SaaS (Software as a Service) has revolutionised the way we access software, offering flexibility and affordability over traditional licences. But, as businesses grow, managing multiple SaaS subscriptions can become costly and chaotic.
The benefits of SaaS
Predictable costs
SaaS eliminates large upfront costs, offering affordable monthly or annual fees. This makes budgeting easier.
No IT hassle
Forget managing your own infrastructure and servers. SaaS providers handle security, maintenance, and updates.
Scalability
Easily add or remove users as your team grows or shrinks, with little friction.
The downsides: managing costs
Total costs add up
Individual subscriptions may seem affordable, but monthly fees can stack up—especially as you scale.
Price increases
You have little control over pricing and often can’t negotiate. Plus, upgrading to a higher tier for basic features (e.g., two-factor authentication) can get expensive.
Hidden costs
Some features you need may only be available on higher-tier plans, even if they seem like basic tools.
Data control issues
Your data lives in someone else’s system. Always check backup procedures and data portability options.
Smart steps to managing SaaS
1
Audit your
subscriptions
Track spending
Use your accounting software (e.g., QuickBooks, Xero) to run a report on all SaaS subscriptions. Look at both monthly and annual charges.
Categorize software
Group tools into 4 categories and act accordingly
* see recommendations on next page
2
Plan for renewals
Know your renewal dates
Keep an eye on upcoming renewals to avoid auto-renewing services you no longer need.
Set calendar reminders
For annual subscriptions, set a reminder months before renewal so you can reassess.
3
Negotiate and maximise value
Ask for discounts
Vendors often offer discounts for annual payments or long-term customers. Don’t hesitate to ask.
Utilise features
Many SaaS platforms have features you might not be using. Watch tutorials, attend webinars, or ask for support to get more value out of your current tools.
Avoid the FOMO trap: Managing AI subscriptions
AI tools are popping up everywhere, and it’s easy to get swept up in the excitement. But be cautious: subscribing to every new AI tool can quickly drive up costs. Before you sign up:
Assess needs vs. wants
Only subscribe to AI tools that genuinely benefit your business.
Negotiate terms
AI features often come with premium costs - ask if they can be included in your current plan.
Auditing your SaaS subscriptions
Categorise your software
We recommend grouping tools into four categories and act accordingly:
Love it!
Essential and irreplaceable
Critical to your business and offer the most value.
You rely on them daily, and they make a significant impact on productivity.
If you’re using them long-term, consider switching to an annual payment to take advantage of discounts and lock in pricing.
Check if you’re using all of the features - there might be additional functionality that could further improve your workflow.
Like it
It's okay, but has issues
Generally good but have some issues, like a complicated interface or missing features.
Get feedback from your team on what’s working or not working.
Instead of abandoning them, consider investing in training or support from the vendor to improve your experience.
A little extra help can often resolve small frustrations and unlock more value from the tool.
Stuck with it
Not working well, but data locked in
These tools no longer meet your needs, but you’re reluctant to move because your data is tied to the platform.
Start planning your exit strategy- look for alternatives and explore how to migrate your data.
Even if it’s a hassle, having a plan for switching ensures you’re not stuck with something that no longer serves you.
Get rid
Cancel immediately
These tools aren’t being used or don’t provide value.
If you’re paying for something you don’t need, it’s time to cancel.
Keeping unused subscriptions is a waste of money, so be ruthless - if you’re not using it, cut it out of your budget now.
Final thoughts
SaaS offers many advantages, but it’s easy for costs to spiral out of control. Regular audits, negotiating better deals, and strategically planning renewals are key to keeping your software expenses manageable.
Take time to evaluate which tools truly add value to your business - and don’t be afraid to cancel the ones that don’t.
