How to find unused software licences for small business
Summary
This guide helps you troubleshoot and resolve: How to find unused software licences for small business. Follow the steps below to fix the issue.
Common Causes
How to find unused software licenses for small business
Many small businesses accumulate unused software subscriptions over time, often continuing to pay for licenses belonging to former employees or tools that are no longer used. This article outlines a practical process for auditing SaaS subscriptions, identifying underutilized licenses, and implementing a license management strategy to reduce unnecessary monthly expenditure within Microsoft 365 and other cloud tools.
Quick Fix Steps
- Export a full list of all active software subscriptions from your billing records.
- Cross-reference active licenses against your current employee directory.
- Identify licenses assigned to former employees or unused applications.
- Reassign or cancel unused licenses through the vendor administration portal.
- Set calendar reminders for upcoming renewal dates to avoid auto-renewal surprises.
Detailed Instructions
Step 1: Create a subscription inventory
Before you can right-size your licenses, you need a complete picture of what you are paying for. Gather invoices, credit card statements, and vendor receipts from the last 12 months.
- List every SaaS tool, the vendor name, monthly or annual cost, and renewal date.
- Note who the primary account holder is for each subscription.
- Record the total number of seats purchased versus the number of seats currently assigned.
Step 2: Audit Microsoft 365 licenses
If your organisation uses Microsoft 365, the admin centre provides visibility into license usage.
- Sign in to the Microsoft 365 admin center with an administrator account.
- In the left-hand navigation, select Billing, then choose Licenses.
- Review the list of products to see how many licenses are purchased and how many are assigned.
- Select a product to view a detailed list of users and their assigned license status.
- Identify any Unassigned licenses or accounts belonging to former employees.
Tip: Use the Active users page under Users to quickly see which accounts are active and which have been blocked or deleted.
Step 3: Audit other cloud tools
For non-Microsoft subscriptions such as design tools, project management software, or accounting platforms, log in to each vendor's admin console.
- Navigate to the Account, Billing, or Team section of the vendor portal.
- Look for a License management or Seat management page.
- Export the user list if available and compare it against your current staff roster.
- Remove access for users who have left the business or no longer require the tool.
Step 4: Reassign or cancel unused licenses
Once you have identified waste, take action to reduce costs.
- Reassign licenses from departed employees to new starters where possible.
- Downgrade plans for users who do not require premium features.
- Cancel subscriptions for tools that have not been accessed in the last 90 days.
- Confirm cancellation dates to ensure you are not billed for another billing cycle.
Caution: Before cancelling a license, export any important data from the user's account. Once a license is removed, associated files and emails may become inaccessible or be deleted after a retention period.
Step 5: Set up renewal tracking
Avoid auto-renewal surprises by tracking when each subscription is due to renew.
- Create a spreadsheet or use a license management tool to record renewal dates.
- Set calendar reminders 30 days and 7 days before each renewal date.
- Assign a staff member to review each subscription before it renews.
- Disable auto-renewal for tools you are unsure about, then manually renew only if still needed.
Troubleshooting
I cannot find the license management page
Vendor interfaces change frequently. If you cannot locate the license section, check the vendor's help documentation or search for "manage seats" or "billing" within the admin portal. If you are an Account Owner or Global Administrator, you should have access to billing settings.
A former employee's account is still active
If you do not have the password to a former employee's account, use the administrator panel to reset the password or block sign-in. In Microsoft 365, go to Users > Active users, select the user, and choose Block sign-in. Then remove their license to free up the seat.
We are locked out of a subscription account
If the original purchaser has left the business and you cannot access the admin panel, contact the vendor's support team. You will typically need to provide proof of business ownership or authority to manage the account.
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