Octobits Blog – SaaS subscription audits are a necessary routine that uses software as a service (SaaS) solutions.
Audits help you make sure your business uses your SaaS solutions efficiently and cost-effectively.
The more businesses use SaaS applications, the more important it is to review them regularly to make sure nothing is being paid for twice or that they’re not being underused.
So, let’s talk about the ins and outs of SaaS subscription audits.
What is a SaaS Subscription Audit?
A SaaS subscription audit is a thorough review of an organization’s SaaS applications to assess how they’re being used, how much they’re costing, and how effective they are.
The main aim is to spot any inefficiencies, such as unnecessary subscriptions, underused services, or ways to cut costs.
By looking at each subscription, businesses can make sure they’re only paying for the services they actually use and need, which helps them run more smoothly and manage their budgets better.
For reference, you can read “Developing a Scalable SaaS Subscription Model: A Practical Guide for You.”
Why Conduct SaaS Subscription Audits?
The audit process is all about mapping all the spend data to figure out who buys SaaS internally and how much is spent.
One of the best reasons to do SaaS subscription audits is to make sure you’re getting the best deal and have the best cost efficiency.
In “Average number of software as a service (SaaS) applications used by organizations worldwide from 2015 to 2022,” Statista revealed organizations worldwide were using an average of 130 software as a service (SaaS) applications in 2022.
Those numbers cost a pretty penny if you don’t manage them properly. Regular audits help businesses identify unused or redundant subscriptions, which can lead to savings on unnecessary expenses.
This process helped the company cut unnecessary costs by finding and getting rid of services that weren’t being used much.
Another great thing about SaaS subscription audits is that they help you get the most out of your subscription. A lot of companies don’t make the most of the SaaS apps they’ve signed up for.
By auditing these subscriptions, businesses can reallocate resources to get the most out of their investments.
In the CloudSphere client study case, a Texas-based SaaS company found itself facing unexpected bills from unmanaged environments and larger-than-expected development and QA spending.
By using CloudSphere’s Cloud Governance Platform, the company gained better visibility into its cloud spending. This helped them shut down idle resources and optimize their overall SaaS utilization.
Security and compliance are two areas where SaaS subscription audits are really important.
It’s vital to make sure all SaaS apps are up to security standards. Audits help find any apps that might be a security risk or not up to industry standards.
Another great thing about doing SaaS subscription audits is that it helps you manage your vendors better.
Regular audits give you a better understanding of how your vendors are performing and can help you renegotiate contracts to better align with your usage patterns and business needs.
Key Steps in Performing a SaaS Subscription Audit
The first thing we need to do is get a list of all the SaaS apps we’re currently using, including the cost of the subscription, when it’s due to renew, and how many users are on each one.
It’s really key to have this inventory collection done right, as most organizations don’t realize how many SaaS apps they have. They often find they have more than they thought.
Next, we do a usage analysis to see how each application is being used.
This helps us find out which applications we’re not using, so we can work out the total cost of ownership, which includes indirect costs like support and training.
After that, we do a cost assessment, comparing the costs against the usage data. This helps us find areas where we can cut back on expenses.
Also, it’s important to identify any redundancies. This is where we look for duplicate apps or overlapping features that can be combined or removed, saving costs.
In-depth reviews can show which tools are essential and which ones are superfluous. Once we’ve identified what we don’t need, we can start to make some changes.
We’ll cancel any unused subscriptions, consolidate similar applications, and renegotiate contracts to better align with our usage patterns. This plan needs to be flexible, so it can be adjusted as needed.
The last thing to do is implement and monitor. Once you’ve made the changes in the optimization plan and set up a routine monitoring process, you’ll be able to keep things running smoothly and keep costs down.
And for sure, you need to be in line with trends. That’s why we recommend you read “The Future of SaaS: Trends and Predictions for Staying Ahead in Business.”
Tools and Software for SaaS Subscription Audits
There are lots of tools and software out there, all with their own special features, to help you with your SaaS subscription audits. So here are several notable tools and software.
Octobits
Octobits offers in-depth analytics on SaaS usage, cost tracking, and compliance monitoring. This helps companies find ways to make their processes more efficient and cost-effective.
With all the info it gives you on how your apps are being used, Octobits helps you make better decisions about SaaS investments.
The good news is Octobits is free until the end of December 2024. So, you can try Octobits for several weeks to adjust with your business needs and goals.
Blissfully
Blissfully is known for its extensive SaaS management capabilities, including automated workflows, spend tracking, and compliance management.
Blissfully’s automated features make it easier to manage all your SaaS apps, so you can keep track of spending and make sure everything’s on the up-and-up.
Zylo
Zylo’s all about helping businesses get the most out of their SaaS spending and usage. You can check out Zylo’s complimentary SaaS audit here.
Maxio
Maxio, formerly SaaSOptics, has the tools you need for robust subscription management, revenue recognition, and financial reporting.
This tool is for finance teams because it provides them with all the information they need to manage renewals and revenue forecasts.
G2 Track
G2 Track helps businesses manage their SaaS stack by giving them a clear picture of how they’re using it, how much they’re spending, and who they’re working with.
G2 Track makes it easy to keep track of all your SaaS apps and helps you find ways to save money with detailed usage reports and features for managing your vendors.
Conclusion
In today’s fast-changing SaaS world, businesses should regularly review their subscriptions to stay cost-efficient and maximize their investments.
If you use the right approach and tools, SaaS subscription audits are a necessary routine to make sure your company is running as efficiently and financially healthy as it can be.
