Quick question: How much did your business spend on software subscriptions last month?
If you can't answer that immediately, you're not alone. Most small business owners have no idea. The subscriptions are scattered across different credit cards, PayPal accounts, and team members' personal cards that get expensed later.
But here's the wake-up call: The average 5-person small business team spends $225 per month on SaaS subscriptions. That's $2,700 per year. And most of that money is wasted.
## The Subscription Creep Problem
It starts innocently enough:
"We need project management. Asana looks good. $10.99/user. Done."
"We need to share passwords. LastPass is only $7/user. Easy."
"We need more storage. Dropbox Business is $15/user. Sign up."
"We need better email. Google Workspace is $12/user. Go."
Suddenly you're paying $224.95 per month. For a team of 5.
None of these tools talk to each other. You're switching between tabs all day. Half your team forgets to update their passwords in LastPass. Nobody can find files in Dropbox because they're also in Google Drive.
You're paying for chaos.
## Do the Math (It's Worse Than You Think)
Let's do a real audit. Pull up your bank statements right now. Find every subscription with these patterns:
### Per-User Pricing (The Sneaky Multiplier)
When you signed up, "$10/user" seemed cheap. But as your team grows, so does the bill.
Example breakdown for a 5-person team:
- Asana: $10.99/user × 5 = $54.95/month ($659/year)
- LastPass: $7/user × 5 = $35/month ($420/year)
- Google Workspace: $12/user × 5 = $60/month ($720/year)
- Dropbox Business: $15/user × 5 = $75/month ($900/year)
**Total: $224.95/month or $2,699/year**
And this is just four tools. Most teams use 7-10.
### The Hidden Subscriptions
Now add the ones you forgot about:
- That design tool you tried 8 months ago ($15/month)
- The CRM your sales person set up ($29/month)
- The social media scheduler from last year ($19/month)
- The video conferencing add-on nobody uses ($14/month)
Congratulations, you just found an extra $77/month you didn't know you were spending.
### Annual Subscriptions (The Shock)
These hit all at once and make you question your life choices:
- Adobe Creative Cloud: $600/year
- Accounting software: $300/year
- Domain and hosting: $200/year
These aren't monthly subscriptions slowly draining your account. They're $1,100 surprise bills that hit when you least expect them.
## Why This Happens to Everyone
### 1. Free Trials Are Designed to Make You Forget
"Start your 14-day free trial! No credit card required!"
Then on day 13: "Thanks for trying our app! To continue using it, add your payment info."
You're already using the tool. Your team is in there. Easier to just add the card than migrate away. You're hooked.
### 2. Per-User Pricing Grows Automatically
You hire someone new. They need Asana access. Now your bill is $10.99 higher. Forever.
Nobody told you this would happen. Nobody asked if you wanted to approve it. The new cost just... appears on next month's bill.
With 5 different tools, each new hire adds $50-70 to your monthly expenses.
### 3. Nobody Owns the Subscription Audit
Who's responsible for tracking all the subscriptions? The CEO? The office manager? Finance?
Usually it's nobody. So subscriptions pile up like junk mail.
### 4. "We Might Need It Someday"
That tool you used once for a specific project? You're still paying for it. Because what if you need it again?
(Spoiler: You won't. And if you do, you can sign up again.)
## The 5-Step SaaS Audit
Time to get your money back. Block out 2 hours this week and do this exercise:
### Step 1: List Every Subscription
Go through:
- Bank statements (last 3 months)
- Credit card statements
- PayPal recurring payments
- App Store subscriptions
- Google Play subscriptions
- Team members' expense reports
Create a spreadsheet with:
- Tool name
- Cost per month
- Number of users
- Total cost
- Last time anyone used it
### Step 2: Calculate the Damage
Add it all up. The number will be higher than you expect. Don't panic. This is why we're doing this.
Now multiply by 12. That's what you're spending per year.
### Step 3: Ask Four Hard Questions
For each tool, ask:
**1. Did we use this in the last 30 days?**
If no → Cancel immediately.
**2. Could we use a free alternative?**
Many paid tools have free versions that are fine for small teams.
**3. Does this overlap with another tool?**
If you're paying for both Dropbox and Google Drive, pick one.
**4. Would we sign up for this today at this price?**
If the honest answer is no → Cancel.
### Step 4: Cancel Ruthlessly
You'll feel guilty. "But we paid for the annual plan!" Sunk cost fallacy. Let it go.
"But we might need it next month!" If that happens, sign up again. Most tools let you re-activate.
"But I'm the one who chose this tool!" Not a reason to keep wasting money.
Cancel at least 30% of your subscriptions. You won't miss them.
### Step 5: Consolidate What's Left
This is where the real savings happen.
Instead of:
- Asana ($55/mo)
- LastPass ($35/mo)
- Dropbox ($75/mo)
- Random other tools ($50/mo)
**Total: $215/month**
Look for all-in-one alternatives that do 3-4 things well:
- Task management
- File storage
- Password sharing
- Invoice tracking
Good all-in-one tools cost $40-60/month total. Not per user. Total.
**Savings: $155+/month or $1,860/year**
## What to Do With the Savings
You just found $1,800+ per year. That's:
- A part-time employee for 2 months
- A marketing campaign
- New equipment
- Or just... profit
The point isn't to be cheap. It's to stop paying for digital clutter you don't need.
## The Bigger Lesson
This isn't really about money. It's about mental overhead.
Every tool you use is a decision point:
- "Where did I save that file?"
- "Which tool has the passwords?"
- "Did I update the invoice in Asana or ClickUp?"
Each tool is context switching. Each tool is another login. Each tool is another place for things to get lost.
Fewer tools = less chaos = more focus = better work.
## Take Action This Week
**Monday:** Do the subscription audit. List everything.
**Tuesday:** Cancel the obvious waste (tools you haven't touched in months).
**Wednesday:** Research all-in-one alternatives.
**Thursday:** Pick one and migrate your most critical data.
**Friday:** Cancel the redundant subscriptions.
By next Monday, you could be saving $100+ per month.
Your accountant will thank you. Your team will thank you. Your future self will thank you.
**Ready to simplify?** Trackelly combines invoice tracking, password management, file storage, and task management in one tool. $9.99/user/month. One login, one bill, zero chaos. Try it free for 14 days.