How to Audit Your SaaS Subscriptions: A Step-by-Step Guide

The average company uses 130+ SaaS applications. And according to Zylo's SaaS Management Index, about 30% of that spend is completely wasted on unused or underutilized subscriptions. Here's how to find and fix the waste in your software stack.

Step 1: Create Your SaaS Inventory

You can't manage what you can't see. Start by building a complete list of every software subscription your company pays for.

Where to look:

• Credit card and bank statements (last 12 months)
• Expense reports and reimbursements
• Accounts payable records
• IT department records
• Ask department heads directly—they often have tools finance doesn't know about

For each subscription, document:

• Vendor name and product
• Monthly/annual cost
• Number of licenses
• Contract renewal date
• Notice period for cancellation
• Who owns the relationship

Step 2: Assess Usage

Now that you have your inventory, it's time to figure out what's actually being used.

For each tool, ask:

• How many people have access vs. how many actively use it?
• Is this tool's functionality duplicated by another tool we have?
• When was the last time someone logged in?
• Could we accomplish the same thing with a cheaper or free alternative?

Many SaaS tools provide admin dashboards showing login frequency and feature usage. Use them.

Step 3: Categorize and Prioritize

Sort your subscriptions into four categories:

Step 4: Take Action

Here's the critical part most companies miss: timing matters.

You can't just decide to cancel a subscription and do it immediately. Most contracts have notice periods—often 30, 60, or even 90 days before renewal. Miss that window, and you're locked in for another term.

For each subscription you want to change:

1. Check your contract for the notice period
2. Calculate the deadline (renewal date minus notice period)
3. Set reminders well in advance (90/60/30 days)
4. Take action before the deadline

Step 5: Make It Ongoing

A one-time audit is good. An ongoing system is better. Set up a process to:

• Track all new subscriptions as they're added
• Review usage quarterly
• Get automatic reminders before renewal deadlines
• Require approval for new tool purchases