3rd Party Inventory Counting Services vs. Automated Inventory Software: Which Delivers Better Value?

Key Takeaways:

Automation offers long-term savings. While outsourcing works for occasional audits, automated inventory software delivers better value through continuous accuracy and scalability.
Outsourcing works best for limited use. Third-party services are ideal for infrequent or complex audits but become costly and inefficient with regular use.
Real-time tracking improves control. Barcode inventory software minimizes human error and keeps your stock data live and accessible across devices.
Upfront costs pay off quickly. Inventory apps and scanners may require an initial investment, but they flatten annual spend and scale with your business.

Are third-party inventory counting services draining your budget, or could automated inventory tracking software provide a smarter, cost-effective alternative? As small businesses increasingly seek efficiency and savings, understanding the real costs and benefits of both options is crucial.

In this post, we’ll compare outsourced inventory audits with automated in-house systems, helping you decide which option offers better long-term value, efficiency, and scalability.

Third-Party Inventory Counting Companies

What They Offer

Third-party stocktaking services focus on performing precise physical stock audits. Typically, they deploy trained auditors who methodically count every item, identify discrepancies, and compile comprehensive inventory reports. These services usually include:

Comprehensive physical inventory counts conducted by trained professionals
Specialized expertise for high-value, hazardous, or regulated stock
Detailed reports highlighting discrepancies, inventory shrinkage, and other critical issues
Consulting and advisory services on improving inventory management processes.

These companies appeal especially to businesses lacking internal staffing resources or those conducting infrequent but large-scale inventory audits.

Inventory Counting Services Cost

Full-service inventory counting companies typically charge either hourly or per-item rates, depending on the complexity and volume of your inventory. According to ZipRecruiter, the average hourly rate of an inventory cycle counter is around $16/hour.

It's important to note that these are wages for individual employees. Third-party inventory counting services may charge higher rates to cover additional costs such as overhead, equipment, travel fees, and profit margins. They might charge clients anywhere from $30 to $60 per hour per auditor, depending on factors like location, complexity of the inventory, and additional services provided.

So, a typical audit for a small-to-medium-sized business (SMB) can range from $500 to $2,500 per session, depending on the size and complexity of their inventory.

Embracing Automation – Small Business Inventory Software with Barcode Scanning

Core Functionality of Barcode Inventory Software

Automated inventory software offers an effective alternative by automating and simplifying inventory management through barcode scanning technology. Key features include:

Real-time inventory tracking: Every item movement—be it a sale, return, or restock—is updated instantly across your system, minimizing human error and delays.
Barcode scanning: Simplifies data entry and enhances accuracy by eliminating manual input. Employees can scan items quickly, reducing processing times during stock counts, shipping, and receiving.
Automated transaction logging: Each transaction is automatically logged and linked to relevant documents and users, helping you maintain a reliable audit trail.
Accounting integration: Platforms like HandiFox Online sync directly with software like QuickBooks, reducing double-entry and improving financial accuracy.
Multi-device cloud accessibility: Monitor and manage inventory from any location using smartphones, tablets, or desktops. Perfect for teams spread across multiple warehouses or working remotely.

The Average Monthly Price for Small Business Inventory Management Apps

The average monthly cost of online inventory management software in the U.S. varies depending on the features, scalability, and target business size. Here's a comparison of several popular platforms (зricing data is current as of May, 2025):

Sortly: starting price – $24/month, best for micro to small businesses
Zoho Inventory: starting price – $29/month, best for small to medium businesses
HandiFox Online: starting price – $39/month, best for small to medium businesses
SOS Inventory: starting price – $65/month, best for small businesses
Finale Inventory: starting price – $99/month, best for growing SMBs
inFlow: starting price – $149/month, best for wholesale and manufacturing
Fishbowl Inventory: starting price – $349/month, best for medium businesses
Cin7: starting price – $349/month, best for retail, wholesale, and eCommerce

Based on that list, the average monthly price is around $137.88.

