Love it or hate it, we’re living in the subscription era.
Once upon a time, running a business meant stacks of paper, boxed software, and costly one-off purchases. But the digital world has changed – and with it, the way businesses spend.
The Rise of the Subscription Economy
Today, nearly everything runs on a subscription. From accounting software subscription (Xero, Smartly, etc) and file storage, to design tools and CRM systems – modern businesses are powered by cloud-based services on monthly or annual plans.
This shift didn’t happen overnight. The decline of bricks and mortar retail, the collapse of traditional advertising models, and the rise of remote work have all paved the way for digital solutions that are flexible, accessible, and scalable.
The benefits are clear:
• No need for large upfront costs
• Always up-to-date software
• Scalable to suit your needs
• Easy to cancel or switch
• Remote access from anywhere
But there’s a catch…
Death by a Thousand Subscriptions
It’s easy to sign up for a new service. It’s harder to keep track of them all.
Many businesses are now dealing with subscription overload – where forgotten, duplicated, or no-longer-used services quietly drain cash each month.
That $20-a-month app might not seem like much on its own. But multiply that by 10, 20, or more – and you’re looking at real money.
How (and Why) to Do a Subscription Audit
We recommend reviewing all business subscriptions at least once a year. Here’s how:
- List current subscriptions – include cloud software subscription, app stores, memberships, and paid tools.
- Review who’s using what – is the subscription still active, and who’s using it? (our recent blog Have You Outgrown Your Tech Stack? will help you review if these tools are still efficient)
- Cancel anything unused or duplicated – you might be surprised what’s lurking in the background.
- Check for annual vs monthly pricing – switching to annual can save money, but only if you’re using it long term.
- Look for all-in-one options – some platforms offer bundles that could replace several tools.
Subscription Strategy = Smarter Spending
Cloud-based subscriptions aren’t going anywhere. They’ve helped level the playing field, letting even small businesses access world-class tools.
But just like anything in your budget, subscriptions need managing. A regular check-in can free up cash, simplify your systems, and make sure you’re only paying for what you actually use.
Need a hand reviewing your business costs or software stack? Engine Room can help you run the numbers.
