels fall below thresholds, and provide real-time visibility into what you have on hand.

At its core, stock management software answers three questions:

1. What do I have?
2. Where is it?
3. How much is it worth?

For small businesses, the distinction matters. A simple stock control tool might suffice if you're managing a single location with straightforward products. But if you're running a pharmacy with expiry date tracking requirements, a clinic with clinical stock usage tied to patient records, or a retail business selling across multiple channels, you need fuller inventory management capabilities.

Cloud-based systems have become the standard for small businesses because they eliminate server maintenance costs, enable mobile access from anywhere, and provide automatic updates:

• You can check stock levels from your phone.
• Approve purchase orders while away from the office.
• And give suppliers access to place orders directly into your system.

The best platforms integrate with your existing tools. That means connecting to Xero or Sage for financial reporting, linking to point-of-sale systems for retail, or synchronising with practice management platforms like Medesk for healthcare settings. Without this integration, you're back to manual data entry, defeating the purpose of automation.

Stock Control vs. Inventory Management: Understanding the Difference

Stock control and inventory management are often used interchangeably, but they represent different levels of sophistication. Understanding this difference helps you choose software that matches your actual needs rather than paying for features you won't use or settling for a system that can't grow with you.

1. Stock control refers specifically to tracking what you have and where it's located. It's the basic function of knowing quantities on hand, recording when items arrive from suppliers, and noting when they're sold or used. If you're managing finished goods in a single warehouse or stockroom, stock control functionality might be sufficient.
2. Inventory management encompasses the entire flow of goods through your business. It includes raw materials, work in progress, and finished goods. For manufacturers using platforms like Katana, this means tracking components, monitoring production stages, and managing bill of materials. For healthcare providers, it means linking consumables to patient appointments, tracking expiry dates, and managing dispensary stock.

Full inventory management systems also include demand forecasting, supplier management, and profitability analysis. They answer questions like:

1. Which products generate the most profit?
2. Which suppliers are most reliable?
3. How can we reduce carrying costs without risking stockouts?

These insights become valuable as your small business scales and cash flow management becomes more complex.

Most small businesses start with basic stock control and graduate to comprehensive inventory management as they grow. The key is choosing software that can make that transition with you, avoiding the costly and disruptive process of switching platforms entirely.

Key Features to Look for in Stock Systems

Choosing stock management software for your UK small business requires focusing on features that directly address your operational needs and compliance obligations. Not every system offers the same capabilities, and paying for unused functionality wastes money just as surely as choosing inadequate software.

Automated reordering and reorder points are fundamental. The system should alert you when stock levels fall below defined thresholds and ideally generate purchase orders automatically. This prevents stockouts without requiring you to manually monitor hundreds or thousands of items. Look for platforms that learn from your sales patterns to suggest optimal reorder points rather than forcing you to guess.

Barcode scanning dramatically reduces manual data entry errors and speeds up stocktakes, receiving deliveries, and processing sales. Most modern systems support scanning via smartphones, eliminating the need for expensive dedicated hardware. For healthcare providers, this connects to clinical record-keeping, making it possible to scan items used during patient appointments.

Making Tax Digital compliance is non-negotiable for UK businesses. Your stock management software must integrate seamlessly with MTD-compatible healthcare accounting software like Xero or Sage. This ensures VAT calculations are accurate, financial data flows automatically to HMRC-approved systems, and you avoid penalties for non-compliance. The integration should be real-time or near-real-time, not a weekly batch export that leaves gaps.

Multi-location support matters if you operate from more than one site or plan to expand. The system should track stock at each location separately while giving you consolidated visibility across the business. For clinics with multiple treatment rooms or retail businesses with a shop plus warehouse, this prevents the confusion of not knowing where specific items are physically located.

Integration with existing systems determines whether your software saves time or creates new administrative burdens. Check compatibility with your point-of-sale system, accounting platform, e-commerce websites, and any industry-specific tools you use. For healthcare practices, integration with your practice management system like Medesk is critical because it ties supplier order management to patient care workflows.

