Every month, startups unknowingly lose thousands on software subscriptions they don’t even use. It’s not intentional, it’s just what happens when teams grow fast and add tools reactively without oversight.
Take one company I worked with as an example. They discovered their engineering team was using multiple collaboration tools with overlapping features and minimal integration. The result? Confusion, missed deadlines, and tens of thousands wasted annually on tools no one needed or used effectively.
This isn’t rare. Experts estimate that up to 30% of SaaS budgets vanish into forgotten apps, unused features, and sneaky auto-renewals. The real problem? Most companies don’t see this hidden drain until it’s too late.
Step 1: Shine a Light on Shadow Software
The first step to taking control is seeing everything you have, even software your teams might be using without IT knowing. Traditional methods like employee surveys often miss the mark because people forget what tools they use or finance doesn’t track apps bought with personal cards.
Instead, use simple discovery tools to scan your systems for all active subscriptions. Many of these tools offer free options to get started quickly. Set up these scans weekly so you can identify new apps as they appear, track logins, and monitor usage rates over time.
For every tool you uncover, ask three key questions:
- Who owns this tool?
- What purpose does it serve?
- How much does it cost relative to its usage?
You may download our SaaS audit worksheet to track these tools after discovery.
Visibility isn’t just about knowing what you have, it’s about understanding how your teams are using those tools and whether they’re worth keeping.
Link your software discovery tools to your accounting system so you can automatically flag underused tools or those costing more than their value. This also helps you catch auto-renewals before they hit your budget unexpectedly.
Compare departmental spending patterns to spot inefficiencies or redundancies across teams. A good rule of thumb is the “3-Click Rule”: If employees can’t find critical information within three clicks across their tools, it’s time to consolidate or improve integrations.
Step 3: Create Your Central Overview
Spreadsheets can quickly become overwhelming when managing dozens of software subscriptions across departments. To keep things organized, set up a central dashboard where you can track licenses, costs, and usage in real time.
Automate alerts for underused tools, upcoming renewals, or apps flagged for security risks. Make quarterly “SaaS Checkups” part of your routine: review usage data, remove forgotten tools, merge duplicates where possible, and cancel unused licenses.
The Visibility Payoff
When you have full visibility into your SaaS stack, you gain control over costs while empowering teams with better workflows and fewer distractions. Companies that master SaaS visibility often recover 20-30% of their software budgets annually while reducing tool overload and spotting security risks faster.
Your First Move
Start by running a quick audit using a checklist to map your current software landscape. Ask yourself:
- What SaaS tools are our teams currently using?
- Are there any overlapping features between tools?
- Who has access to each tool? Are we paying for unused licenses?
- When are our key subscriptions up for renewal?