Your 3-Step Audit to Cut Unused Software as a Service (SaaS) License Costs by 20%

Are you noticing that your software bills keep rising even though your team hasn’t grown? Do you suspect you’re paying for licenses no one uses, but aren’t sure where to start cleaning them up? If you’re struggling to verify your SaaS costs and feel like your subscriptions are draining your budget, you are not alone. A recent report by Zylo reveals that organizations waste an average of $21 million each year on unused SaaS licenses without realizing it. Moreover, 66.5% of IT leaders experienced unexpected SaaS charges due to complex pricing models, making cost management difficult.

That’s where a SaaS license audit comes in. You’ll be able to monitor your subscriptions and cut unnecessary costs, so you can get more value for your money. 

Our team understands how difficult it can be to keep track of every active subscription. That is why we have developed a simple 3-step audit process and custom IT solutions so you can spot unused licenses and reduce your software expenses by 20% or more.

How to Audit Your SaaS Subscriptions

Step One: Identify All Active Subscriptions

The first step is to identify every subscription your firm pays for. Create a list of active SaaS products and include key details like the app name, the vendor, billing frequency, cost, and number of user licenses. You can also check your financial records and expense reports. 

If you run a large firm, this process can be lengthy and tiresome. Consider using SaaS management tools to automatically scan your payment records and identify all active accounts. These tools ensure no hidden or forgotten subscription drains your budget each month.

Step Two: Analyze Usage 

After compiling the list, evaluate which tools are actively in use and which are idle. Reviewing each platform’s usage reports will help you track active users and pinpoint software that no longer provides value. This may include:

• Inactive accounts: Note which teams use each tool, what it’s used for, and when it was last accessed. If you discover licenses assigned to employees who rarely log-in or have left the firm, that’s a red flag.
• Duplicate tools: A survey by LeanIX found that 42% of organizations cite redundant applications as a major drain on their IT budgets. Identify cases where multiple platforms perform the same tasks. These overlaps often happen when teams subscribe to tools independently without verifying existing resources.
• Over-provisioned plans: Check for premium subscriptions that offer advanced features that your team rarely or never uses. For instance, you could be paying for unlimited storage while your team only requires the basic plan. These unnecessary expenses can drive up software costs and reduce your long-term ROI.

Most importantly, speak with your partners, department heads, and team leads about which tools are absolutely essential for their daily work. Employees may have personal preferences, but that doesn’t mean every tool needs to be retained. Involving your teams in these decisions helps you find solutions that work for everyone and ensures that the tools you keep are fully utilized.

Step Three: Reclaim, Reassign, or Cancel Unused Licenses

Now that you know where the waste is, it’s time to act. Most SaaS tools allow you to transfer seats instead of buying new ones. This means you can reclaim unused licenses and assign them to active team members who need access.

You can also cancel or downgrade subscriptions that are no longer needed. Many vendors offer flexible plans that allow you to scale down user seats or move to lower-cost tiers without losing functionality. If a tool is only used occasionally, consider switching to a pay-as-you-go or monthly plan instead of an annual one.

You can also negotiate for better pricing. Vendors are often willing to offer discounts, bundle deals, or extended trials to retain customers.

Once you complete your first audit, document the process and schedule a repeat audit, either quarterly or semiannually. This will keep your system lean and prevent unused licenses from piling up again. 

Don’t Let Unused Licenses Drain Your SaaS Budget

It’s easy to underestimate how much your firm loses to inactive subscriptions. A few unused licenses may seem harmless, but if they exist across departments, they can drain your budget. 

The real cost isn’t just financial. Unmanaged SaaS can cause security vulnerabilities and confusion.  For instance, when multiple tools serve the same purpose, employees waste time switching between platforms, which can lower productivity. Too many tools also provide more gateways for hackers to exploit.

Before your next billing cycle, take the time to perform a SaaS license audit. Start with a list of tools in your workflows, analyze usage, and remove what’s unnecessary. Even a single audit can reduce your software spend by 20% or more, without sacrificing the tools your firm relies on.

At Digital Crisis, we help law firms identify hidden SaaS waste and optimize their software stack to enhance efficiency. Our experts use advanced monitoring tools to identify unused licenses and implement long-term SaaS governance strategies. Reach out today to schedule a consultation with our SaaS experts.