Real-time reporting and dashboards provide the visibility you need for quick decisions. You should be able to see current stock levels, identify slow-moving items, analyse inventory turnover, and spot trends without running complex reports.

Mobile access extends this visibility beyond your desk, letting you check stock status or approve orders from anywhere.

For healthcare-specific operations like pharmacies and clinics, additional requirements include:

• expiry date tracking;
• batch number recording for audit trails;
• and the ability to link stock usage to patient records.

Medesk's Stock Control module addresses these needs by connecting dispensary stock control with patient appointments, enabling automated write-offs during consultations, and tracking clinical stock usage for both compliance and profitability analysis.

7 Best Stock Management Software for Small Business

Each platform below serves different business types and scales. We've focused on solutions that work well for UK small businesses, with particular attention to healthcare versus general retail needs.

1. Zoho Inventory

Zoho Inventory is a comprehensive cloud-based system popular among UK e-commerce and multi-channel retailers. It handles order management across multiple sales channels, integrates with major platforms like Shopify and Amazon, and connects to Zoho's broader suite of business tools.

Pros:

• Free plan available for very small operations (up to 50 orders per month)
• Strong integration with e-commerce platforms and marketplaces
• Connects to both Xero and Sage Accounting for UK compliance
• Multi-warehouse support with transfer orders between locations
• Decent mobile app for stock checks and basic management

Cons:

• Limited functionality on free tier; most small businesses need paid plans
• Can become expensive as you add warehouses and user seats
• Not designed for healthcare-specific needs like expiry tracking or clinical usage
• Reporting can be complex to configure for specific business questions
• Customer support response times vary significantly

Best for: E-commerce retailers, multi-channel sellers, small businesses with straightforward inventory needs.

Pricing: Free for basic use; paid plans from £49/month for 500 orders, scaling up based on volume and features.

2. inFlow Inventory

inFlow positions itself as inventory management software specifically for small businesses that have outgrown spreadsheets but don't need enterprise complexity. It's particularly strong for product-based businesses with physical stockrooms.

Pros:

• Desktop and cloud versions available, giving offline access options
• Excellent barcode scanning support with mobile apps
• Strong purchase order and supplier management features
• Good reporting on stock levels, inventory turnover, and profitability
• One-time purchase option for desktop version (in addition to subscription)

Cons:

• Integration options are more limited than competitors
• Multi-location support only available on higher-tier plans
• No built-in e-commerce or point-of-sale functionality
• Interface feels dated compared to newer cloud-native platforms
• Not suitable for healthcare environments with clinical record requirements

Best for: Small retail businesses, wholesalers, businesses with complex supplier relationships.

Pricing: From £59/month for the Entrepreneur plan; desktop version available for one-time purchase around £399.

3. Katana

Katana specialises in manufacturing inventory management, tracking raw materials, work in progress, and finished goods. It's designed for small manufacturers and businesses that assemble products rather than simply reselling finished goods.

Pros:

• Excellent for tracking bill of materials and production workflows
• Real-time inventory visibility across production stages
• Integrates with Xero, QuickBooks, and Shopify
• Visual production planning tools that are intuitive to use
• Good for small-scale food production, cosmetics, and assembled goods

Cons:

• Expensive compared to simple stock control systems
• Overkill for businesses that don't manufacture or assemble products
• Limited warehouse management features compared to retail-focused platforms
• Steeper learning curve than simpler systems
• Not designed for service businesses or healthcare

Best for: Small manufacturers, food producers, cosmetics makers, businesses with assembly operations.

Pricing: From £129/month for the Essential plan, scaling based on manufacturing complexity.

4. Square for Retail (Square POS)

Square's point-of-sale system includes inventory management capabilities suited to physical retail locations. It's popular among UK shops, cafes, and service businesses that need combined payment processing and stock tracking.

Pros:

• Seamless integration between sales and inventory (since it's the same system)
• No monthly fee for basic plan; you pay transaction fees instead
• Easy to set up with minimal technical knowledge required
• Good for businesses with straightforward stock control needs
• Mobile point-of-sale works well for pop-up shops and events

Cons:

• Transaction fees add up quickly (1.75% per transaction for chip and PIN)
• Limited multi-location support on lower-tier plans
• Not designed for complex inventory with variants or manufacturing
• Reporting is basic compared to dedicated inventory platforms
• No healthcare-specific features for clinical environments

Best for: Physical retail shops, cafes, service businesses with product sales, market traders.