Hardware Essentials: Barcode Scanners (Top Picks for 2025)

For barcode-based inventory systems, reliable scanning hardware is essential. We’ve compiled a guide on the best barcode scanners for small businesses in 2025. These three models stand out as great value for money options:

Zebra LS2208: priced at approximately $150, supports 1D barcodes, uses wired USB connectivity, and is best suited for retail, healthcare, and light warehouse environments.

Opticon OPN 2006: costs around $190, supports 1D barcodes, connects via Bluetooth, and is ideal for mobile businesses and field service operations.

Socket Mobile S740: available for under $400, scans both 1D and 2D barcodes, uses Bluetooth connectivity, and offers a flexible solution for businesses with diverse scanning needs.

These scanners, available through major online retailers like Amazon and directly from manufacturers, range from $150 to $400, depending on the model and features. You will need at least a couple for auditing and other inventory management processes.

Cost and Value Comparison – Service Fees vs. Software Subscription & Scanners

Investment Breakdown: Stocktaking Services

At a minimum, a business should aim to perform at least two full physical counts annually, preferably with additional spot or cycle counts throughout the year to maintain accuracy:

Auditor rate: ~$45/hour (on average for third-party services)
Hours per auditor per session: 8 hours
Number of auditors per session: 2
Number of sessions per year: 2
Total annual cost: 2 auditors × 8 hours × 2 sessions × $45/hour = $1,440 per year.

Note: This does not include potential travel expenses, setup fees, or downtime costs. It doesn’t cover additional audits (cycle count), which could amount to another $1500 throughout the year.

Pros and Cons of Inventory Counting Companies

Pros:

High precision and accuracy provided by trained professionals.
No requirement to allocate internal staff resources.
Effective for infrequent, large-scale audits.

Cons:

Third-party services can quickly become expensive with frequent usage and lack real-time inventory management.

Investment Breakdown: Inventory App + Barcoding Hardware

Investing in automated inventory management looks a little more expensive on the surface:

Avg. monthly cost: $137.88

Annual cost: $137.88 × 12 = $1,654.56

Hardware costs*: let’s assume a middle-ground investment of ~$600.

First year investment total: $2,254.56

*The initial hardware cost is a one-time investment, quickly amortized through continuous use.

This is a very rough idea of your spending throughout the year that in no way reflects the individual needs and requirements of your business - it could total up to less or more.

Pros and Cons of Automated Inventory Management

Pros:

Substantial long-term cost savings.
Continuous real-time inventory visibility.
Significantly reduced likelihood of human error.
Easily scalable as your business grows and evolves.

Cons:

Automated software solutions initially require some setup, employee training, and adaptation to new processes, though they deliver greater long-term efficiency and savings.

When to Outsource Vs. Count Inventory In-House?

When Inventory Counting Companies Make Sense

Infrequent audits (1–2x/year): more cost-effective for minimal needs
Highly complex or regulated stock: external auditors are often certified for compliance
Limited IT capacity: no tech lift required
Seasonal businesses: ideal for pop-ups or short-term operations

When to Invest in Automated Inventory Management Software

As of 2025, approximately 46% of SMBs have adopted inventory management software, leveraging automation to enhance stock tracking and accuracy. Here’s why:

You perform frequent counts: weekly/monthly audits demand real-time systems
You’re growing quickly: more SKUs and sales channels need scalable tech
You rely on forecasting: data-rich platforms enhance decisions
You want predictable costs: subscription models flatten annual spend

Why HandiFox Online Is a Smarter Long-Term Choice

While third-party services are valuable for occasional, specialized audits, automated inventory software offers ongoing control, cost-efficiency, and clarity. HandiFox Online supports barcode scanning, real-time updates, and smooth QuickBooks integration, empowering you to manage inventory proactively, not just reactively.

Ready to make your stock counts smarter? Check out our Happy Inventory Counting Guide and see how HandiFox can elevate your inventory management game.