Pricing: Free basic plan with transaction fees; Square for Retail from £29/month plus transaction fees.

5. Stockify Inventory

Stockify is a straightforward web-based stock control system aimed at small UK businesses that need basic tracking without complexity. It focuses on doing core functions well rather than offering extensive features.

Pros:

• Simple interface with minimal learning curve
• Affordable pricing for very small businesses
• Mobile-responsive design works on any device
• Covers essential functions: stock in, stock out, low stock alerts
• UK-based company with understanding of local business needs

Cons:

• Very basic feature set compared to competitors
• Limited integration options with accounting or e-commerce platforms
• No barcode scanning support
• Reporting capabilities are minimal
• Not suitable for businesses planning significant growth

Best for: Sole traders, micro businesses with simple stock needs, those wanting to move off spreadsheets affordably.

Pricing: From £19/month for small inventories; scales with number of products tracked.

6. Sortly

Sortly takes a visual approach to inventory management, letting you photograph items and organise them into folders. It's designed for businesses that need to track equipment, assets, and inventory without complex workflows.

Pros:

• Visual interface makes finding items intuitive
• QR code and barcode scanning included
• Mobile-first design works excellently on smartphones and tablets
• Good for tracking equipment across multiple locations
• Simple to set up and start using immediately

Cons:

• Too simplistic for businesses with complex inventory workflows
• No purchase order management or supplier integration
• Limited financial reporting and cost tracking
• Not designed for high-volume sales environments
• No healthcare-specific compliance features

Best for: Service businesses tracking equipment, small operations with visual inventory needs, asset tracking.

Pricing: Free basic plan; paid plans from £39/month for advanced features.

7. Medesk

Medesk is a complete practice management platform for UK healthcare providers, with integrated medical inventory management software designed specifically for clinics, pharmacies, and private practices. Unlike general stock systems, Medesk connects inventory directly to patient care workflows.

Pros:

• Dispensary stock control integrated with patient records and appointments
• Automatic write-off of consumables during patient consultations
• Expiry date tracking and alerts for medication and clinical stock
• Repeat prescription management linked to inventory levels
• Clinical stock usage tracking for profitability analysis by procedure
• Integration with accounting systems like Xero for financial reporting
• Supplier order management within the same platform as bookings and clinical notes
• CQC and GDPR compliance built into the system
• Real-time visibility into stock costs and sales for accurate reporting

Cons:

• Healthcare-specific: not suitable for retail or manufacturing businesses
• Requires commitment to full practice management system, not standalone inventory
• Pricing reflects comprehensive functionality beyond just stock control
• Implementation requires some setup time and staff training
• Overkill if you only need basic inventory without clinical integration

Best for: Private clinics, pharmacies, GP surgeries, dental practices, physiotherapy clinics, any healthcare provider that dispenses medications or uses clinical consumables.

Pricing: Available as part of Medesk's practice management platform; contact for healthcare-specific pricing based on practice size and features needed.

Medesk stands apart from general stock management software because it understands healthcare workflows:

For practices that bill for procedures including consumables, Medesk calculates true profitability by tracking exactly what stock was used. You can generate reports showing which treatments are most profitable after accounting for material costs, something generic inventory systems can't provide because they don't understand clinical workflows.

How to Switch from Spreadsheets to Software

Most small businesses complete migration in two to four weeks while continuing normal operations:

1. Start by cleaning your existing data. Review your spreadsheets and remove duplicates, correct obvious errors, and standardise naming conventions. If you've been calling the same item "Paracetamol 500mg", "Paracetamol", and "Para 500" in different places, settle on one consistent name. This preparation prevents migrating messy data that causes problems later.
2. Export your current inventory list with essential fields:
   • item name;
   • SKU or product code;
   • current quantity;
   • unit cost;
   • and supplier information.

3. Set up your new system's structure before importing data. Create categories, define locations, establish reorder points, and configure integrations with your accounting software. Taking time here prevents having to reorganise everything after your data is already loaded.
4. Import your data in stages rather than everything at once. Start with your top-selling or most critical items, typically following the 80/20 rule where 20% of products account for 80% of value. Test the system with this subset, process some transactions, and verify everything works correctly before importing the full inventory.
5. Run parallel systems briefly if you're concerned about data continuity. Keep your spreadsheet updated while also using the new software for one or two weeks. This overlap lets you verify the software is tracking correctly and gives staff confidence in the new system.

6. Train staff thoroughly on the workflows that affect them. Reception staff need to know how to check stock during patient bookings. Clinicians should understand how to record consumables used during appointments. Practice managers require training on running reports and managing suppliers. Most platforms, including Medesk, provide documentation and support during this implementation phase.
7. Start with core functions and add complexity gradually. Use the system for basic stock tracking first, then add barcode scanning, then enable automated reordering. Trying to implement every feature simultaneously overwhelms staff and increases the chance of errors. Automation should enhance your workflow, not disrupt it entirely.
8. Schedule a comprehensive stock take immediately after going live with your software. Physical counts provide a clean starting point and help identify any import errors. Mark this as your baseline and reconcile regularly thereafter to catch discrepancies early.

Ready to Move Beyond Spreadsheets?

Selecting the best stock management software for small business success means looking beyond price tags to evaluate scalability, compliance, and integration capabilities. For clinics, pharmacies, and private practices, inventory management can't be separated from patient care. You need stock systems that understand clinical workflows, track expiry dates for regulatory compliance, and link consumables directly to patient records. Generic retail platforms weren't designed for these requirements and force awkward workarounds.

Medesk fully integrates dispensary stock control, repeat prescription management, and clinical stock usage tracking with your appointment system, patient records, and financial reporting. Your team can check medication availability during consultations, automatically write off consumables used in procedures, and generate accurate profitability reports that account for material costs.

The platform connects seamlessly with UK accounting systems like Xero, ensuring Making Tax Digital compliance without double-entry. Supplier order management, expiry date alerts, and comprehensive audit trails support CQC inspections and internal quality processes.

If you're ready to replace spreadsheets or upgrade from a generic inventory system to one built for healthcare, explore how Medesk's Stock Control module transforms practice operations.

Frequently Asked Questions

1. What is the best stock management software for small business?

For general retail and e-commerce, Zoho Inventory offers strong multi-channel capabilities and accounting integration. Healthcare providers including clinics and pharmacies should consider Medesk because it connects inventory to patient care workflows, handles expiry tracking, and supports clinical compliance requirements. Manufacturing businesses benefit from Katana's production-focused features, while simple retail operations might find Square for Retail or inFlow sufficient.

2. Is Zoho Inventory really free?

Zoho Inventory offers a free plan, but it's limited to 50 orders per month and one warehouse, making it suitable only for very small operations just starting out. Most small businesses quickly exceed these limits and need to upgrade to paid plans starting at £49/month.

3. What is the 80/20 rule in inventory?

The 80/20 rule (Pareto principle) suggests that approximately 80% of your sales value comes from 20% of your inventory items. Stock management software helps identify these high-value products through sales analysis and inventory turnover reporting. You can then focus attention on ensuring these critical items are always in stock, have optimal reorder points, and receive priority during stock takes.

4. Can I use a spreadsheet for inventory?

Technically yes, but it's impractical as your business grows and creates significant risks. Spreadsheets require manual data entry for every transaction, creating opportunities for human error. They don't provide real-time visibility, can't automatically generate purchase orders, and fail to integrate with accounting software for MTD compliance.

5. How much does stock management software cost?

Pricing varies widely based on features and business size. Basic cloud-based systems start around £19-£30 per month for very small inventories. Mid-range solutions with more features, better integration, and multi-location support typically cost £50-£150 per month. Comprehensive platforms for healthcare or manufacturing with specialised features can reach £200-£500 monthly, though this usually includes additional functionality beyond inventory.